What would the journal entry to record the sale of the truck include?
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A: When the asset is sold at a price higher than its book value, it is said to be sold at a profit.
Q: Martinez owns machinery that cost $87,000 with accumulated depreciation of $40,000. The company…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Martinez owns machinery that cost $87,000 with accumulated depreciation of $40,000. The company…
A: Book value of asset = Cost of asset - Accumulated depreciation Book value of asset = $87,000 -…
Q: On August 1, Gold Company exchanged a machine for a similar machine owned by Cowboy Company and also…
A: a. Date Account Titles Debit Credit Machine (new) $53,000 Accumulated depreciation…
Q: Tommy's Trucks Co. traded in a used truck for a new one. The original cost of the old truck was…
A: Calculation of cost of acquire a new truck and cost of disposal are as follows.
Q: Mirabel Company has an old equipment that cost P700,000 with an accumulated depreciation of…
A: In case of exchange of equipments having commercial substance, equipment sold and equipment acquired…
Q: Carolina Co. purchased a machine at a cost of $780,000 on January 1, 2016. On January 1, 2021, the…
A: Answer : Transaction has commercial Substance DATE PARTICULAR DEBIT CREDIT Jan 1,…
Q: McKnight depreciated the shelving on a double-declining-balance basis, with $1,500 estimated…
A: Account Title and Explanation Debit Credit Depreciation expense $ Accumulated…
Q: Muaj & Company owns a machine that cost Tk. 200,000 when purchased on July 1, 2018. It has been…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: 2. Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny…
A: 1. Goodwill=Purchase consideration-Net assets=$400,000-$390,000=$10,000
Q: Scheuller Company had machinery that had originally cost $246,000. The machinery was three years old…
A: Double-declining balance method (Accelerated method): In this method of depreciation, the…
Q: Chicken Wings Company purchased a copier for P447,150 on January 1, 2021. The estimated useful life…
A: Since the change in useful life is a change in accounting estimate the effect will be given…
Q: Garcia Co. owns equipment that costs $78,300, with accumulated depreciation of $40,800. Garcia sells…
A: 1. Cost of Equipment= 78300 2. Accumulated Depreciation on equipment= 40800 3. Book value of…
Q: Funseth Farms Inc. purchased a tractor in 2018 at a cost of $30,000. The tractor was sold for $3,000…
A: 1. Date Account Titles and Explanation Debit Credit 2021 Cash $3,000…
Q: Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare…
A: Journal entries are prepared to record the financial and non-financial transactions of the business…
Q: Beckworth Company purchased a truck on January 1, 2018, at a cash cost of £58600. The estimated…
A: Depreciation can be defined as the non-cash expense that is recorded on the expense side of the…
Q: On Dec. 31, 2021 Sweets Inc. sold an old delivery truck to a local farmer for $ 5,000 The following…
A: Purchase of Capital Assets It is important for the firm to purchases the capital assets which are…
Q: Rexford Company purchased a machine on January 1, 2017, for $57,600 cash. The machine has an…
A: Formula used: Depreciation rate = ( 100 / Useful life years ) x 2
Q: 020, Staged Home Ltd. completed the following transactions involving delivery trucks: July 5…
A: The journal entries are prepared to record day to day transactions of the business on regular basis.
Q: Good Dairy sold a delivery truck for cash of $6,400. The original cost of the truck was $26,000, and…
A: Carrying value of truck at the time of sale = sales value + loss on sales = $6400 + $4000 = $10,400…
Q: On January 1, 2020, Techno Company sold a machine for RO15,000 cash. The Machine originally cost RO…
A: Solution:- Preparation of Journal entry as follows under:-
Q: Haemul Pajeon Company purchased a machine on January 2, 2018 for $500,000. The machine has an…
A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: Gaston owns equipment that cost $27,500 with accumulated depreciation of $22,000. Gaston sells the…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Romanova Inc. decides to sell an old piece of equipment and receives $5,000 cash for it. The…
A: Net book value of equipment = Original cost - Accumulated depreciation = $50,000 - $47,000 = $3,000
Q: During the first two years, Supplies, Inc. drove the company truck 15,000 and 22,000 miles,…
A: Depreciation per mile (activity-based method) = (Cost of the assets - Salvage value) / Life of the…
Q: Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells…
A: Gain (Loss) on Sale of Equipment = Sale Consideration - (Cost - Accumulated Depreciation)
Q: Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare…
A: Accumulated depreciation: The total amount of depreciation expense deducted, from the time asset…
Q: e) 11,200 Accumulated Depreciation-old melter (straight-line) 6,300 Secondhand fair value of old…
A: Depreciation is a term used in accounting to describe a method of allocating the cost of a tangible…
Q: Rexford Company purchased a machine on January 1, 2017, for $57,600 cash. The machine has an…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Which method is favorable for tax advantage and explain through calculation?
