Question Content Area
Q: 6. Dracaris Inc. purchased an investment and expected to earn: Year Net Cash Flows Php250 Php300 1 3…
A: Net present value- Net present value (NPV) is the distinction among the current value of cash…
Q: 13. The mid-month convention applies to... a. assets purchased during the last 3 months whose…
A: The mid-month convention is a convention that is used for the calculation of depreciation. the…
Q: Thomas C. Company holds a 15% equity investment in Kayak Zone and treats to its stockholders. How…
A: An associate company is a company that holds a minimum of 20% of shares in another company. If the…
Q: ACC 3200 – Practice Final 1. Salisbury Corporation has been producing and selling 30,000 caps a…
A: Introduction:- The following basic information as follows under:- Gilbert Company has contacted…
Q: Payroll Register and Payroll Journal Entry Mary Losch operates a travel agency called Mary’s Luxury…
A: Payroll Expenses It is important to prepare the payroll expenses which are paid to the employees who…
Q: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted…
A: Sales show the revenue of the company which includes the credit sales and cash sales. Credit sales…
Q: Equipment with an estimated market value of $29,889 is offered for sale at $48,377. The equipment is…
A: As per IAS 16, Property plant and Equipment Cost of equipment will be its purchase price which can…
Q: Prepare a Classified Balance Sheet
A: Balance sheet is one of the financial statement which shows all assets, liabilties and equity of the…
Q: Horizontal Analysis of financial statements specifically looks at the increases and decreases in the…
A: Horizontal analysis is used in financial statement analysis to compare historical data, such as…
Q: Khalid Co. sold two machines in 2015. The following information pertains to the two machines:…
A: Assumption: The Year ending date is December 31 Depreciation Expense (SLM) = (Cost - Salvage…
Q: n early 2021, Amina Corp. had balances in account receivables of BD 125,000 and allowance for…
A: The net realizable value for account receivables is calculated as difference between gross account…
Q: Define and explain the cost management information system's two major subsystems.
A: The Cost Accounting Information System (CAIS) is a financial accounting system that computes and…
Q: Question 10 In the preparation of the worksheet of a merchandising business, the ending balance of…
A: Income Statement - This statement shows the income earned and loss incurred by the organization in…
Q: or single periodic rental in an instalment sale or finance lease of personal property assuming a…
A: The following is the remedy available::: a.Exact fulfilment of the obligation with right to recovery…
Q: As. Ann Chavez, the owner of the business, transferred cash rom personal bank account to the account…
A: The closing entries are prepared to close the temporary accounts of the business. The temporary…
Q: FINANCIAL STATEMENT ANALYSIS FINANCIAL INFORMATION *USE THE DATA BELOW FOR THE CREATION OF…
A: Horizontal analysis: It is utilized in the review of an organization's company's financial…
Q: Operating data for Blue Spruce Corp. are presented as follows. 2022 2021 Sales revenue $834,000…
A: Vertical analysis is one of the form of financial statement analysis under which each item is being…
Q: DIScussion Board #12 What are the primary reasons for a stock split and for treasury stocks?
A: Stock Splits means when one share of the company is being broken into multiple shares which will…
Q: You are a Tax Director in the following situations: a) A client of the firm has enquired about how…
A: The Tax Director manages and oversees an organization's tax policies and objectives. Monitors…
Q: Using the weighted-average method, compute the equivalent units of production if the beginning…
A: The term equivalent units are defined as how much amount of work has been completed on certain or…
Q: pales Jariable expenses
A: In this question, we have to find out the return on assets. ROA is a financial ratio that tells us…
Q: One of the companies purchased a set of fixed assets for an amount of 12 million dinars in cash. The…
A: Proof required of purchase of the above assets are : Invoice / receipt : It is a document which…
Q: 5. Which of the following remedies available to the seller for the breach of contract of sale…
A: The remedies for breach of contract: Amount of damage, causes of action, cancellation, and…
Q: b. Copy and paste that one formula to all the relevant cells in your new sheet. Round your answers…
A: Common size financial statement analysis is one of the analysis done on financial statements in the…
Q: The following information refers to Questions No. 13 through 15: The financial manager of Apple Co.…
A:
Q: The inventory of Marshall's Merchandise Company was destroyed by fire on June 1. From an ex-…
A: Income Statement - This statement shows the income earned and loss incurred by the organization in…
Q: 2.)Willie Company's retained earnings increased S33,000 during 2014. What was Willie's 2014 net…
A: Introduction: Retained Earnings : Retained Earnings are Shareholder funds. Part of profit is…
Q: At a rate of 9%, what is the present value of the following cash flow stream? $0 at Time 0; $1,000…
A: Introduction:- Present value is the current value of the future sum of money, at a specified rate of…
Q: The market price of a stock is $35.00. An investor has purchased a call option for 100 shares of…
A: Here,Intrinsic value means value of option taken. For call option,interinsic value=maximum of…
Q: 10. David Debit has performed 5700 of accounting services for a client but has not yet billed the…
A: Introduction: Journals: Each and every business transactions are to be recorded in Journals.…
Q: which of the following is necessary to solve a discount problem? a.future amount b.interest…
A: In a discounting problem, the present value of future cash flow is calculated. In order to…
Q: residence
A: As per the given information Seiji changed his own house to a rental property in 2021,. He paid…
Q: What are analytical procedures, and why are they a useful audit tool?
A: Analytical procedures are those procedures that are used as a substantive test to obtain evidence…
Q: Stein and his son owned a television appliance store. However there were having severe financial…
A: ANSWER The case has conflicting a line of business, conflict of inters, torts of negligence and…
Q: Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes…
A: Budget is the estimation made for future period. For example, direct material budget, direct labour…
Q: Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: Equivalent Units of Conversion Costs The Filling Department of Ivy Cosmetics Company had 8,500…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: 1- Prepare a Manufacturing account for the year ended 31 December 2017 2- Prepare a Trading account…
A: Manufacturing account shows total costs which are incurred directly for production and manufacturing…
Q: The accountant of Jonathan Manufacturing Company was tasked to perform monthly bank reconciliation.…
A: Ideally cash balance as per cashbook and bank balance as per bank statement must reconcile with each…
Q: Fugazi City College sold season tickets for the 2015 football season for $240,000. A total of 8…
A: Introduction: Journals: Each and every business transactions are to be recorded in journals. Another…
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Formula: Discount amount = Invoice amount x Discount rate
Q: ease answer parts 6 and 7
A: The total cost of production of a good comprises the total fixed cost of production and the total…
Q: one of the criticism of the positive ac
A: Positive accounting theory makes an attempt to make the predictions that are good for the company…
Q: The following information is provided regarding a company's pension plan: Service cost $640,000…
A: Interest on projected benefit obligation = Projected benefit obligation, Jan. 1 × Interest cost =…
Q: Which of the following results in an increase in the Equity in the Investee Income acct. when…
A: Equity of the investor means the amount that is invested by the investor in the company. Equity…
Q: Marigold Corp. wants to sell a sufficient quantity of products to earn a profit of $100000. If the…
A: Formula: Units sell to earn desired profit = (Fixed costs + Desired income) /contribution margin…
Q: Balance of Interest Expens
A: In this question, we have given a trial balance and we have to find out the interest Expense amount…
Q: b) Compute free cash flow.
A: Cash flows statement is one of the financial statement of the business which shows all cash inflows…
Q: What is the reason for renewed interest in not-for-profits corporations?
A: Non-profit corporation owners do not make a profit. The money of a not-for-profit organisation is…
Q: Complete the investment chart based on the facts given for each situation. Assume each person is…
A: Here discuss about the details of share of annual income to retirement benefit plan either for…
-
Question Content Area
Rhonda Company reported $70,000 of net income for 2020. During the year, machinery costing $10,000 and with accumulated
depreciation of $8,000 was sold at a loss of $500. Land and machinery were purchased during the year for cash. Selected account information follows:2020 December 31 January 1 Land $45,000 $32,000 Machinery 28,000 20,000 Accumulated Depreciation: Machinery 7,000 12,000 Required:
Compute the net cash from investing activities for 2020 using the visual inspection method. Use the minus sign to indicatecash out flow.
$fill in the blank 1
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of 20,000. Required: Compute the depreciation expense for 2019 under each of the following methods: 1. straight-line 2. sum-of-the-years-digits 3. double-declining-balance 4. Next Level What effect does the depreciation of the equipment have on the analysis of rate of return?Investing Activities and Depreciable Assets Verlando Company had the following account balances and information available for 2019: During 2019, Verlando recorded the following transactions affecting these accounts: a. Land with a carrying value of 35,000 was sold at a loss of 6,000. b. Land and equipment were purchased with cash during the period. c. Equipment with an original cost of 20,000 that had a book value of 4,000 was written off as obsolete. d. A building with an original cost of 60,000 and accumulated depreciation of 25,000 was sold at a 23,000 gain. e. Depreciation expense and amortization expense were recorded. f. Net income for the year was 60,000. g. A patent was acquired during the year in exchange for 1,200 shares of common stock with a par value of 1 per share and a market value of 26 per share. h. Additional marketable securities wefe purchased during the year. i. Verlando Company has no notes payable in the liabilities section of its balance sheet. Required: 1. Next Level Assuming that Verlando uses the indirect method to determine operating cash flows, what is the amount of depreciation expense and amortization expense that would be added back to net income: 2. Prepare the investing activities section of the statement of cash flows for the year ended December 31, 2019. 3. Prepare the disclosure for significant noncash transactions for the statement of cash flows for the year ended December 31, 2019.Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019. Each asset has an expected residual value of 1,000. The depreciation expense for 2019 and 2020 is shown below for three assets: Required: 1. Next Level Which depreciation method is the company using for each asset? 2. Compute the depreciation expense for 2021 and 2022 for each asset.
- Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2018, Bloomer discovered that the machine would not be useful beyond December 31, 2021, and estimated its value at that time to be $2,000. Required Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2016 to 2021. Was the depreciation recorded wrong in 2016 and 2017? If so, why was it not corrected?Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.Vorst depreciates Asset A on the double-declining-balance method. How much depreciation expense should Vorst record in 2020 for Asset A? a. 32,000 b. 25,600 c. 14,400 d. 6,400
- Revision of Depreciation On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was expected to have a residual value of $12,000 at the end of its 5-year useful life. On January 1, 2019, Blizzards-R-Us concluded that the machine would have a remaining useful life of 6 years with a residual value of $3,600. Required: 1. Determine the revised annual depreciation expense for 2019 using the straight-line method. 2. CONCEPTUAL CONNECTION How does the revision in depreciation affect the Blizzards-R-Us financial statements?Depreciation Methods On January 1, 2019, Loeffler Company acquired a machine at a cost of $200,000. Loeffler estimates that it will use the machine for 4 years or 8,000 machine hours. It estimates that after 4 years the machine can be sold for $20,000. Loeffler uses the machine for 2,100 and 1,800 machine hours in 2019 and 2020, respectively. Required: Compute depreciation expense for 2019 and 2020 using the (1) straight-line, (2) double-declining-balance, and (3) units-of-production methods of depreciation.Cost of Asset and Depreciation Method Heist Company purchased a machine on January 2, 2019, and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of 5,000. The following costs relate to the acquisition and use of the machine during the first year of its operations: Required: 1. Compute the depreciation expense for 2019 and 2020. 2. Next Level What is the effect on the financial statements if the company used the straight-line method instead of the 150%-declining-balance method?