please provide narrations also along with full work step by step Delta Air Lines owns hundreds of aircraft, with about 60 percent of its fleet consisting of Boeing aircraft, while Airbus aircraft make up about 40 percent. It sold seven used Boeing 767-300 jets to Amazon.com as Amazon plans to expand its growing Amazon Air cargo service. The average age of the jets is about 20 years old. Assume the records of the company reflected the following for the jets that were sold: Aircraft cost Accumulated depreciation Required: 1. Prepare the journal entry for the disposal of the airplanes, assuming that the airplanes sold for: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. $15,700,000 cash $16,300,000 cash $14,600,000 cash Journal entry worksheet < 1 2 $62,500,000 46,800,000 3 Record the disposal of the aircraft, assuming the aircraft were sold for $15,700,000 cash. Transaction Note: Enter debits before credits. a General Journal Debit Credit >
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- Your business operates on January 1 to December 31 calendar year basis. On April 1, 2020 you purchased a new delivery truck for your business. The truck was imported from India. The price of the truck is $50,000. Other costs related to truck are as follows: insurance during transporatation $2,000, painting and lettering your company logo $500, one year road insurance $1,000, sales taxes and fees $2,500, oil and lubricants for the truck $500, import taxes $5,000. The truck's estimated useful life is 7 years and you expect that the salvage value of the truck will be $1,000. It will be depreciated using the double declining method. Your task: Using the double declining method, prepare a full depreciation schedule for the truck. Assume that on December 31, 2024, you sell this truck for $12,000. Prepare a journal entry for this sale. Assume on December 31, 2025 the truck is destroyed in an accident and have to be disposed with no salvage. Prepare a journal entry for the disposal. Assume…Shawn John and his wife operate a successful snack packaging business, Healthy Snacks, in St Mary, Jamaica. The bulk buying of the raw materials (nuts and dried fruits), the packaging and delivery to corporate area shops are done by the members of the family. The accounts for Mr. John’s business at 31st December 2015 showed a profit of $4,500,000 after charging: • $180,000 depreciation of equipment and office furniture; • $750,000 for salary to his wife who supervises the office, $496,000 to his 18 year old son Shane, and $1,720,000 to himself. • $78,000 interest on a loan he had obtained to expand his business 3 years ago. (a) Prepare a statement; with notes where applicable; of the Healthy Snacks business showing the taxable profits and income tax liability for the year of assessment 2015 for Shawn John (b) Shane is a part-time student at the University of the West Indies. What is his tax liability, if any?At the beginning of the year, an audio engineer quit his job and gave up a salary of 175.00 per year to start his own business Sound Devices Inc. The company builds, installs and maintains custom audio equipment for a business that require high-quality audio-systems. A partial income statement for the first year of operation for Sound Devices Inc. is shown below: Revenue Revenue from sales of product and services $970,000 Operating cost and expenses Cost of products and services sold $355,000 Selling Expenses $155,000 Administrative Expenses $45,000 Total Operating cost and expenses 555,000 Income from operations $415,000 Interest expenses (Bank Loan) $45,000 Legal Expenses to start business $28,000 Income taxes $165,000 Net Income $177,000 To get started, the owner of Sound Devices spent $100,000 of his personal savings to pay for some of the capital equipment used in the business. During the first year of operation, the owner of Sound Devices Inc.…
- Marshall Co. is a management consulting company that incorporated on March 15, 2021 and has a December 31 year end. They began renting their office space on April 1st and immediately purchased furniture and fixtures for $46,900. They also purchased computer hardware for $9,000 (class 50 with 55% CCA rate). Marshall, the company president, also purchased a 2021 Land Rover for $134,000.Required: Determine the maximum CCA that can be taken in 2021.Jojomat Ltd owns a small business making and selling children’s toys. The following trial balance was extracted from her books on 31 December 2020: Particulars Debit RM Credit RM Capital 15,000 Drawings 2,000 Sales 90,000 Inventory at 1 January 2020: Raw materials Finished goods 3,400 6,100 Purchased of raw materials 18,000 Carriage inwards 800 Factory wages 18,500 Office salaries 16,900 Jojomat : Salary and expenses 10,400 General expenses: Factory Office 1,200 750 Lighting 2,500 Rent 3,750 Insurance 950 Advertising 1,400 Bad debts 650 Discount received 1,600 Carriage outwards 375 Plant and machinery, a cost less depreciation 9,100 Car, at cost less depreciation 4,200 Bank 3,600 Cash in hand 325 Account receivable and account payable 7,700 6,000…Jojomat Ltd owns a small business making and selling children’s toys. The following trial balance was extracted from her books on 31 December 2020: Particulars Debit RM Credit RM Capital 15,000 Drawings 2,000 Sales 90,000 Inventory at 1 January 2020: Raw materials Finished goods 3,400 6,100 Purchased of raw materials 18,000 Carriage inwards 800 Factory wages 18,500 Office salaries 16,900 Jojomat : Salary and expenses 10,400 General expenses: Factory Office 1,200 750 Lighting 2,500 Rent 3,750 Insurance 950 Advertising 1,400 Bad debts 650 Discount received 1,600 Prepared by: Puan Siti Nor Junita Mohd Radzi Carriage outwards 375 Plant and machinery, a cost less depreciation 9,100 Car, at cost less depreciation 4,200 Bank 3,600 Cash in hand 325 Account receivable and account…
