Answer:
the total trade receivable is $12,300
Explanation:
The computation of the total trade receivable is shown below:
= note due from customer + Due and unpaid from this month's sales + Due and unpaid from last month's sales
= $1,570 + $9,730 + $1,000
= $12,300
Hence, the total trade receivable is $12,300
The other items would not be considered as it is not a trade receivables
Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow:
First Quarter Second Quarter Third Quarter FourthQuarter Total
Sales Revenue $90,000 $ 100,000 $105,00 $130,000 $425,000
Cost of goods sold(54,000) (60,000) (63,000) (78,000) (255,000)
Gross profit 36,000 40,000 42,000 52,000 170,000
Selling & Administrating Expenses
(8,500) 10,000 (10,500) (13,000) (42,000)
Net income $ 27,500 $ 30,000 $ 31,500 $ 39,000 $128,000
Historically, cost of goods sold is about 60 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 8 percent for each respective quarter above last year’s level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 5 percent.
Required:
1) Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada’s estimate.
2) Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks’ estimate.
Answer:
Arvada Corporation
1) Pro Forma Income Statement for the coming year using Mr. Arvada's Estimate:
(Based on 8% above each quarter's sales level)
First Second Third Fourth Total
Quarter Quarter Quarter Quarter
Sales Revenue $97,200 $108,000 $113,400 $140,400 $459,000
Cost of goods sold (58,320) (64,800) (68,040) (84,240) (275,400)
Gross profit 38,880 43,200 45,360 56,160 183,600
Selling & Administrative
Expenses (9,720) 10,800 (11,340) (14,040) (45,900)
Net income $ 29,160 $ 32,400 $34,020 $ 42,120 $137,700
2) Pro Forma Income Statement for the coming year using Ms. Banks' Estimate:
(Based on 5% above each quarter's sales level)
First Second Third Fourth Total
Quarter Quarter Quarter Quarter
Sales Revenue $94,500 $ 105,000 $110,250 $136,500 $446,250
Cost of goods sold (56,700) (63,000) (66,150) (81,900) (267,750)
Gross profit 37,800 42,000 44,100 54,600 178,500
Selling & Administrative
Expenses (9,450) 10,500 (11,025) (13,650) (44,625)
Net income $ 28,350 $ 31,500 $ 33,075 $ 40,950 $133,875
Explanation:
a) Data and Calculations:
Income Statements for the last four quarters:
First Second Third Fourth Total
Quarter Quarter Quarter Quarter
Sales Revenue $90,000 $ 100,000 $105,000 $130,000 $425,000
Cost of goods sold (54,000) (60,000) (63,000) (78,000) (255,000)
Gross profit 36,000 40,000 42,000 52,000 170,000
Selling & Administrative
Expenses (8,500) 10,000 (10,500) (13,000) (42,000)
Net income $ 27,500 $ 30,000 $ 31,500 $ 39,000 $128,000
The information below pertains to Basselier, Inc.:
For the current year temporary differences existed between the financial statement carrying amounts and the tax basis of the following:
Carrying Amount Tax Basis Future Taxable
or (Deductible)
Amount Buildings and equipment $69,000,000 $53,100,000 $15,900,000
Prepaid insurance 1,900,000 0 1,900,000
Liability-loss contingency 10,900,000 0 (10,900,000)
No temporary differences existed at the beginning of the year. Pretax accounting income was $390,000,000 and taxable income was $129,000,000 for the year and the tax rate is 40%. Permanent differences are the cause of any difference between pretax accounting income and taxable income that are not due to temporary differences.
Instructions:
Prepare one journal entry to record the tax provision for the current year. Provide supporting computations.
Answer and Explanation:
The journal entry to record the tax provision is given below:
Income tax expenses $48,840,000
Deferred tax assets ($10,900,000 ×0.40) $4,360,000
To Deferred tax liability (($15,900,000 + $1,900,000)×0.40) $7,120,000
To Income tax payable ($129,000,000 ×0.40) $51,600,000
(To record income tax expenses)
Here the income tax expense and deferred tax asset should be debited as it increased the asset and expenses and credited the liability & tax payable as it increased the liability
Blossom Company purchased $850000 of 9% bonds of Scott Company on January 1, 2021, paying $797036. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $52964 provides an effective yield of 10%. Blossom Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Blossom Company should report interest revenue from the Scott Company bonds of: $81796. $79784. $79704. $76500.
Answer:
$79784
Explanation:
Calculation to determine what Blossom Company should report interest revenue from the Scott Company bonds
First step is to calculate the increase in Held-to-Maturity Debt Securities account
Held-to-Maturity Debt Securities=($797036 × 10%/2) - ($850000 ×9%/2)
Held-to-Maturity Debt Securities=($797036 × 5%) - ($850000 ×4.5%)
Held-to-Maturity Debt Securities=$39,851.8-$38,250
Held-to-Maturity Debt Securities=$1,602
Now let calculate the Interest Revenue
Interest Revenue=[$797036 × (10%/2)]+[($797036 + $1,602) × 10%/2]
Interest Revenue=[$797036 × (10%/2)]+[($797036 + $1,602) × .05]
Interest Revenue= $39,852+$39,932
Interest Revenue= = $79784
Therefore Blossom Company should report interest revenue from the Scott Company bonds of $79784
Note Receivable Cube Ice Company received a 120-day, 10% note for $96,000, dated April 9 from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note. $fill in the blank fecf75f93ff9072_2 c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Aug. 7 fill in the blank ae423a0ac060f98_2 fill in the blank ae423a0ac060f98_3 fill in the blank ae423a0ac060f98_5 fill in the blank ae423a0ac060f98_6 fill in the blank ae423a0ac060f98_8 fill in the blank ae423a0ac060f98_9
Answer: See explanation
Explanation:
a. Determine the due date of the note.
The due date will be gotten by calculating the date that will make 120 days starting from April 9th. This will be:
April = 30 - 9 days = 21 days
May = 31 days
June = 30 days
July = 31 days
August = 7th day.
Therefore, August 7 is the due date
b. Determine the maturity value of the note.
Amount of interest on note = 96000 x 10% x 120/360
= 96000 × 0.1 × 1/3
= $3200
Then, Maturity Value will be:
=$96000 + $3200
= $99200
c. Journalize the entry to record the receipt of the payment of the note at maturity.
7th August:
Debit: Cash = $99200
Credit: Note receivable = $96000
Credit: Interest revenue = $3200
(Note receivable realized)
Supply and demand determine the relative value of any two currencies through the foreign exchange market
a. True
b. False
Answer:
true
I hope it is helpful to you
On January 1, 2020, Franchisee Inc. enters into a contract with Italian Fine Dining Inc. for the right (beginning immediately) to operate an Italian Fine Dining restaurant and receive on-going consulting services for a four-year period. The upfront fee of $100,000 also includes specialized equipment for $12,000. The standalone selling price of the franchise services and specialized equipment are $88,000 and $12,000, respectively. The equipment (with a cost of $9,000) was transferred to the franchisee on March 1, 2020. Determine the amount of revenue to recognize for Italian Fine Dining Inc. on December 31, 2020. Group of answer choices
Answer: $22,000
Explanation:
The total revenue to be recognized by Italian Fine Dinning Inc. is the standalone selling price for the franchise services which is $88,000.
As this contract is for a four year period, Italian Fine Dinning Inc will have to recognize the above revenue over a period of 4 years.
Revenue in December 2020 will therefore:
= 88,000 / 4
= $22,000
Which of the following would be determined as a social force in an environmental scan?
Answer:
an increase in Asian immigration
Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $1 million. Its depreciation and capital expenditures will both be $300,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $50,000 over the next year. Its tax rate is 25%. If its WACC is 10% and its FCFs are expected to increase at 4% per year in perpetuity, what is its enterprise value
Answer:
$9,166,666.67
Explanation:
The computation of the enterprise value is given below
But before that next year free cash flow is
= (Earnings before interest and taxes (EBIT) × (1 - tax rate) ) +depreciation -capital expenditures - working capital
=$1,000,000 × (1 - 40%)) +$300,000 - $300,000 - $50,000
= $550,000
Now the enterprise value is
= Free cash flow ÷ (WACC - growth rate)
= $550,000 ÷ (10% - 4%)
= $9,166,666.67
The operating and maintenance expenses for a mining machine are expected to be $11,880 in the first year and increase by $864 per year during the 15-year life of the machine. What uniform series of payments would cover these expenses over the life of the machine
Answer:
The answer is "[tex]\$16,441[/tex]".
Explanation:
First-year operational and maintenance costs [tex]= \$11,880[/tex].
Operating and repair costs increase inwards[tex]=\$864[/tex] for the first year
N =15 years machine life
Interest [tex]I = 10\%[/tex]annually combined
Please find the image file.
Its single payment sequence is now provided by:
[tex]Amount=(\text{15-year system quantity})\times (\frac{\text{Rate of interest}}{(1-(1+ \text{Rate of interest})- n))}[/tex]
[tex]= \$522,371.3236 \times (\frac{0.1}{(1-(1+0.1)-15)})\\\\[/tex]
Uniform payment sequence [tex]=\$16441.2477 \approx\$16,441[/tex]
On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respectively. On the date of the sale, the book value of the patent was $120,000, and the book value of the equipment was $400,000 (cost of $550,000 less accumulated depreciation of $150,000). Prepare the journal entries to record the sales of the patent and equipment.
Answer:
Journal entry to record the Sale of Patent
Debit : Cash $750,000
Credit : Patent at Book Value $120,000
Credit : Profit and Loss $630,000
Journal entry to record the Sale of Equipment
Debit : Cash $325,000
Debit : Profit and loss $75,000
Debit : Accumulated depreciation $150,000
Credit : Equipment at Cost $550,000
Explanation:
During a sale transaction the entity recognizes 1. The Cash Proceeds resulting from the sale, 2. The Profit or loss resulting from the sale, 3.The entity derecognizes the Cost or Book Value of the Asset as well as the Accumulated depreciation.
A profit of $630,000 has been earned as a result of the sale of the Patent, whereas a loss of $75,000 has been incurred as a result of sale of Equipment.
Why is pricing such an important function of marketing
Answer:
Capitalism
Explanation:
We live in a SocietyYou received a request to create an urgent presentation with predesigned and preinstalled elements. Which option will you use?
You will use the------------option to create an urgent presentation using predesigned and preinstalled elements.
Answer:
Template
Explanation:
A TEMPLATE can be seen as a document that has already been previously designed and formatted which enables a person or an individual to easily create his or her own presentation or a requested emergency presentation instead of starting to create the presentation from the beginning or from the scratch which will inturn help to save a lot of time thereby leading to efficiency.
Therefore based on the information given the option a person or an individual will you use to help create an urgent presentation is called TEMPLATE.
A $64,000 machine with a 6-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with a new machine costing $89,000, with a 10-year class life. The new machine will not increase sales, but will decrease operating costs by $14,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the incremental annual cash flow associated with the project
Answer:
$8,639
Explanation:
The computation of the incremental annual cash flow is shown below:
= Increase in cash flows due to decrease in expenses × (1 -tax rate)+ Depreciation benefit × tax rate
= $14,000 × (1 - 0.34) + -$1,767 × (0.34)
= $9,240 - $600.78
= $8,639
Working note
Depreciation benefit = Depreciation on new machine - Depreciation on the old machine
= $89,000 ÷ 10 years - $64,000 ÷ 6 years
= $8,900 - $10,667
= -$1,767
Consider three investment plans at an annual rate of 9.38%.
Investor A: Invest $2000 per year for the first 10 years of your career. After that, make no further investments, but reinvest the amount accumulated for the next 31 years.
Investor B: Do nothing for the first 10 years. Then start investing $2000 per year for the next 31 years.
Investor C: Invest $2000 per year for the entire duration.
Note that all investments are made at the beginning of each year, the first deposit will be made today at the beginning of age 25 (n=1), and you want to calculate the balance at age of 65 (n=41).
Answer:
Investor A = $545216 .
Investor B = $352377
Investor C = $897594
Explanation:
Annual rate ( r ) = 9.38%
N = 41 years
Calculate the balance at age of 65
1) For Investor A
balance at the end of 10 years
= $2000 (FIA, 9.38 %, 10) (1 + 0.0938) ≈ $33845
Hence at the end of 65 years ( balance )
= $33845 (FIP, 9.38 %, 31) ≈ $545216 .
2) For investor B
at the age of 65 years ( balance )
= $2000 (FIP, 9.38%, 31) = $322159 x (1 + 0.0938) ≈ $352377
3) For Investor C
at the age of 65 years ( balance )
= $2000 (FIP, 9.38%, 41) = $820620 x (1 + 0.0938) ≈ $897594
Dobler Company uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows: Units Per unit price Total Balance, 1/1/2022 300 $5 $1500 Purchase, 1/15/2022 150 ..5.3 795 Purchase, 1/28/2022 150 ..5.5 825 An end of the month (1/31/2022) inventory showed that 240 units were on hand. If the company uses LIFO, what is the value of the ending inventory
Answer:
$2,405
Explanation:
LIFO assumes that the units to arrive last will be sold first. Therefore the value of ending inventory is based on the earlier (old) prices.
Ending Inventory = 240 units x $5 = $2,405
The following information is available for the Gabriel Products Company for the month of July: Static Budget Actual Units 5,000 5,100 Sales revenue $60,000 $58,650 Variable manufacturing costs $15,000 $16,320 Fixed manufacturing costs $18,000 $17,000 Variable marketing and administrative expense $10,000 $10,500 Fixed marketing and administrative expense $12,000 $11,000 The total sales-volume variance for operating income for the month of July would be Group of answer choices $700 favorable $2,550 unfavorable $100 favorable $1,350 unfavorable
Answer: $700 Favorable
Explanation:
Total sales-volume variance = (Actual units - Static budget units) * (Contribution margin per unit of Static budget)
Contribution margin per unit of Static budget = ( Sales - Variable manufacturing costs - Variable marketing and administrative expenses) / Static units
= (60,000 - 15,000 - 10,000) / 5,000
= $7 per unit
Sales-volume variance = (5,100 - 5,000) * 7
= $700 Favorable
Actual sales are higher than budgeted sales so this is FAVORABLE.
Which of the following is true about Likert Scale?
Select one:
a. Respondents indicate how strongly they agree or disagree with a statement
b. The scale doesn't reveal respondent's attitude
c. Scores are not assigned to possible responses
d. The scale doesn't need a pretest for an item analysis
Answer:
A
Explanation:
The Likert Scale is a 5 -point psychometric scale used in questionnaire.
The scale was invented by Rensis Likert
The 5 points are :
Strongly agreeagreeundecideddisagree strongly disagreeAdvantages of the Likert scale
it gives respondents more options instead of yes or nomore options make it more easy to analyse dataDisadvantages of the Likert scale
respondents can lie on the questionnaireAnswer:
a. Respondents indicate how strongly they agree or disagree with a statement
Explanation:
A likert scale is used to determine people's attitude towards a particular topic. It uses scores on the scale to evaluate how strongly a person agrees with a particular subject matter.
The scale is from 1 to 5.
1 - strongly disagree
2 - disagree
3 - neutral
4 - agree
5 - strongly agree
This type of scale is used for website surveys, customer surveys, and so on to gauge perceptions, feelings and insights of the target population
Sheffield Company uses a periodic inventory system. For April, when the company sold 560 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 240 $27 $ 6,480 April 15 purchase 370 32 11,840 April 23 purchase 390 35 13,650 1,000 $31,970 Compute the April 30 inventory and the April cost of goods sold using the LIFO method.
Answer:
$19,090
Explanation:
LIFO assumes that the last units to arrive will be sold first. Therefore, the cost of goods sold will be based on later (recent) prices.
Therefore,
Cost of Sales = 390 units x $35 + 170 x $32 = $19,090
What is aggregate demand? You can gain or 100 points on this Place the following items in order of the magnitude of the effect on the aggregate demand curve, starting with the greatest effect and descending to the least. Keep in mind that there will be an item which has zero effect on the AD curve (because it causes movement along the curve). Activity S. 141 Start by clicking the first item in the sequence or dragging it here Drag the items below into the box above in the correct order, starting with the first item in the sequence. Current 949 Prices of tech stocks increase in the late 1990s as a result of a speculative bubble. Your grad been subr A trade war with China in the late 2010s leads to a decrease in trade. Question Help Development of computer-based technologies from the 1940s to now. People notice prices rising and an associated decrease in purchasing power. State governments in the 2010s cut their budgets for teachers, infrastructure, police, and other government expenditures.
Answer:
Aggregate demand refers to the demand for the Gross Domestic Product in a country. In other words, it is the demand for the final goods and services produced in a country within a period.
Order of effect on Aggregate Demand.
1. Development of computer-based technologies from the 1940s to now.
This will have the greatest effect on Aggregate Demand (AD) because it will lead to an increase in the long term capacity of the economy to produce goods and services thereby increasing the demand for those same goods and services.
2. State governments in the 2010s cut their budgets for teachers, infrastructure, police, and other government expenditures.
This will contribute less to AD than the one above but the effect will still be significant because government spending is a significant component of AD so reducing it will reduce AD.
3. Prices of tech stocks increase in the late 1990s as a result of a speculative bubble.
Prices of tech stocks rising will lead to more people buying these stocks thereby increasing the investment portion of AD and having a significant effect on its increase.
4. People notice prices rising and an associated decrease in purchasing power.
If people notice a decrease in purchasing power, they will begin to buy less goods and services as they cannot afford as much. This will reduce Consumption in the AD curve but will not significantly impact AD as the ones above.
5. A trade war with China in the late 2010s leads to a decrease in trade.
A trade war with China will affect the Net exports side of the AD but there will be other countries to trade with and goods will still be purchased from and sold to China in some quantity so the AD will be least affected here.
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:____
Direct materials used $74,000
Direct labor used $136,100
Pre-determined overhead rate
(based on direct labor) 120%
Goods transferred to
finished goods $444,000
Cost of goods sold $456,000
Credit sales $831,600
A. Debit Accounts Receivable $831,600; credit Cost of Goods Sold $831,600.
B. Debit Accounts Receivable $831,600; credit Sales $375,600; credit Finished Goods Inventory $456,000.
C. Debit Cost of Goods Sold $456,000; credit Sales $456,000.
D. Debit Finished Goods Inventory $456,000; debit Sales $831,600; credit Accounts Receivable $831,600; credit Cost of Goods Sold $456,000.
D. Debit Accounts Receivable $831,600; credit Sales $831,600; debit Cost of Goods Sold $456,000; credit Finished Goods Inventory $456,000.
Answer: Debit Accounts Receivable $831600; credit Sales $831600; debit Cost of Goods Sold $456,000; credit Finished Goods Inventory $456,000.
Explanation:
Based on the information given, the journal entry to record June sale will be:
Debit Accounts Receivable $831,600;
Credit Sales $831,600;
Debit Cost of Goods Sold $456,000;
Credit Finished Goods Inventory $456,000.
briefly describe the term budget
Answer:
A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities, and cash flows. Companies, governments, families, and other organizations use it to express strategic plans of activities or events in measurable terms.
Shimada Products Corporation of Japan plans to introduce a new electronic component to the market at a target selling price of $15 per unit. The company is investing $5,000,000 to purchase the equipment it needs to produce and sell 300,000 units per year. Its required rate of return on all investments is 12%. Required: Compute the component’s target cost per unit.
Answer: $13 per unit
Explanation:
Thw following information can be gotten from the question:
Sales = 300000 × $15 = $4,500,000
Less: Expected profit = 12% × 5,000,000 = 600,000
Target cost = $3,900,000
Since there are 300000 units, the component’s target cost per unit will be:
= Target cost / Total units
= $3900000 / 300000
= $13 per unit
Pasadena Candle Inc. budgeted production of 730,000 candles for the January. Wax is required to produce a candle. Assume 11 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,400 pounds. The desired January 31 wax inventory is 12,900 pounds. If candle wax costs $1.40 per pound, determine the direct materials purchases budget for January. (One pound
Answer:
696,325 Pounds
Explanation:
The computation of the direct material purchase budget is given below:
Here we assume that
one pound = 16 ounces
Now total wax needed is
= Production of Finished Goods × Pounds of wax needed for production
= 730,000 candles × 11 ÷ 16
= 501,875 pounds
Now
Total direct material purchased = (Total Wax needed + Ending Inventory, Jan.31 - opening inventory) × unit price
= (490,625 Pounds + 12,900 pounds - 17,400 pounds) × $1.40 per pound
= 696,325 Pounds
The Elmo Company purchased equipment on January 1, Year 1 at a cost of $26,000. The equipment was estimated to last for 8 years and have a salvage value of $2,000. At the end of Year 5, it was determined that the total useful life of the equipment was really 11 years, and the salvage value was expected to remain unchanged. The firm uses the straight-line method of depreciation.
a. What amount of depreciation was recorded for the equipment in year 1?
b. What was the amount of the depreciation expense recorded in year 6?
Answer:
The Elmo Company
a. The amount of the depreciation expense recorded in year 1 = $3,000
b. The amount of the depreciation expense recorded in year 6 = $1,500
Explanation:
a) Data and Calculations:
Cost of equipment on January 1, Year 1 = $26,000
Estimated useful life = 8 years
Salvage value = $2,000
Depreciable amount = $24,000 ($26,000 - 2,000)
Annual depreciation expense = $3,000 ($24,000/8)
Accumulated depreciation after 5 years = $15,000 ($3,000 * 5)
Net book value after 5 years = $11,000
Sixth year appraisals:
Remaining useful life = 6 years
Salvage value = unchanged at $2,000
Depreciable value = $9,000 ($11,000 - 2,000)
Annual depreciation expense = $1,500 ($9,000/6)
13. You are considering the purchase of two different insurance annuities. Annuity A will pay you $16,000 at the beginning of each year for 8 years. Annuity B will pay you $12,000 at the end of each year for 12 years. Assuming your money is worth 7%, and each costs you $75,000 today, which would you prefer
Answer:
The present value of Annuity is 102,228 which is higher than that of Annuity B - $95,312 Hence, Annuity is preferable.
Explanation:
To determine which to go for, we would calculate the present value of insurance investment discounted at the at the rate of 7%.
The PV of the insurance annuities would be done as follows:
PV of annuity A
The number of payments would be 20 installments. Please be mindful not to say 19. Remember the first the payment occurs in year 4 which is inclusive.
PV = A + A × 1- ( (1+r)^(-n))/r
A- annual payment
r- rate of return
n- number of years
PV = 16,000 + 16,000 × (1- 1.07^(-7) )/0.07 = $102,228.63
PV of annuity B
PV = 12,000× (1-1.07^(-12)/0.07) = $95,312.24
The present value of Annuity is 102,228 which is higher than that of Annuity B - $95,312 Hence, Annuity is preferable.
At the beginning of the year, Palermo Brothers, Inc., purchased a new plastic water bottle making machine at a cost of $45,000. The estimated residual value was $5,000. Assume that the estimated useful life was four years, and the estimated productive life of the machine was 400,000 units. Actual annual production was as follows:
Year Units
1 120000
2 90000
3 110000
4 80000
Required:
Complete a separate depreciation schedule for each of the alternative methods. (Do not round your intermediate calculation.)
a. Double-declining-balance.
b. Units-of-production.
c. Straight-line.
Answer:
See the attached excel file for the depreciation schedule for the three alternative methods.
Explanation:
a. Double-declining-balance.
Note: See part a of the attached excel file for the depreciation schedule for Double-declining-balance method.
In the attached excel file, the depreciation rate used for the Double-declining-balance method is calculated as follows:
Straight line depreciation rate = 1 / Estimated useful life = 1 / 4 = 0.25, or 25%
Double-declining depreciation rate = Straight line depreciation rate * 2 = 25% * 2 = 50%
b. Units-of-production.
Note: See part b of the attached excel file for the depreciation schedule for Units-of-production method.
c. Straight-line.
Note: See part b of the attached excel file for the depreciation schedule for Straight-line method.
In the attached excel file, the depreciation rate used for the Straight-line method is calculated as follows:
Straight line depreciation rate = 1 / Estimated useful life = 1 / 4 = 0.25, or 25%
The change brought about by online competition from Amazon and Walmart are examples of _____
Answer:
Transformational change.
Explanation:
I think.. i am not sure
What is the cause of prices dropping?
Answer:
When prices drop people usually go buy it even if it is a little drop.
Explanation:
They go because of a phycological difference in price.
Answer:
PEople buy it
Explanation:
Manchester Company sells equipment on June 1, 2021, for $222,400 cash. Manchester incurred $1,280 of removal and selling costs on disposal. The equipment cost $400,000 when it was purchased on January 2, 2018. Its estimated residual value and useful life were $64,000 and 10 years, respectively. Manchester uses straight-line depreciation and records annual depreciation on each December 31.a. Prepare the journal entries needed to record the asset disposal on June 1, 2021.b. Record the journal entries if the equipment were abandoned (zero fair value) on June 1, 2021.Note: Record debit accounts in alphabetical order using the first letter of the account name.
Answer:
A. June 1, 2021
Dr Depreciation Expense $14,000
Cr Accumulated Depreciation-Equipment $14,000
June 1, 2021
Dr Cash $221,120
Dr Accumulated Depreciation-Equipment $114,800
Dr Loss on Sale of Equipment $64,080
Cr Equipment $400,000
June 1, 2021
Dr Depreciation Expense $14,000
Cr Accumulated Depreciation-Equipment $14,000
June 1, 2021
Dr Accumulated Depreciation-Equipment $114,800
Dr Loss on Sale of Equipment $285,200
Cr Equipment $400,000
Explanation:
a. Preparation of the journal entries needed to record the asset disposal on June 1, 2021
First step is to calculate the Annual depreciation under straight line using this formula
Annual depreciation under straight line = (Cost - Residual Value)/Useful life
Let plug in the formula
Annual depreciation under straight line= ($400,000 - $64,000)/10 yrs
Annual depreciation under straight line = $33,600 per year
Second step is to calculate the Depreciation charged from Jan 2, 18 to Dec 31, 2020
Depreciation charged from Jan 2, 18 to Dec 31, 2020 = $33,600*3 yrs
Depreciation charged from Jan 2, 18 to Dec 31, 2020 = $100,800
Third step is to calculate the Depreciation from Jan 1, 2021 to June 1, 2021
Depreciation from Jan 1, 2021 to June 1, 2021
Depreciation from Jan 1, 2021 to June 1, 2021= $33,600*5/12 = $14,000
Now let Prepare the Journal entries
June 1, 2021
Dr Depreciation Expense $14,000
Cr Accumulated Depreciation-Equipment $14,000
(To update depreciation)
June 1, 2021
Dr Cash ($222,400-$1,280) $221,120
Dr Accumulated Depreciation-Equipment ($100,800+$14,000) $114,800
Dr Loss on Sale of Equipment (400,000-221,120-$114,800) $64,080
Cr Equipment $400,000
(To record the disposal of equipment)
b) Preparation to Record the journal entries if the equipment were abandoned on June 1, 2021.
June 1, 2021
Dr Depreciation Expense $14,000
Cr Accumulated Depreciation-Equipment $14,000
(To update depreciation)
June 1, 2021
Dr Accumulated Depreciation-Equipment (100,800+$14,000) $114,800
Dr Loss on Sale of Equipment ($400,000-$114,800) $285,200
Cr Equipment $400,000
(To record the disposal of equipment)
TB MC Qu. 16-98 At the beginning of the recent... At the beginning of the recent period, there were 1,020 units of product in a department, 35% completed. These units were finished and an additional 5,400 units were started and completed during the period. 960 units were still in process at the end of the period, 25% completed. Using the weighted average method, the equivalent units produced by the department were: Multiple Choice
Answer:
I will need more information
Explanation:
