FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
expand_more
expand_more
format_list_bulleted
Videos
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You are presented with the following trial balance of Carl Ltd at 31 October 2018. DrCr R,000Building at costBuildings, accumulated depreciation, 1 November 2018 Plant at costPlant, accumulated depreciation, 1 November 2018 Land at costBank balanceRevenuePurchasesDiscounts receivedReturns inwardsWagesEnergy expensesTrade PayablesTrade ReceivablesInventory at 1 November 2018Allowance for debtors at 1 November 2018 Administrative expensesDirector's remunerationAccumulated profit at 1 November 201810% DebentureDividend paidR1 Ordinary sharesShare premium accountR,000 74060 220110 23550 1,8001,1059035 180 105250 3201601080 70306503,28080 3,280130 50Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost, allocated 30%…
These items are taken from the financial statements of Crane Company at December 31, 2022.
Buildings
$133,308
Accounts receivable
15,876
Prepaid insurance
4,032
Cash
14,918
Equipment
103,824
Land
77,112
Insurance expense
983
Depreciation expense
6,678
Interest expense
3,276
Common stock
75,600
Retained earnings (January 1, 2022)
50,400
Accumulated depreciation-buildings
57,456
Accounts payable
11,970
Notes payable
117,936
Accumulated depreciation-equipment
23,587
Interest payable
4,536
Service revenue
18,522
The balance sheets of HIROE Inc. showed the following at December 31, 2020 and 2019:
December 31, 2020
December 31, 2019
Equipment, less accumulated depreciation of $212,625 at
December 31, 2020, and $151,875 at December 31, 2019.
$273,375
$334,125
Required:
a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first
acquired, what is the amount of the depreciation expense for 2020?
b. Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HİROE Inc., is eight years and that
there is no estimated salvage value. Determine:
1. What the original cost of the equipment was.
2. What depreciation method is apparently being used.
3. When the equipment was acquired.
c. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the
journal entry for the sale of the machine to calculate the gain or loss on the sale of one…
Chapter 8 Solutions
FINANCIAL ACCT-CONNECT
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Identify events that might lead to disposal of a...Ch. 8 - Prob. 10DQ
Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 19DQCh. 8 - Prob. 20DQCh. 8 - Prob. 21DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Straight-line depreciation P1 On January 2, 2016,...Ch. 8 - Prob. 4QSCh. 8 - Computing revised depreciation C2 On January 2,...Ch. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Identify the following assets a through i as...Ch. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Caleb Co. owns a machine that costs $42,400 with...Ch. 8 - Prob. 15QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Partial-year depreciation; disposal of plant asset...Ch. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - A Exchanging assets P5 Gilly Construction trades...Ch. 8 - Recording plant asset disposals P2 P5 On January...Ch. 8 - Prob. 25ECh. 8 - Plant asset costs; depreciation methods C1 P1...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Onslow Co. purchases a used machine for $178,000...Ch. 8 - Prob. 7PSACh. 8 - Prob. 8PSACh. 8 - Prob. 1PSBCh. 8 - Prob. 2PSBCh. 8 - Asset cost allocation; straight-line depreciation...Ch. 8 - Computing and revising depreciation; revenue and...Ch. 8 - Computing and revising depreciation; selling plant...Ch. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8PSBCh. 8 - Prob. 8SPCh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Teams are to select an industry, and each team...Ch. 8 - Prob. 5BTNCh. 8 - Prob. 7BTNCh. 8 - Prob. 9BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Your examination of the financial statements of Chan Corporation revealed the following errors were made in the preparation of the 2017 financial statements: a. The depreciation expense in 2017 was recorded as P100,000, instead of P10,000b. Sales made in December 2017 for P150,000 were recorded in January 2018c. Rent paid on April 30, 2017 covering a one-year period was recognized as expense in 2017. Unexpired portion of P40,000 was not recordedat year-endd. Advances from customers amounting to P25,000 were recognized as sales in 2017. The goods were shipped in 2018.e. Salaries totaling to P50,000 was not recorded at year-end. The expense was recorded upon payment in 2018.f. Collections of accounts receivable in 2017 amounting to P20,000 were recorded in 2018.g. The unadjusted net income for 2017 is P650,000 Required: What is the net effect of the errors in the working capital at the end of 2017 and 2018? (TABULATE YOUR ANSWERS AND SHOW THE VALUES)arrow_forward! Required information [The following information applies to the questions displayed below.] The following is a portion of the current asset section of the balance sheets of HIROE Company, at December 31, 2023 and 2022: Accounts receivable, less allowance for uncollectible accounts of $8,000 and $4,600, respectively 12/31/23 $ 150,000 12/31/22 $ 134,100 Required: b. If bad debts expense for 2023 totaled $10,800, what was the amount of accounts receivable written off during the year? (Hint. Use the T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.) c. The December 31, 2023, Allowance account balance includes $3,200 for a past due account that is not likely to be collected. This account has not been written off. 1. If it had been written off, will there be any effect of the write off on the working capital at December 31, 2023? 2. If it had been written off, will there be any effect of the write off on net income and ROI for the…arrow_forwardEmerson Real Estate Appralsal Adjusted Trial Balance June 30, 2016 Balance Account Title Debit Credit Cash %24 4,200 Accounts Recelvable 5,500 Office Supplies 2,300 Prepaid Insurance 2,000 Building 73,000 Accumulated Depreciation-Bullding $ 25,300 Land 13,400 Accounts Payable 19,500 Interest Payable 8,500 Salaries Payable 1,600 Uneamed Revenue 4,300 Notes Payable (long-term) 35,000 Emerson, Capital 41,500 Emerson, Withdrawals 27,600 Service Revenue 48,200 Insurance Expense 4,400 Salaries Expense 32,600 Supplies Expense 700 Interest Expense 8,500 Utilities Expense 2,400 Depreciation Expense-Building 7.300 Total 183,900 $ 183,900 41.500arrow_forward
- Your examination of the financial statements of water Corporation revealed the following errors were made in the preparation of the 2017 financial statements: a. The depreciation expense in 2017 was recorded as P100,000, instead of P10,000b. Sales made in December 2017 for P150,000 were recorded in January 2018c. Rent paid on April 30, 2017 covering a one-year period was recognized as expense in 2017. Unexpired portion of P40,000 was not recorded at year-endd. Advances from customers amounting to P25,000 were recognized as sales in 2017. The goods were shipped in 2018.e. Salaries totaling to P50,000 was not recorded at year-end. The expense was recorded upon payment in 2018.f. Collections of accounts receivable in 2017 amounting to P20,000 were recorded in 2018.g. The unadjusted net income for 2017 is P650,000 Required: What is the net effect of the errors in the working capital at the end of 2017 and 2018?arrow_forwardQUESTION : " The balance sheet of Lara Ltd are as follows: 31/12/2019 Non-Current Assets RM RM RM Equipment (Cost) Less: Accumulated depreciation 28,500 (11,450) 17,050 Current Assets 18,570 Inventory Account receivable 8,470 Less: Provision doubtful debts (420) 8,050 4,060 30,680 Cash and bank Total Assets Current Liabilities Account Payable 4,140 Non-Current Liabilities Loan 10,000 Total Liabilities (14,140) 16,540 Net Assets 33,590 Capital Opening Add: Net profit 35,760 10,240 Cash introduced Less: Drawing Total Capital (12,410) 33,590 31/12/2020 Non-Current Assets RM RM RM Equipment (Cost) Less: Accumulated depreciation 26,100 (13,010) 13,090 Current Assets 16,250 Inventory Account receivable 14,190 Less: Provision doubtful debts (800) 13,390 3,700 33,340 Cash and bank Total Assets Current Liabilities Account Payable 5,730 Non-Current Liabilities Loan 4,000 23,610 36,700 Total Liabilities (9,730) Net Assetsarrow_forwardYou have partial information from an entity financial statements as follows: Accounts receivable Allowance for doubtful accounts Inventory FV-NI Investments Accounts payable Unearned revenues Equipment Accumulated depreciation - equipment Sales Cost of goods sold Depreciation expense Bad debt expense Loss on sale of equipment Loss on sale of FV-NI investments Holding gain- FV-NI investments Note also the following: Accounts written off that were recoved during 2024: $ $ $ $ $ 2024 4,450,000 $ (198,000) $ 3,820,000 $ 1020000 2,740,000 $ 365,000 $ 200,000 -98,000 $ $ $ $ $ 2023 3,690,000 (165,000) 4,490,000 925000 2,630,000 430,000 189,000 -89,000 20,560,000 9,250,000 10,000 356,000 5,500 5000 33000 25,000 Required 1) Calculate the cash collected from customers in 2024. 2) Calculate the cash paid to suppliers for purchase of inventory. 3) One FV-NI investment was sold during the year. Its carrying value at the beginning of the year was: $ 125,000 Calculate the NET cash generated/used up…arrow_forward
- During 2025, Sheridan Company entered into the following transactions. 1. 2. 3. (1) Your answer is partially correct. Using the following tabular analysis, show the effect of each transaction on the accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (2) (3) Purchased equipment for $313,650 cash. Issued common stock to investors for $136,360 cash. Purchased inventory of $70,990 on account. $ Cash 313650 eTextbook and Media 136360 Assets Inventory Save for Later Last saved 11 days ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. 70990 Equipment 313650 Attempts: 1 of 3 used Liabilities Accounts Payable 709 Submit Answerarrow_forwardno Balance Sheet Classification Indicate how each of the following items would be classified as of 12/31/2018. Then in the next column indicate (yes or no) if the account is a contra account. Balance Sheet Classification Have all accounts been classified? Other assets Current Liabilities Long-term Liabilities Retained earnings Contra- account Classification Types Current Assets Investments Property, Plant, & equipment Intangible assets Note to the financial statements Not Reported 1. Copyright 2. Uninsured fire loss occurring 10 days after the balance sheet date 3. Petty cash fund 4. Unamortized discount on bonds due in 2019. 5. Unamortized discount on bonds due in 2020. 6. Accumulated depreciation 7. Land held for speculation. 8. Current maturity of bonds payable. 9. Rental revenues for three months collected in advance. 10. Land used as for plant. 11. Salaries which the company has budgeted to pay employees within the next year. 12. Advances to sales person for salaries. 13. Cash…arrow_forwardTopic: Financial Accounting Review: Error Correction, Cash, Accrual and Single-Entry MethodYour examination of the financial statements of Chan Corporation revealed the following errors were made in the preparation of the 2017 financial statements: a. The depreciation expense in 2017 was recorded as P100,000, instead of P10,000b. Sales made in December 2017 for P150,000 were recorded in January 2018c. Rent paid on April 30, 2017 covering a one-year period was recognized as expense in 2017. Unexpired portion of P40,000 was not recordedat year-endd. Advances from customers amounting to P25,000 were recognized as sales in 2017. The goods were shipped in 2018.e. Salaries totaling to P50,000 was not recorded at year-end. The expense was recorded upon payment in 2018.f. Collections of accounts receivable in 2017 amounting to P20,000 were recorded in 2018.g. The unadjusted net income for 2017 is P650,000 Required: What is the net effect of the errors in the working capital at the end of…arrow_forward
- Displayed here are the draft financial statements which have been prepared for Valerie’s business for the year ended 30 April 2021. Draft Statement of Financial Position as at 30 April 2021 Assets Non-current assets see point a. below Cost 90,000 Provision for depreciation 30,600 Net Book Value 59,400 Current assets Inventory To be advised Trade receivables 43,200 Cash 4,680 47,880 Total assets 107,280 Liabilities Current liabilities Trade payables 17,280 Non-current liabilities Bank loan 16,000 Total liabilities 33,280 Net assets 74,000 Owner’s interest Capital invested 24,000 Profit and Loss Reserve: Opening balance 34,720 Draft profit for the year…arrow_forwardRequired: List any corrections that need to be made. Errors can be in classification, lack of disclosure, format, or terminology. Eldorado Bhd. Balance Sheet For the Year Ended June 30, 2019 Assets Current Assets: RM 37,000 62,000 17,000 RM116,000 Accounts Receivable Merchandise Inventory Cash Investments: Marketable Securities Treasury Stock RM 18,000 4,000 22,000 Tangible Assets: Buildings Less: Reserve for Depreciation RM194,000 (34,000) 160,000 Other Assets: Unamortized Portion of Bond Payable Discount 3,000 RM301.000 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Bank Note Payable (due 6/1/2022) RM 26,000 22,000 RM 48,000 Long-Term Liabilities: Bonds Payable 112,000 Capital Stock: Common Stock Earned Surplus RM 49,000 92,000 141,000 RM301.000arrow_forwardCalculate the following ratios from the income statement and balance sheet all are required 1-Payables Turnover 2-Debt-Equity Ratio 3-Debt Ratio 4-Total Asset Turnover 5-Fixed Asset Turnover Statement of financial positionas at 31 December 2018 2018 2017 Note RO RO ASSETS Non-current assets Property, plant and equipment 14 8,407,572 9,300,442 Deferred tax assets 12 40,977 18,550 8,448,549 9,318,992 Current assets Inventories 15 430,885 422,421 Trade and other receivables 16 1,129,440 1,235,724 Due from related parties 24 70,300 73,050 Cash and bank balances 17 6,856,734 6,439,709 Total current assets 8,487,359 8,170,904 Total assets 16,935,908 17,489,896 EQUITY…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY