Prepare the general journal entries for the following transactions. 20-a Jan. 2 Purchased land with a building on it for $750,000. The land is worth $300,000. Paid $150,000 down and signed a mortgage to be paid over 20 years. Dec. 31 Depreciation is computed using the straight-line method. The building has an estimated salvage value of $75,000 and an estimated life of 20 years.20-b Jul. 1 The building and the land are sold for $825,000 cash. If an amount box does not require an entry, leave it blank
Q: A machine costing $75,000 is purchased on September 1, Year 1. The machine is estimated to have a…
A: Excel Spreadsheet:
Q: stlons displayed below.] Onslow Co. purchases a used machine for $192,000 cash on January 2 and…
A: The cost of asset include all the cost incurred in making it ready to be put to use. The asset need…
Q: A small delivery truck was purchased on January 1 at A cost of $25,000 it has an estimated useful…
A: Depreciation is considered a reduction in the value of assets due to use of that asset. We can…
Q: Nerdz, Inc. has just acquired a new truck for use in the business. Cost of the truck was $40,000.…
A: SOLUTION- DEPRECIATION REFERS TO THE AMOUNT OF PERMANENT LOSS IN THE VALUE OF AN ASSET. IT IS…
Q: A building was purchased on August 1 for $490,000. It has a salvage value of $38,000 and a useful…
A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: On January 1, Year 1, Pearson Moving Company paid $41187 cash to purchase a truck. The truck was…
A: Formula: Straight line method depreciation: = ( Asset value - Salvage value ) / Useful life
Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $52,000. It is…
A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%
Q: On January 1, Year 1, Martin Mowing Company paid $64,000 to purchase a truck. The truck was expected…
A: Depreciation is the expense which is non-cash in nature and it is reported on the income statement…
Q: used wrecker for $35,000 cash. It has an estimated useful life of three years and a $6,000 salvage…
A: The income statement as,
Q: Prepare journal entries to record the machine's disposal under each separate situation: (a) it is…
A: As per AS-10 "Accounting for Fixed Assets", expenses incurred on acquiring the asset and expenses…
Q: Assume that in January 20X6, a Hotcake House restaurant purchased a building, paying $57,000 cash…
A: Income statement refers to those financial statements of a company which shows the revenues and…
Q: During April of the current year, Ronen purchased a warehouse that he used for business purposes.…
A: MACRS means Modified Accelerated Cost Recovery System. It is the depreciation system that is…
Q: NewTech purchases computer equipment for $263,000 to use in operating activities for the next four…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: NewTech purchases computer equipment for $261,000 to use in operating activities for the next four…
A: Solution: Choose Numerator / Choose Denominator = Annual Depreciation Cost minus salvage /…
Q: On July 1, 2021, Rodger Construction Co. bought a new concrete mixer. The mixer cost $54,000. The…
A: Depreciation is a non-cash expense that can applicable on fixed assets. Depreciation reduces the…
Q: Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840…
A:
Q: On January 1, Walker purchased a used machine for $150,000. On January 4, Walker paid $3,510 to wire…
A: Straight line method depreciation: = ( cost of asset - salvage value ) / number of useful years…
Q: Prepare the general journal entries for the following transactions. 20-a Jan. 2 Purchased land with…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: NewTech purchases computer equipment for $154,000 to use in operating activities for the next four…
A: Annual Depreciation (Straight line method) = (Cost of the assets - Salvage value) / Life of the…
Q: Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The…
A: Under Straight-line Depreciation Method : Yearly Depreciation expense = ( Cost of asset - Salvage…
Q: [The following information applies to the questions displayed below.] Onslow Company purchased a…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful…
A: Solution: Cost of equipment = $350,000 Estimated residual value= $50,000 Useful life = 10 years Rate…
Q: On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Mount Vernon Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000…
A: Straight line depreciation is a method of depreciation where the cost is allocated on the basis of…
Q: ee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The…
A: Cost of the asset = 72000 Salvage value = 2000 life of the asset = 5years Straight line method of…
Q: NewTech purchases computer equipment for $154,000 to use in operating activities for the next four…
A: Given information is: New Tech purchases computer equipment for $154,000 to use in operating…
Q: repare the general journal entries for the following transactions. 20-a Jan. 2 Purchased land with…
A: When an asset is sold, the depreciation expenses for the period for which it was used in the…
Q: A truck was purchased on January 2 at a cost of $60,000. It is expected to be used for 5 years and…
A: Assets: Assets are the resources of an organization used for the purpose of business operations.…
Q: NewTech purchases computer equipment for $261,000 to use in operating activities for the next four…
A: Depreciation rate = 2 x 1/Useful life = 2 x 1/4 = 50% Depreciation for the period End of period…
