QUESTION 8 Correct Mark 1.00 out of 1.00 Remove flag Edit question Selected T-account balances for Bloomfield Company are shown below as of January 31,2017; accounting adjustments have already been posted. The firm uses a calendar-year accounting period but prepares monthlyadjustments Truck Accumulated Depreciation-Truck Jan. 31 Bal. 10.200 Jan. 31 Bal. 2,040 If the truck has a useful life of five years (or 60 months), how many months has Bloomfield owned the truck? Select one: O A. 3 months B. 24 months O C. 18 months D. 12 months

QUESTION 8 Correct Mark 1.00 out of 1.00 Remove flag Edit question Selected T-account balances for Bloomfield Company are shown below as of January 31,2017; accounting adjustments have already been posted. The firm uses a calendar-year accounting period but prepares monthlyadjustments Truck Accumulated Depreciation-Truck Jan. 31 Bal. 10.200 Jan. 31 Bal. 2,040 If the truck has a useful life of five years (or 60 months), how many months has Bloomfield owned the truck? Select one: O A. 3 months B. 24 months O C. 18 months D. 12 months

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 6.31EX: Asset turnover The Home Depot reported the following data (in millions) in its recent financial...

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Brief Exercise 9-08 Pharoah Company sells office equipment on July 31, 2022, for $23,160 cash. The office equipment originally cost $78,110 and as of January 1, 2022, had accumulated depreciation of $38,300. Depreciation for the first 7 months of 2022 is $3,500.Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) Enter an account title to update depreciation to July 31 Enter a debit amount Enter a credit amount enter an account title to update depreciation to July 31 Enter a debit amount Enter a credit amount (b) Enter an account title to record the sale of the equipment Enter a debit amount Enter a…
Dd6). Required information Skip to question [The following information applies to the questions displayed below.] On January 1, Super Saver Groceries purchased store equipment for $29,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $3,500. During the 10-year period, the company expects to use the equipment for a total of 13,000 hours. Super Saver used the equipment for 1,700 hours the first year. Required:
Question 2: On July 3, 2014, Alpha Traders bought equipment at a cost price of Rs.80, 000. The estimated depreciation rate per year is 40 percent, salvage value is Rs. 17, 050 and the estimated useful life is 3 years. The business fiscal year is from January to December and for this asset, half year convention is used in the year of purchase. Instructions: - Using the Declining Balance Method, prepare a depreciation schedule for all the three useful years. Give the adjusting entry to record the depreciation expense for 2015. Prepare an Income Statement extract for the year ended December 31, 2016 and a Statement of Financial Position extract as at December 31, 2017.
Question 12 June 1, 2017 – NoDirt paid $6,000 to Ace Machine Company for a commercial floor buffing machine. The buffing machine will be depreciated over a 5 year life. . Using the information given in 12. above – select the adjusting entry Green should make prior to preparing financial statements on May 31, 2017. Prior to this May 31, 2017 adjusting entry, Green has made only two entries in their accounting system related to this advance payment – the April 1, 2017 entry to record the receipt of the $60,000 cash and the April 30, 2017 adjusting entry. account details debit credit A. Unearned Service Revenue 36,000 Service Revenue 36,000 B. Service Revenue 36,000 Unearned Service Revenue 36,000 C. Service Revenue 12,000 Unearned Service Revenue 12,000 D. Unearned Service Revenue 12,000 Service Revenue 12,000 E. None of the above .…
Exercise 4. Selected account balance before adjustments for Kiss Me Again Company on December 31, 2020 are as follows: Debit CreditAccounts Receivable P84,625Supplies 11,375Equipment 215,000Module 4 10- NABAccumulated Depreciation P34,450Wages payable 0Unearned fees 23,500Fees earned 348,975Wages expense 79,700Rent expense 48,000Depreciation Expense 0Supplies expense 0The data needed for year-end adjustments are as follows:a. Fees earned but not yet collected on December 31, P31,575.b. Supplies on hand on December 31, P2,785c. Rent expired during the year, P36,000d. Depreciation for equipment during the year, P5,000e. Wages accrued but unpaid on December 31, P13,800f. Accounts receivable of P10,000 is doubtful of being collected.Date Description PR Debit Credit