- Terrar Bhd is a company engaged in trading of motor vehicles. With increasing orders received by the company since its incorporation, Terrar Bhd is optimistic of a better sales growth in the future. The company closes its account on every 31 December. In order to meet customers’ demand for its product, the company acquired the plant assets of Cosmic Sdn Bhd on 2 March 2013. The plant assets consist of: Cost (RM) Land 3,200,000 Building 4,500,000 Warehouse 600,000 Terrar Bhd also incurred the following expenditure in cash between 15 March and 15 May 2013: Ordinary repairs to the building RM 17,000 Additions to the building RM 300,000 The building was estimated to have useful life of 10 years with no residual value. The company used…The Wizz Electronics sells a variety of electronic devices including a variety of WIFI SMART camerabulbs. The business began the second quarter (April to June) of 2022 with 15 (V380PRO) camera bulbsat a total cost of $108,750. The following transactions relating to the “V380PRO” camera bulbs werecompleted during the quarter.April 7 90 bulbs were purchased at a cost of $6,850 each. In addition, the business paid freightcharges of $800 cash on each bulb to have the inventory shipped from the point ofpurchase to their warehouse.April 30 The sales for April were 75 bulbs which yielded total sales revenue of $803,250. (15 ofthese bulbs were sold on account to two longstanding customers of the business)May 6 A new batch of 80 bulbs was purchased at a total cost of $654,800May 9 Upon inspection of the inventory purchased on May 6, five (5) of the bulbs were found tobe defective and were returned to the supplier.May 31 During the month 62 of the camera bulbs were sold at a price of $11,450…The Wizz Electronics sells a variety of electronic devices including a variety of WIFI SMART camerabulbs. The business began the second quarter (April to June) of 2022 with 15 (V380PRO) camera bulbsat a total cost of $108,750. The following transactions relating to the “V380PRO” camera bulbs werecompleted during the quarter. April 7 90 bulbs were purchased at a cost of $6,850 each. In addition, the business paid freightcharges of $800 cash on each bulb to have the inventory shipped from the point ofpurchase to their warehouse. April 30 The sales for April were 75 bulbs which yielded total sales revenue of $803,250. (15 ofthese bulbs were sold on account to two longstanding customers of the business) May 6 A new batch of 80 bulbs was purchased at a total cost of $654,800 May 9 Upon inspection of the inventory purchased on May 6, five (5) of the bulbs were found tobe defective and were returned to the supplier. May 31 During the month 62 of the camera bulbs…
- Suzi Nomro operates Watercraft Supply Company, an online boat parts distributorship that is in its third year of operation. The following income statement was prepared for the year ended October 31, 2019. Watercraft Supply Company Income Statement For the Year Ended October 31, 2019 Revenues: Sales .........................................................$1,350,000 Interest ......................................................15,000 Total revenues .............................................$1,365,000 Expenses: Cost of merchandise sold ......................................$810,000 Selling expenses ..............................................140,000 Administrative expenses .......................................90,000 Interest expense...............................................4,000 Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,044,000 Net income .......................................................$321,000 Suzi is…Solomon Company started year 1 with $270,000 in its cash and common stock accounts. During year 1, Solomon paid $202,500 cash for employee compensation and $62,100 cash for materials. Required Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Solomon used the labor and materials to make 1,500 chairs. Further, assume that Solomon sold 1,200 of the chairs it made. State the name(s) of the expense account(s) shown on the income statement. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Solomon used the labor and materials to provide dental cleaning services to 500 patients. State the name(s) of the expense account(s) shown on the income statementYour business operates on January 1 to December 31 calendar year basis. On April 1, 2020, you purchased a new delivery truck for your business. The truck was imported from India. The price of the truck is $50,000. Other costs related to the truck are as follows: insurance during transportation $2,000, painting and lettering your company logo $500, one-year road insurance $1,000, sales taxes and fees $2,500, oil and lubricants for the truck $500, import taxes $5,000. The truck's estimated useful life is 7 years and you expect that the salvage value of the truck will be $1,000. It will be depreciated using the double-declining method. Your task: Assume that on December 31, 2024, you sell this truck for $12,000. Prepare a journal entry for this sale. Assume on December 31, 2025, the truck is destroyed in an accident and has to be disposed of with no salvage. Prepare a journal entry for disposal.