Straight-L Depreciat $205,00 205,00
Q: Vegas Company has the following unit costs: Variable manufacturing overhead $ 20 Direct materials 25…
A: The contribution margin is calculated as difference between sales revenue and variable cost.
Q: Kapoor Bhd issued 4 percent debentures with a nominal value of RM40,000,000 on 1 January x1. The…
A: Debenture- A debenture is a marketable security (a type of investment) issued by a company or other…
Q: + 10 Primary income (investment income earned abroad) 72 Imports of goods and services 98 Augusta…
A: Capital account indicates a country's balance of payments. Over the course of a year, the capital…
Q: Patent cost is $ 18000 , life of itis 18 years, calculat the first year amortization expense.
A: Formula: Amortization expense = Asset value / Useful life years
Q: The Reading states that in a takeover bid, management is permitted to take defensive action provided…
A: The question is related to the effects on the company in case of a takeover Bid. Generally, the…
Q: On 1 January 2022, Ms. Suraya opened the Bestari Bookstore with a cash capital of RM50,000 and…
A: A cash budget is an estimation of cash inflows and outflows into and from an entity during a…
Q: The following lots of Commodity Z were available for sale during the year. Beginning inventory 10…
A: Introduction: LIFO: LIFO stands for Last in First out. Which means last received inventory to be…
Q: DEBIT CREDIT 1.Equipment Capital 1. The owner invests equipment in the business. 2. The company…
A: Introduction: Each and every business transactions affects the minimum two Accounts. One is debit…
Q: [The following information applies to the questions displayed below.] On January 1, Year 1, the…
A: Particulars Debit Credit Cash 27500 Accounts Receivable 15400 Allowance for Uncollectible…
Q: The accountant for Polo's Pet Shop prepared the following list of account balances from the entity's…
A: Statement of owners equity is an essential part of financial statements. It indicates the investment…
Q: The annual report for Malibu Beachwear reported the following transactions affecting stockholders’…
A: Stockholders' equity, also known as owners' and owners' equity, is the amount of assets available to…
Q: Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a…
A: Lets understand the basics. Cost driver is a driver which is used to allocate the cost to product or…
Q: Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are…
A: Formula used: Profit margin=Net incomeNet sales×100 Asset turnover=Net salesAverage total assets…
Q: NIV JAIN 19. Which of the following situations would cause overheads to be over-absorbed? O A. When…
A: The company has to make several estimates in respect of the cost. When a company conducts its…
Q: Prepare adjusting entry for October 31. Show computation. A bank loan amounting to P100,000 was…
A: Formula used: Interest amount = Loan amount x Interest rate
Q: Expo Lube is interested in producing and selling an industrial line of oil filters. Market research…
A: Profit = sales - cost Cost = sales - profit Target cost = Selling price - (Profit % * Selling…
Q: Quirk Corporation issued a 100% stock dividend of its common stock which had a par value of $10…
A: Since the shares have been issued a dividend which is::100% of par value.. The amount to be…
Q: In 2021 an investor sold capital property for $80,000. The cost base of the property was $55,000.…
A: A capital gain is the increase in the value of a financial instrument when it is sold. A capital…
Q: Crusty Enterprise Trial Balance as at Dec 31, 2020 did not balance as the debit side is greater than…
A: The suspense account is created to record the error (Omission) in trial balance and make the trial…
Q: The following transactions and adjusting entries were completed by Robinson Furniture Co. during a…
A: 1. Journal Entries - Journal Entries are the made to record transactions. Journal Entries are…
Q: Accounting 29-5. Which of the following is the most appropriate asset for Colleen to give to her…
A: An IRA is a saving for the purpose of retirement which ultimately gives tax benefits.
Q: Monaco manufacturing corp has the following account balances per ledger for the period ending…
A: The question is related to Cost Sheet for the year ended December 31st, 2019. The Cost Sheet or…
Q: Question 3 Phi Phi Furniture produced 1,500 television stands in March. These stands are sold for…
A: Total Conversion Cost=Direct Labor+Total Manufacturing Overhead
Q: Betsy Strand's regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in…
A: Journal entries show the recording of transactions during the accounting year and every transaction…
Q: The bank reconciliation shows the following adjustments: Deposits in transit: $862 Notes receivable…
A: Bank reconciliation (BRS): BRS is drawn up by the business to verify the cash book balance as per…
Q: During the month of March 2022, Turaco sole trader purchased goods to the value of N$12 000, of…
A: The gross profit is calculated as difference between sales and cost of goods sold.
Q: r 31, 2019 consolidated Statement of financial position. Using the same information, determine the…
A: As per the given information in the above question we must determine the carrying amount of the…
Q: week) as he wan ked > 40/week
A: Budget line C=17 h for h≤401.517h-40for 40≤h≤60217h-60for h≤60
Q: Unleaded Inc. issued a ₱300,000 face value bonds. It carries 10% annual interest rate to be repaid…
A: Formulas: Premium on Bonds Payable = Issue value of the bonds - face value of the bonds Interest…
Q: The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $57,000,…
A: Present value is the current worth of future cash flows by taking into account the required rate.…
Q: In a process costing system, costs incurred in one department remain there rather than being…
A: Lets understand the basics. Process costing is as name suggest useful when there is multiple uniform…
Q: amount of the inventory that S Company purchased from P Company in the December 31, 2019…
A: As per the given information in the above question we must determine the carrying amount of the…
Q: 1.How is cost recovery properly assessed that will account for tax benefit?
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Use the following to answer questions 23 - 26 J.T Corporation was organized on January 3, 20XE. The…
A: The additional paid in capital is the excess value of capital received from shareholders as compared…
Q: Question 5: Identify each item as describing Form 941, Form 940, or both. A. Includes a voucher that…
A: Form 940 and Form 941 are both federal taxation forms for employment. Form 940 is filled annually…
Q: Patent cost is $ 18000 , life of it is 18 years, calculat the first year amortízation expense.
A: Formula used: Amortization expense per year = Patent cost / Useful life
Q: Question 25: Which statement regarding Form W-3 is inaccurate? Answer: A. Form W-3 contains earnings…
A: Correct option is (C) Form W-3 is submitted to social security administration and provided to each…
Q: .The effect on profit if production of P is reduced to 500 units (to be sold at P12 each)…
A: The cost profit volume analysis is the analysis which is made by the company by changing the values…
Q: If a firm uses a conservative financial plan, It will usually have marketable securities at the…
A: Conservative investment prefers to conserve one's purchasing power of capital with a small amount of…
Q: In reconciling the Cash in Bank of Inner Company with the bank statement balance for the month of…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: uring 2019, S sold merc
A: Introduction Minority interest means ownership or interest of less then 50% of an enterprise. The…
Q: Hepworth Company has implemented a JIT system and is considering the use of backflush costing.…
A: Frequent items that can be reported in journal entries include depreciation and bond amortization.…
Q: A city needs a new pedestrian bridge over a local stream. The city uses an interest rate of 5%, and…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Q: ing these mechanisms at full capacity are as follows. Variable costs per unit:…
A: Introduction : Incremental cost means the variable cost which increases with the increase in the…
Q: On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill…
A:
Q: Buying assets to expand a business is classed as which activity in the statement of cash flows?…
A: Cash Flow Statement: A cash flow statement is a financial statement that summaries all of the cash…
Q: Nike uses a job order cost system and applies factory overhead to production orders on the basis of…
A: Total manufacturing cost indicates the sum of the direct and indirect costs related to the…
Q: Georgio owns a 20 percent profits and capital interest in Rain Tree LLC. For the current year, Rain…
A: Regular income is defined as any sort of income earned by a business or individual that is taxed at…
Q: out 15% of his merchandise for cash of sales account 65% are expected to be collected in the month…
A: Cash Budget Cash Budget is the estimations of the cash inflows and outflows during a specific…
Q: Required Information Problem 7-42 (LO 7-2) (Algo) [The following information applies to the…
A: Capital gain is the increase in the value of asset and is realized when it is sold. The minimization…
Step by step
Solved in 3 steps with 1 images
- On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.During 2019, White Company determined that machinery previously depreciated over a 7-year life had a total estimated useful life of only 5 years. An accounting change was made in 2019 to reflect the change in estimate. If the change had been made in 2018, accumulated depreciation at December 31, 2018, would have been 1,600,000 instead of 1,200,000. As a result of this change, the 2019 depreciation expense was 100,000 greater than it would have been if no change were made. Ignoring income tax considerations, what is the proper amount of the adjustment to Whites January 1, 2019, balance of retained earnings? a. 0 b. 100,000 c. 280,000 d. 400,000On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
- 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?Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.
- At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.
- On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.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?Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar Corporation purchased a machine for 50,000. Lapar paid shipping expenses of 500, as well as installation costs of 1,200. The company estimated that the machine would have a useful life of 10 years and a residual value of 3,000. On January 1, 2020, Lapar made additions costing 3,600 to the machine in order to comply with pollution-control ordinances. These additions neither prolonged the life of the machine nor increased the residual value. Required: 1. If Lapar records depreciation expense under the straight-line method, how much is the depreciation expense for 2020? 2. Assume Lapar determines the machine has three significant components as shown below. If Lapar uses IFRS, what is the amount of depreciation expense that would be recorded?