A: Given that: Cost of Truck = $75,000 Residual value = $6000 Life = 5 years
Q: Diaz Company owns a machine that cost $126,600 and has accumulated depreciation of $94,200, Prepare…
A: Req-1 General Journal Debit Credit Accumulated Depreciation $94,200 Loss on…
Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse…
A: Here discuss about the topic of Amount Realized on the sale of assets and any kind of amount…
Q: On April 1, 2022 Brazil Company purchased and installed several furniture and fixtures items from a…
A: Double Declining Balance Method: In commercial accounting, the double-declining balance (DDB)…
Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $300,000 and…
A: Recorded value of new Truck = Fair value of the new Truck received where, Fair value of the new…
Q: Diaz Company owns a machine that cost $125,400 and has accumulated depreciation of $92,500. Prepare…
A: Answer 1) Date General Journal Debit Credit Jan'1 Cash $ 16,300…
Q: Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of…
A: Solution: Book value of old sailboat = Cost - Accumulated depreciation = $210,000 - $105,000 =…
Q: Diaz Company owns a machine that cost $125,500 and has accumulated depreciation of $93,000. Prepare…
A: To calculate the gain or loss on selling machine use the below formula Gain/ (Loss) on disposal…
Q: Gain on Disposal
A: Concept of Cost Accounting
Q: The BAKAL Company purchased a machine on November 1, 2011, for P148,000. At the time of…
A: Straight line method of Depreciation The purpose calculating the depreciation is to identified the…
Q: On January 1, 2012, AB Ltd buys a truck for $42,000 cash. It has estimated residualvalue of $2,000,…
A: As given, Original cost of truck $42,000 Residual Value $2,000 Life of truck in years 4 Years…
Q: Jet Co. purchased a machine on 1 July 2017 at a cost of OMR51,000. The machine had an estimated…
A: Depreciation is the decrease in value of an asset due to various causes like wear and tear,…
Q: On December 29, Patel Products, Inc., sells a delivery van that cost $20,000. After recording the…
A: When a depreciable asset is sold, then gain or loss on sale of asset is to be calculated by…
Q: What should be the journal entry to record the disposal of the equipment?
A: As per IAS 39 ( Financial Instruments - Recognition and Measurement ) Financial assets has to be…
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: Sony Company has decided to sell one of its old machines on December 31, 2019. The machine was…
A: The gain or loss is calculated as the difference between sale value and book value of the assets.
Q: William, Inc., purchased a truck to use for deliveries and is attempting to determine how much…
A: Depreciable cost=Value of truck-Salvage value=75,000-6,000=69,000
Q: Amanda Company purchased a computer that cost $11,200. It had an estimated useful life of five years…
A: Answer:- Depreciation meaning:- A reduction in the worth of an asset is generally referred to as…
Q: Baltika plc purchased a van on 1 November 2020 for a total cost of £28,000 by paying £21,500 cash…
A: The profit or loss on disposal of assets is calculated as difference between book value and sale…
Dynasty Corp sold a truck for $15,000 cash. It was originally purchased for $50,000 and had
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- Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny Side had net assets worth $390,000. A. What is the amount of goodwill in this transaction? B. What is Farm Fresh Agriculture Companys journal entry to record the purchase of Sunny Side Egg Distribution? C. What journal entry should Farm Fresh Agriculture Company write when the company tests for impairment and determines that goodwill is worth $1,000 in the year following the purchase of Sunny Side?Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for 1,500 each. The company uses group depreciation on a straight-line basis. Required: 1. Prepare journal entries to record the acquisition and the first years depreciation expense. 2. If one of the cars is sold at the beginning of the second year for 7,000, what journal entry is required?
- Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth $4,500,000. A. What is the amount of goodwill in this transaction? B. What is Buchanans journal entry to record the purchase of McLaren? C. What journal entry should Buchanan write when the company internally generates additional goodwill in the year following the purchase of McLaren?Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for 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.
- Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.
- Prepare journal entries for the following transactions: a. A machine with a cost of 10,000 and accumulated depreciation of 8,000 was sold for 2,500. b. A machine with a cost of 10,000 and accumulated depreciation of 8,000 was traded for a new machine with a market value of 12,000. Cash of 9,500 was also paid.Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an agreement to sell the land for $375,000. In accordance with the sales agreenwnt, the buyer transferred $375,000 to Capstone’s bank account on February 20. How would elements of the accounting equation be affected by the sale?Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.