Problem 2After completing the adjusting entries but before closing the nominal accounts as of December 31, 2020, the following errors were discovered in the records of Winston Corporation:1) Depreciation computed on the building for the years 2018, 2019 and 2020 were overstated by P10,000 per year.2) Cost of the minor repair on the machinery of P1,200, made on June 30, 2019, was charged to Machinery account. Machinery balance is depreciated at an annual rate of 10%.3) Unused office supplies as of December 31, 2019 of P1,250 were overlooked. The company debits Office supplies expense upon purchase of supplies.4) 3-year insurance premium of P12,000 was paid on October 1, 2018. The amount was charged to Insurance expense account and no adjustment for the unexpired premium was taken up.BSA 2201 – Intermediate Accounting 3 LEC07C – Correction of ErrorsPage 4 of 65) Merchandise purchased on 2019 of P32,000, term: FOB shipping point, was taken up in the books when the goods were received in…
Serial Problem Business Solutions LO P1, A1 Selected ledger account balances for Business Solutions follow. For Three MonthsEnded December 31, 2019 For Three MonthsEnded March 31, 2020 Office equipment $ 8,100 $ 8,100 Accumulated depreciation—Office equipment 405 810 Computer equipment 20,000 20,000 Accumulated depreciation—Computer equipment 1,250 2,500 Total revenue 31,334 44,900 Total assets 83,360 121,668 Required:1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2020. Compute amounts for the year ended December 31, 2020, for Depreciation expense—Office equipment and for Depreciation expense—Computer equipment (assume use of the straight-line method).2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2020?3. Compute the three-month total asset turnover for Business…
1) as per information viii - the depreciation for Vehicles 25% "reducing balance", not on cost. 2) vi. Rent prepaid during the period was RM8,000 at the end of the year. Since there is prepatment for rental, why there is no prepayment reflect in statement of financial position?
Exercise 10. Adjustment for depreciation The estimated amount of depreciation on equipment for the current year is P3,000. Journalize the adjusting entry to record the depreciation.
QUESTION FOUR The following balances appeared in the general ledger of Umzinto Traders on 01 March 2012, the beginning of the financial year: R Vehicles 300 000 Accumulated depreciation on vehicles 140 000 Equipment 130 000 Accumulated depreciation on equipment 75 000 Additional information A new vehicle, cost price R160 000, was purchased on credit on 01 December 2012. Equipment with a cost price of R10 000, was sold for cash on 31 August 2012 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2012. Depreciation is calculated on equipment at 10% per annum on cost. Depreciation is calculated on vehicles at 20% per annum on the diminishing balance. Prepare the following note to the financial statements as at 28 February 2013: Property, plant and equipment
17. The following data were taken from the records of Raysut Cement Factory for the year ended December 31, 2018. Jan2. Purchased merchandise on account from Yokum Co., $60,000 terms 2/10, n/30. Feb1. Issued a 8%, 2 month, $60,000 note in payment of account. Mar31 Accrued interest for 2 months on Yokum note. Apr1 Paid face value and interest on Yokum note. July1 Purchased Furnituret from Korsak Equipment paying $22,000 in cash and signing a 9%, 3 months, $80,000 note. Sept.30 Accrued interest for 2 months on Korsak note. Oct.1 Paid face value and interest on Korsak note. Dec.1 Borrowed $48,000 from the Otagon Bank by issuing a 3 month, 7% interest- bearing note with a face value of $48,000 Dec. 31 Recognized interest expense for 1 month on Otago Bank note. Instructions: a) Prepare journal entries for the above transactions and events. b) Show the Balance Sheet presentation of notes and interest payable at December 31.
17. The following data were taken from the records of Raysut Cement Factory for the year ended December 31, 2018. Jan2. Purchased merchandise on account from Yokum Co., $60,000 terms 2/10, n/30. Feb1. Issued a 8%, 2 month, $60,000 note in payment of account. Mar31 Accrued interest for 2 months on Yokum note. Apr1 Paid face value and interest on Yokum note. July1 Purchased Furnituret from Korsak Equipment paying $22,000 in cash and signing a 9%, 3 months, $80,000 note. Sept.30 Accrued interest for 2 months on Korsak note. Oct.1 Paid face value and interest on Korsak note. Dec.1 Borrowed $48,000 from the Otagon Bank by issuing a 3 month, 7% interest- bearing note with a face value of $48,000 Dec. 31 Recognized interest expense for 1 month on Otago Bank note. Instructions: Prepare journal entries for the above transactions and events. Show the Balance Sheet presentation of notes and interest payable at December 31.