First, calculate any gain or loss on the disposal of the equipment Market value of assets received Less Book value of asset disposed of Cost Less Accumulated Depreciation Gain or(Loss) 49004 36000
Q: Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…
Q: Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in…
A: The account receivables turnover ratio tells about the efficiency of the business to convert its…
Q: Plumber Corporation owns 60 percent of Socket Corporation’s voting common stock. On December 31,…
A: If a company owns more than 50% voting rights in another company, the holding company is required to…
Q: The Miller Company earned $97,000 of revenue on account during Year 1. There was no beginning…
A: ACCOUNTS RECEIVABLEAccounts Receivable are reported under the current assets section of the Balance…
Q: Brief Exercise 5-47 Aging Method Spotted Singer Ltd. sells karaoke machines to businesses and…
A: Bad debt expense :— It is the amount that is no longer collectible from the customer during the…
Q: Franklin Trophies makes and sells trophies it distributes to little league ballplayers. The company…
A: Total fixed cost does not change with the change in level of output.The fixed cost per unit will…
Q: Question 49 Under which of the following cases may a percentage change be computed? There is a…
A: Correct Option: 2. The trend of the amounts is decreasing but all amounts are positive (Correct): In…
Q: Required information Use the following information for the Problems below. (Algo) [The following…
A: The Cost of Goods Manufactured (COGM) represents a financial accounting concept used by…
Q: Consider the following account starting balances and transactions involving these accounts. Use…
A: The balance sheet represents the Financial position of the business with assets and liabilities on a…
Q: [The following information applies to the questions displayed below] Maben Company was started on…
A: Cash flow statement :— It is one of the financial statement that shows change in cash and cash…
Q: The Marshall Company has a joint production process that produces two joint products and a…
A: The difference between sales and its cost of goods sold (COGS), stated as a percentage of sales, is…
Q: High-Low Method for a Service Company Boston Railroad decided to use the high-low method and…
A: The high-low method is used to differentiate the mixed cost. Mixed cost is the combination of fixed…
Q: Pitney Company purchased an office building, land, and furniture for $631,100 cash. The appraised…
A: Journal means the book of prime entries where all entries are recorded in different pages.Ledger…
Q: The account receivables balance for the year ended 31st March 20XX was $ 24,800. Bad debts of $2,800…
A: Account receivable means the amount due from customer whom we sold the goods on credit.Allowance for…
Q: Periodic inventory using FIFO, LIFO, and weighted average cost methods The units of an item…
A: The first in first out method is the inventory valuation method, according to this method the most…
Q: ensen Corporation produces a part for use in the production of one of its products. The per-unit…
A: The variable cost per unit remains constant at every level of production. The fixed costs in total…
Q: Required information [The following information applies to the questions displayed below.] This year…
A: Interest expense means, the cost arising from the borrowed funds of the company. Interest expense…
Q: O None of the choices are correct. O $2,000. $4,000. O $0. O $30,000.
A: Amortization is an accounting method that systematically reduces the value of an intangible asset,…
Q: Skysong Company uses the gross profit method to estimate inventory for monthly reporting purposes.…
A: Ending inventory consists of the cost of all commodities that have not yet been sold and are still…
Q: Woody Delivery Company purchased a new delivery truck for $69,000 on April 1, 2019. The truck is…
A: The accounting technique of spreading out the expense of a physical or tangible item over the course…
Q: Heather Smith Cosmetics (HSC) manufactures a variety of products and is organized into three…
A: The economic value added is computed by deducting the expected return using the cost of capital from…
Q: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per…
A: Absorption costing method is the method of costing in which product cost is calculated by adding…
Q: During 2020, Ivanhoe Company started a construction job with a contract price of $1,620,000. The job…
A:
Q: Headland Company must make computations and adjusting entries for the following independent…
A: Liability might indicate that an individual owe someone money or services, but it also frequently…
Q: Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: The Heating Division of Bramble International produces a heating element that it sells to its…
A: Transfer price means the price charged by one department to another department of the same company…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: December 31 2024 2025 2026 2027 $ $ $ Year-End Costs 96,460 131,100 141,120 $ $ Base-Year Costs…
A: DVL stands for Dollar Value LIFO method. LIFO stands for Last in first out.
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: Material price variance is one of material cost variance being used in business. It means difference…
Q: A local grocery store sold one of their delivery vehicles for $8,000 cash and recognized a $500 gain…
A: Income Statement: It is a part of the financial statement of a company in which revenue and expenses…
Q: Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that…
A: The revenue and spending variance is the difference between theflexible and actual costs data. The…
Q: If vertical analysis, using total assets as the base, shows that total liabilities have increased…
A: Vertical analysis of the financial statement means the expression of each item of the financial…
Q: Fill in the missing numbers for the following income statement. (Do not round intermediate…
A: Income statement is a financial statement that shows profitability, total revenue and total expenses…
Q: BNC Company produces a product in two departments: (1) mixing and (2) finishing. the company uses a…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The direct…
Q: Sheridan Company manufactures and sells two products. Relevant per unit data concerning each product…
A: Contribution margin:The contribution margin is determined by deducting the variable costs from the…
Q: ovember 1 Accepted a $5,000, 180-day, 5% note from Kelly White in granting a tine extension on her…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: You have the following information for Wildhorse Gems. Wildhorse uses the periodic system of…
A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…
Q: Predetermined Factory Overhead Rate Exotic Engine Shop uses a job order cost system to determine the…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Direct Labor Variances The following data relate to labor cost for production of 3,800 cellular…
A: The labor variance is the difference between the actual and standard labor cost. The variance can be…
Q: Grouper Corporation purchased 460 shares of Nolan Inc. common stock for $14,100 (Grouper does not…
A: The official book of the corporation, the journal contains a chronological record of all…
Q: In the first month of business, Jakmak Interior Design Company had the following transactions: Mar.…
A: Recording of journal entries is first step in accounting cycle process, under which atleast one…
Q: Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: During the current year, Yost Company disposed of three different assets. On January 1 of the…
A: ØJournal entries consist of all the business financial transactions.They are recorded in…
Q: Required information [The following information applies to the questions displayed below.) Rose…
A: Short-term investment is also recognized as a temporary investment or marketable security. It has…
Q: Hudson Company's variable overhead is applied on the basis of direct labor hours. The standard cost…
A: The variance is the difference between the actual and applied overhead costs. The actual overhead…
Q: Presented below is information related to plant assets and intangible assets at year end on December…
A: Balance sheet is a financial statement that shows list of final ending balances of assets,…
Q: A long-term investment in securities with significant influence means that the investor owns voting…
A: Long-term investment refers to the assets that are purchased for a longer period of time which…
Q: Trey Inc sells used machinery to Buyer Ltd. Buyer takes possession of the truck on October 1, 20X0…
A: Zero Interest bearing loan should be recognized at fair Value. Fair value is determined by…
Q: The plant assets section of the comparative balance sheets of Anders Company is reported below.…
A: Cash flow from investing activity includes transactions like purchase and sale of long-term assets…
Q: E8.7 (LO 2), AP Gibbs Corporation produces industrial robots for high-precision manufacturing. The…
A: Target selling price is the sum of total cost per unit and desired profit per unit. Total cost is…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
- Selling an asset at gain or loss Peter Company purchased equipment on January 1, 2018, for $28,000. Suppose Peter Company sold the equipment for $4,000 on December 31, 2019. Accumulated Depreciation as of December 31, 2019, was $11,000. Journalize the sale of the equipment, assuming straight-line depreciation was used.Selling an asset at gain or loss Alpha Communication purchased equipment on January 1, 2018, for $27,500. Suppose Alpha Communication sold the equipment for $20,000 on December 31, 2020. Accumulated Depreciation as of December 31, 2020, was $10,000. Journalize the sale of the equipment, assuming straight-line depreciation was used.Assume Sambazon.com e sold an acai processing machine for $172,000 cash. If accumulated depreciation on the sale date was $58,311 and a gain of $6,721 was recognized on the sale, what was the original cost of the asset? O $223,590 O $216,869 O $165,279 O $65,032 O $113,689
- S9-9 Selling an asset at gain or loss Alpha Communication purchased equipment on January 1, 2018, for $27,500. Suppose Alpha Communication sold the equipment for $20,000 on December 31, 2020. Accu- mulated Depreciation as of December 31, 2020, was $10,000. Journalize the sale of the equipment, assuming straight-line depreciation was used.The information that follows relates to equipment owned by Sweet Acacia Limited at December 31, 2023: Cost Accumulated depreciation to date Expected future net cash flows (undiscounted) $3,600,000 400,000 2,800,000 Expected future net cash flows (discounted, value in use) 2,540,000 Fair value Costs to sell (costs of disposal) 2,480,000 20,000 Assume that Sweet Acacia will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Sweet Acacia uses the straight-line method of depreciation. Assume that Sweet Acacia is a private company that follows ASPE. (c) * Your answer is incorrect. The equipment's fair value at December 31, 2024, is $2.60 million. Prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List…Presented below is information related to equipment owned by Wildhorse Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,620,000 1,180,000 8,260,000 5,664,000 Assume that Wildhorse will continue to use this asset in the future. As of December 31, 2025, the equipment has a rer
- I need to know how to calculate the gain on the equipment sold in part C 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: 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? Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine: What the original cost of the equipment was. What depreciation method is apparently being used. When the equipment was acquired. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal…A fixed asset with a cost of $33,769.00 and accumulated depreciation of $30,392.10 is sold for $5,740.73. What is the amount of the gain or loss on disposal of the fixed asset? Select the correct answer. $2,363.83 gain $2,363.83 loss $3,376.90 loss $3,376.90 gainA fixed asset with a cost of $34,571 and accumulated depreciation of $31,113.90 is sold for $5,877.07. What is the amount of the gain or loss on disposal of the fixed asset? Oa. $3,457.10 loss Ob. $3,457.10 gain Oc. $2,419.97 gain Od. $2,419.97 loss
- A fixed asset with a cost of $31,365.00 and accumulated depreciation of $28,228.50 is sold for $5,332.05. What is the amount of the gain or loss on disposal of the fixed asset? Select the correct answer. $3,136.50 loss $2,195.55 loss $2,195.55 gain $3,136.50 gainThe information that follows relates to equipment owned by Buffalo Limited at December 31, 2023: Cost Accumulated depreciation to date $4,320,000 480,000 Expected future net cash flows (undiscounted) 3,360,000 Expected future net cash flows (discounted, value in use) 3,048,000 Fair value 2,976,000 Costs to sell (costs of disposal) 24,000 Assume that Buffalo will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Buffalo uses the straight-line method of depreciation. Assume that Buffalo is a private company that follows ASPE. (a) (b) Prepare the journal entry to record depreciation expense for 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation December 31, 2024 Debit CreThe information that follows relates to equipment owned by Buffalo Limited at December 31, 2023: Cost Accumulated depreciation to date $4,320,000 480,000 Expected future net cash flows (undiscounted) 3,360,000 Expected future net cash flows (discounted, value in use) 3,048,000 Fair value 2,976,000 Costs to sell (costs of disposal) 24,000 Assume that Buffalo will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Buffalo uses the straight-line method of depreciation. Assume that Buffalo is a private company that follows ASPE. (a) (b) (c) The equipment's fair value at December 31, 2024, is $3.12 million. Prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date…