College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 4SEB
1.
To determine
Journalize the addition of second mower deck to the Tractor A.
2.
To determine
Journalize the replacement of the engine in Mower D.
3.
To determine
Prepare journal entry for the payment of repairs expense.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Explain how you would decide whether to record each of the following expenditures as an asset or an expense.Assume all items are material.(a) Legal fees paid in connection with the purchase of land are $1,500.(b) Eduardo, Inc. paves the driveway leading to the office building at a cost of $21,000.(c) A meat market purchases a meat-grinding machine at a cost of $3,500.(d) On June 30, Monroe and Meno, medical doctors, pay 6 months’ office rent to cover the month of July and the next5 months.(e) Smith’s Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the business.(f) Alvarez’s Florists pays wages of $2,100 for the month to an employee who serves as driver of their delivery truck.
Mabel Wong began a professional practice as system analyst on July 1. She plans to prepare monthlyfinancial statements. During July the owner completed these transactions:
July 1. Owner invested P50,000 cash along with furniture and fixtures that had a P20,000 market value twoyears ago but now worth P10,000 only
July 2. Paid P25,000 cash for July rent (including P500 water bill of a fully furnished office space at the MadrigalBuilding
July 4. Purchased P120,000 worth of state of the art equipment on credit for thirty monthly installmentpayments
6 Purchased office supplies for cash, P2,500
8 Completed work for a client and immediately collected the P32,000 cash earned
10 Completed work for a client and sent a bill for P27,000 to be paid within thirty days
15 Paid an assistant P6,200 cash as wages for 15 days
18 Collected P15,000 cash on the amount owed by the client
25 Completed work for another client who paid only P40,000 or 40% of the total computerized system.…
For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred.A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year.B. A company divides its income statements into four quarters for the year.C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000.D. Brandys Flower Shop is forecasting its balance sheet for the next five years.E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns.F. A company records the expenses incurred to generate the revenues reported.
Chapter 18 Solutions
College Accounting, Chapters 1-27
Ch. 18 - Prob. 1TFCh. 18 - Prob. 2TFCh. 18 - Depreciation is a process of asset valuation; that...Ch. 18 - The straight-line method of depreciation allocates...Ch. 18 - Prob. 5TFCh. 18 - Prob. 1MCCh. 18 - Prob. 2MCCh. 18 - Prob. 3MCCh. 18 - Prob. 4MCCh. 18 - Prob. 5MC
Ch. 18 - The following costs were incurred to purchase a...Ch. 18 - Prob. 2CECh. 18 - A machine costing 350,000 has a salvage value of...Ch. 18 - Grandorf Company replaced the engine in a truck...Ch. 18 - Prepare journal entries for the following...Ch. 18 - Prob. 6CECh. 18 - Prob. 7CECh. 18 - Prob. 1RQCh. 18 - Prob. 2RQCh. 18 - Prob. 3RQCh. 18 - What is meant by the depreciable cost of a plant...Ch. 18 - Prob. 5RQCh. 18 - Prob. 6RQCh. 18 - Prob. 7RQCh. 18 - For assets acquired after 1986, but before...Ch. 18 - Prob. 9RQCh. 18 - Prob. 10RQCh. 18 - Prob. 11RQCh. 18 - Prob. 12RQCh. 18 - Prob. 13RQCh. 18 - Prob. 14RQCh. 18 - Prob. 15RQCh. 18 - Prob. 16RQCh. 18 - Prob. 17RQCh. 18 - Prob. 18RQCh. 18 - Prob. 19RQCh. 18 - Prob. 20RQCh. 18 - Prob. 21RQCh. 18 - Prob. 22RQCh. 18 - Prob. 23RQCh. 18 - Prob. 1SEACh. 18 - STRAIGHT-LINE, DECLINING-BALANCE, AND...Ch. 18 - UNITS-OF-PRODUCTION METHOD The truck purchased in...Ch. 18 - Prob. 4SEACh. 18 - JOURNAL ENTRIES: DISPOSITION OF PLANT ASSETS...Ch. 18 - Prob. 6SEACh. 18 - STRAIGHT-LINE, DECLINING-BALANCE,...Ch. 18 - UNITS-OF-PRODUCTION METHOD A machine is purchased...Ch. 18 - CALCULATING AND JOURNALIZING DEPRECIATION...Ch. 18 - IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE...Ch. 18 - DISPOSITION OF ASSETS: JOURNALIZING Mitchell Parts...Ch. 18 - DEPLETION: CALCULATING AND JOURNALIZING Mineral...Ch. 18 - INTANGIBLE LONG-TERM ASSETS Track Town Co. had the...Ch. 18 - Prob. 1SEBCh. 18 - STRAIGHT-LINE, DECLINING-BALANCE, AND...Ch. 18 - Prob. 3SEBCh. 18 - Prob. 4SEBCh. 18 - JOURNAL ENTRIES: DISPOSITION OF PLANT ASSETS...Ch. 18 - Prob. 6SEBCh. 18 - STRAIGHT-LINE, DECLINING-BALANCE,...Ch. 18 - UNITS-OF-PRODUCTION METHOD A machine is purchased...Ch. 18 - CALCULATING AND JOURNALIZING DEPRECIATION...Ch. 18 - IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE...Ch. 18 - DISPOSITION OF ASSETS: JOURNALIZING Mayer Delivery...Ch. 18 - DEPLETION: CALCULATING AND JOURNALIZING Mining...Ch. 18 - Prob. 13SPBCh. 18 - Prob. 1MYWCh. 18 - Creative Solutions purchased a patent from Russell...Ch. 18 - On April 1, 20-3, Kwik Kopy Printing purchased a...Ch. 18 - Prob. 1CP