Q: A building is acquired on January 1, at a cost of $980,000 with an estimated useful life of 10 years…
A: Solution- Depreciation for the period End of Period Annual Period Beg. of period book…
Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000, It is…
A: Given, Cost of asset = $170,000 Useful life = 5 years Salvage value = 30,000 Under straight line…
Q: On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five…
A: Straight-Line Method (SLM): SLM is a method to calculate depreciation in which the amount of…
Q: [The following information applies to the questions displayed below.] NewTech purchases computer…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Assume that in January 20X6, a Hotcake House restaurant purchased a building, paying $57,000 cash…
A: Income statement forms a part of financial statements of company and is prepared to ascertain the…
Q: On July 10, 20X8, your firm purchases for $126,000 a machine with an estimated useful life of 8…
A: Introduction Some of year digit (SYD) is a method is a accelerated method of depreciation that uses…
Q: Prepare the general journal entries for the following transactions. 20-a Jan. 2 Purchased land with…
A: A journal entry is a type of accounting entry that is used to record a business transaction in a…
Q: On January 1, Year 1, Melon Moving Company paid $60,000 to purchase a truck. The truck was expected…
A: Under the straight line depreciation method, annual depreciation expense is consistent over the…
Q: On April 1, 20-3, Kwik Kopy Printing purchased a copy machine for $50,000. The estimated life of the…
A: 1a. Record adjusting entries for depreciation on December 31 of 20-3 through 20-5 as shown below:
Q: On January 1, Year 1, Pearson Moving Company paid $41187 cash to purchase a truck. The truck was…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Ironworks Industries purchased a piece of equipment for $80,000 with an estimated salvage value of…
A: Equipment Cost = $ 80000 Less: Salvage Value =($ 15000)…
Q: Accounting for Property, Plant and Equipment During the first few days of the year, Coast Company…
A: Cost of acquisition will include all those expenditures incurred to bring the asset to its current…
Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $52,000. It is…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: [The following information applies to the questions displayed below.] NewTech purchases computer…
A: Formula: Annual Depreciation (straight-line method) = Depreciable value of the assets / Expected…
Q: On July 1, 2001, Company Ronaldo purchased a building at $1,500,000. Building is depreciated using…
A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…
Q: On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: A company purchased new furniture at a cost of $12,000 on September 30. The furniture is estimated…
A: Depreciation is termed as the reduction in the value of a tangible. The value of an asset keeps…
Q: [The following information applies to the questions displayed below.] NewTech purchases computer…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Prepare the general
Jan. | 2 | Purchased land with a building on it for $750,000. The land is worth $300,000. Paid $150,000 down and signed a mortgage to be paid over 20 years. |
Dec. | 31 |
Jul. | 1 | The building and the land are sold for $825,000 cash. |
If an amount box does not require an entry, leave it blank.
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 3 steps with 4 images
- The following schedule of assets and liabilities relates to Kona Enterprises. Their year-end is 28 February.20222023Income received in advance2 0001 000Input VAT3 0003 500Output VAT6 50011 500Prepaid expenses7 5005 000Accumulated depreciation: Equipment30 00035 000Equipment90 000100 000Fixed deposit (maturing on 31 May 2023)40 00040 000Savings account13 50018 500Bank overdraft04 500Accrued expenses16 00010 500Accrued income9 50012 000Trade receivables34 00041 500Trading inventory105 000115 000Land and Buildings950 000950 000Mortgage loan: Vida Bank450 000380 000Trade payables150 000170 000REQUIRED:Q.4.1Calculate the level of working capital (total current assets) as at the financial years ended 28 February 2022 and 28 February 2023.(8)Q.4.2Calculate the total for current liabilities as at the financial year ending 28 February 2022 and 2023.(6)Q.4.3Calculate the net working capital as at the two dates for statement of financial position, as well as the current ratio for each year.…help me Question 6The following trial balance was extracted from the ledger of Juliana at 31 December2020.JulianaTrial Balance as at 31 December 2020RM RMLand at cost 26,000Plant at cost 83,000Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases 516,000Returns inwards 47,000Discount allowed 4,000Capital at 1st January 2020 230,000Drawings 14,000Provision for doubtful debts at 1 January 2020 23,000Salaries Expense 44,000Administration costs 38,000Bank 75,000Bad debts written off 77,000Inventory at 1 January 2020 84,0001,164,000 1,164,000Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciationon office equipment is charged at 20% per annum using the reducingbalance method. Administration costs include insurance prepaid of RM3,000. Salary accrued amount to RM2,000. The…1. The adjusting entry to correct the entry made on trade-in of Machine 3 will include aa. Debit to Accumulated Depreciation P67,500b. Debit to Loss on Exchange P58,500c. Credit to Production Machine P67,500d. Credit to Cash P192,000 2. The total depreciation for the year ended December 31, 2020 isa. P237,000 c. P233,250b. P232,500 d. P236,250 3. The carrying amount of production machine as of December 31, 2020 isa. P1,024,500 c. P1,069,500b. P1,029,000 d. P 990,750