Knowledge Booster
Similar questions
- For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. B. A company divides its income statements into four quarters for the year. C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. D. Brandys Flower Shop is forecasting its balance sheet for the next five years. E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. F. A company records the expenses incurred to generate the revenues reported.arrow_forwardOn January 2, Dixie, Incorporated, pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000.arrow_forwardFor each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A landscaper received a customer’s order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. A company divides its income statements into four quarters for the year. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. Brandy’s Flower Shop is forecasting its balance sheet for the next five years.arrow_forward
- DigiCom repairs laptops. Using the format provided below, show the effects of the activities listed in (a) through (i). (Enter all amounts as positive values.) Stacey Comeau, owner of DigiCom, invested cash of $29,000 into her business. DigiCom paid $4,000 to cover rent for the current month. DigiCom purchased supplies on credit; $1,550. DigiCom completed work for a client on credit; $4,900. DigiCom purchased a new piece of equipment by paying cash of $2,700. DigiCom hired a technician, to start next month, who will get paid $6,500 per month. DigiCom paid for the supplies purchased in (c). DigiCom performed work for a client and received cash of $4,900. DigiCom paid the administrative assistant’s salary of $4,200. i want balance sheet answerarrow_forwardRoben Cruse opened the Campus Laundromat on September 1, 2020. During the first month ofoperations, the following transactions occurred. Sept.1 Roben invested $20,000 cash in the business.2 The company paid $1,000 cash for store rent for September.3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month,12% note payable.4 Paid $1,200 for a one-year accident insurance policy.10 Received a bill from the Daily News for online advertising of the opening of the laundromat $200.20 Roben withdrew $700 cash for personal use.30 The company determined that cash receipts for laundry services for the month were $6,200. Instructionsa. Journalize the September transactions.b. Open ledger accounts and post the September transactions.c. Prepare a trial balance at September 30, 2020.arrow_forwardIT IS URGENT Sharon Samson starts a plumbing service called Reliable Waterworks. Selected transactions are described as follows: A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution. B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs. C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account. D) Reliable pays $600 rent for the first month. E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future. F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash. G) Sharon takes a cash withdrawal of $2,500. After all of the transactions, what is the amount of total liabilities? A)15,000 B)4,000 C)19,000 D)4.400arrow_forward
- On March 4, Tonkawa Law asks Green Lawn Services for basic lawn maintenance totaling $200. Green Lawn provides maintenance on March 8, and Tonkawa pays for the lawn maintenance on March 12. Using cash-basis accounting, on which date should Tonkawa record an increase in accounts payable? Multiple Choice O O March 4 (date of request). March 8 (date of lawn maintenance service). March 12 (date of cash payment). None of the choices are correcarrow_forwardRandy’s Restaurant Company (RRC) entered into the following transactions during arecent year.April 1 Purchased a new food locker for $5,000 by paying $1,000 cash and signing a$4,000 note due in six months.April 2 Installed an air-conditioning system in the food locker at a cost of $3,000, purchased on account.April 30 Wrote a check for the amount owed on account for the work completed on April 2.May 1 A local carpentry company repaired the restaurant’s front door, for which RRCwrote a check for the full $120 cost.June 1 Paid $9,120 cash for the rights to use the name and store concept created bya different restaurant that has been successful in the region. For the next fouryears, RRC will operate under the Mullet Restaurant name, with the slogan“business customers in the front, and partiers in the back.”Required:1. Analyze the accounting equation effects and record journal entries for each of thetransactions.2. For the tangible and intangible assets acquired in the preceding…arrow_forwardAnswer the following questions:1. Assume that Rolf Dorman invests $20,000 in cash in a new pool cleaning business on January 1, 2020 and for the first month of operations, engaged in the following transactions:a. January 1, 2020 – invested $20,000 in cashb. January 1, 2020 – paid $1,500 in cash for renting an office space downtown. The payment covers one quarter’s rent from January to March 2020.c. January 2, 2020 – received a contract to clean the public pool downtown for thenext six months. The contract will earn Rolf $650 per month and he is expected to perform the service every 30th of the month.d. January 5, 2020 – Rolf made some refurbishments in his rented space. He bought furniture and fixtures amounting to $2,500 on credit. The credit terms is 2/10, n/eom. He also bought some office equipment amounting to $3,000 on credit with terms n/eom. Rolf has decided to depreciate the furniture & fixtures using straight line method, assuming no salvage value and a useful life of five…arrow_forward
- Make sure all parts are DONE!! (use link at the bottom of question to complete certain parts) Project - Comprehensive Problem For the past several years, Kell Dice has operated a part-time consulting business from his home. As of June 1, 2020, Kell decided to move to rented quarters and to operate the business, which was to be known as Dice Consulting, on a full-time basis. Dice Consulting entered into the following transactions during June. Transactions: June: Kell Dice deposited $55,000 into Dice Consulting as the sole owner. Dice Consulting purchased supplies, $3,500; and office equipment, $17,500 with a 3 year note payable of $10,000 and the remainder in cash. Paid three months’ rent on a lease rental contract, $ 6,000. Paid the yearly premium on property and casualty insurance policies, $3,000. Paid cash for a newspaper advertisement, $120. Received cash from clients as an advance payment for services to be…arrow_forwardSpeedy Delivery Service, Inc. has always rented their delivery truck. Speedy decided to replace the rented delivery truck by purchasing a new truck. The following are the facts for the new truck Speedy just purchased: Date on which truck was purchased ..................... March 1, 2021 Purchase price ..................................................... $64,800 Method of payment .............................................. Cash Estimated life ....................................................... 6 years Estimated value at the end of 6 years .................. $0 Depreciation method ............................................ Straight-Line The following is a partial list of the accounts in Speedy’s General Ledger. These are the only accounts you need for this problem. Cash Truck (asset account) Accumulated Depreciation – Truck Depreciation Expense Requirement 1 Prepare the General Journal entry to record the purchase of the new delivery truck on March 1, 2021. Requirement…arrow_forwardSharon Samson starts a plumbing service called Reliable Waterworks. Selected transactions are described as follows: A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution. B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs. C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account. D) Reliable pays $600 rent for the first month. E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future. F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash. G) Sharon takes a cash withdrawal of $2,500. After all the transactions, what is the amount of total liabilities? a. $15,000 b. $4,400 c. $19,000 d. $4,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College