- The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:Dec 31 20Y9 Dec 31 20Y8ASSETSCash $ 70,720 $ 47,940Accounts Receivable 207,230 188,190Inventories 298,520 289,850Investments - 102,000Land 295,800 -Equipment 438,600 358,020Accumulated Depreciation-Equipment (99,110) (84,320)Total Assets $ 1,211,760 $ 901,680LIABILITIES AND STOCKHOLDERS' EQUITYAccounts Payable $ 205,700 $ 194,140Accrued Expenses Payable (operating expenses) 30,600 26,860Dividends Payable 25,500 20,400Common Stock, $1 par 202,000 102,000Paid-in Capital; Excess of issue price over par-common stock 354,000 204,000Retained Earnings 393,960 354,280Total Liabilities and Stockholders Equity: $ 1,211,760 $ 901,680Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:A. Equipment and land were acquired for cashB. There were no disposals of equipment during the year.C. The investments were sold for $91,800 cash.D. The common stock was…P12.1B (L0 1,2,3,5) (Correct Intangible Asset Account) Dolphin Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021: Instructions 3/1/2020 3/1/2020 4/1/2020 6/30/2020 9/1/2020 12/31/2020 6/30/2021 9/1/2021 Intangible Assets 10-year franchise agreement; expires 2/28/28 Organization costsAdvance payment for 2 years for office space Purchased a patent (8-year life) Cost to develop a patent (10-year life) Net operating loss for 2020Research and development costsLegal fee to successfully defend internally developed patent $ 60,000 7,000 24,000 80,000 40,000 61,000 265,000 13,500 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore…You are presented with the following trial balance of Carl Ltd at 31 October 2018.Dr CrR,000 R,000Building at cost 740Buildings, accumulated depreciation, 1 November 2018 60Plant at cost 220Plant, accumulated depreciation, 1 November 2018 110Land at cost 235Bank balance 50Revenue 1,800Purchases 1,105Discounts received 90Returns inwards 35Wages 180Energy expenses 105Trade Payables 250Trade Receivables 320Inventory at 1 November 2018 160Allowance for debtors at 1 November 2018 10Administrative expenses 80Director's remuneration 70Accumulated profit at 1 November 2018 13010% Debenture 50Dividend paid 30R1 Ordinary shares 650Share premium account 803,280 3,280Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost,…
- You are presented with the following trial balance of Carl Ltd at 31 October 2018.Dr CrR,000 R,000Building at cost 740Buildings, accumulated depreciation, 1 November 2018 60Plant at cost 220Plant, accumulated depreciation, 1 November 2018 110Land at cost 235Bank balance 50Revenue 1,800Purchases 1,105Discounts received 90Returns inwards 35Wages 180Energy expenses 105Trade Payables 250Trade Receivables 320Inventory at 1 November 2018 160Allowance for debtors at 1 November 2018 10Administrative expenses 80Director's remuneration 70Accumulated profit at 1 November 2018 13010% Debenture 50Dividend paid 30R1 Ordinary shares 650Share premium account 803,280 3,280Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost,…You are presented with the following trial balance of Carl Ltd at 31 October 2018.Dr CrR,000 R,000Building at cost 740Buildings, accumulated depreciation, 1 November 2018 60Plant at cost 220Plant, accumulated depreciation, 1 November 2018 110Land at cost 235Bank balance 50Revenue 1,800Purchases 1,105Discounts received 90Returns inwards 35Wages 180Energy expenses 105Trade Payables 250Trade Receivables 320Inventory at 1 November 2018 160Allowance for debtors at 1 November 2018 10Administrative expenses 80Director's remuneration 70Accumulated profit at 1 November 2018 13010% Debenture 50Dividend paid 30R1 Ordinary shares 650Share premium account 803,280 3,280Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost,…Adjustment for depreciation The estimated amount of depredation on equipment for the current year is $133,000. a. How is the adjustment recorded? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b. If the adjustment in (a) was omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?
- 14 - Our company has purchased a land for 472.000 TL including 18% VAT. Which of the following accounts is correct to use in the relevant accounting record ? a) 252 Buildings Hs. 72.000 TL (Borrower) B) 250 Land and Lands Hs. 400.000 TL (Creditor) NS) 250 Land and Lands Hs. 400.000 TL (Borrower) D) 391 Calculated VAT Hs. 72.000 TL (Borrower) TO) 191 VAT Deductible 72.000 TL (Creditor)Question 6The following trial balance was extracted from the ledger of Juliana at 31 December2020. JulianaTrial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020 Office Equipment 8,000Receivables 198,000Payables 52,000Sales…Refer to the following data of OCT2023CPACompany: Assets to be realized 1,375,000Assets acquired 825,000 Liabilities liquidated 1,875,000Assets realized 1,200,000Liabilities not liquidated 1,700,000 Assets not realized 1,375,000Llabilities assumed 1,625,000Llabilities to be liquidated 2,250,000 Supplementary charges 3,125,000 Supplementary credits 2,800,000 Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively