Disposition of Assets: Journalizing Mitchell Parts Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Motor #12, which had a cost of $2,800 and accumulated depreciation of Jan. 1 $2,800, was discarded. Motor #8, which had a cost of $4,400 and accumulated depreciation of $4,000, 8. was sold for $200. Motor #16, which had a cost of $5,600 and accumulated depreciation of 14 $5,400, was sold for $450. 2. Assets exchanged or traded in: 1 Motor #6, which had a cost of $6,000 and accumulated depreciation of $4,800, was traded in for a new motor (#22) with a fair market value of $7,000. The old motor and $5,600 in cash were given for the new motor. ° Motor #9, which had a cost of $5,500 and accumulated depreciation of $5,000, was traded in for a new motor (#23) with a fair market value of $6,500. The old motor and $6,200 in cash were given for the new motor.
Q: As manager of the St. Cloud Theatre Company, you have decided that concession sales will support the...
A: \Given below is the information of the question: SOFT DRINK WINE COFFEE CANDY Selling price 1...
Q: eto ABC Con coupo bag of dog TOod it sells. return for eight coupons, customers receive a leash. The...
A: The correct calculation answer for the above question is given in the following steps for your refer...
Q: 31, 2021, Max Company committed to a plan to discontinue the fair value of the facilities was P1,000...
A: The loss from discontinued operations will include operating loss from operations and unrealized los...
Q: During 2020, Maine Company Sold 50,000 boxes of hotcakes under a new sales promotional program. Each...
A: Total estimated coupons that should be redeemed = 50,000 boxes ×80% = 40,000
Q: On January 2, 20x1, Paul Corp. acquired 20% ownership interest in Simon Corp. for P1,350,000 and the...
A: Goodwill in Consolidation In the consolidation process the calculation of goodwill is the total cons...
Q: A company has return on sales of 15% at sales of $400,000. Its fixed cost are $90,000; variable cost...
A: Solution.. Return on sales = 15% Sales = $400,000 Fixed cost = $90,000 Variable cost = $25 per ...
Q: On February 1, 20x1, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The in...
A: GIVEN On February 1, 20x1, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash...
Q: A company made a $500 ordinary repair to a piece of equipment. The accountant debited this amount to...
A: The costs incurred on fixed assets should be capitalized only if the benefits of such costs will inc...
Q: Company XY Sales are 6 800 000 € and fixed costs are 2 400 000 €. Variable costs are 4 284 000 €. Ca...
A: Contribution margin = Sales - Variabl costs Contribution margin % = Contribution margin / Sales
Q: Problem IV Victor Company operates a branch in Cebu. Selected accounts were taken from December 31 b...
A: Branch Accounting: It is the method of accounting where separate books are maintained for each branc...
Q: Sweet Tooth Candy Company has computed the net present value for capital expenditure at two location...
A: The question is based on the concept of Financial Management.
Q: s in the form of money orders. Assuming en the company books and the bank bala d the company report ...
A: Cash Balance in the balance sheet will include cash , cash at bank and investments that can be readi...
Q: On January 1, 2020, Edison Co. issued eight-year bonds with a face value of P 2,000,000 and a stated...
A: Solution: Bonds are the debt instruments issued by entity to obtain funding. Bonds are having define...
Q: The current sections of Crane Inc.’s balance sheets at December 31, 2021 and 2022, are presented her...
A: Statement of cash flow can be known as a statement which helps stakeholders like investors, customer...
Q: The balance in the supplies account on June 1 was $5230, supplies purchased during June were $3480, ...
A: Formula: Supplies expense = Beginning supplies + Supplies purchased - Ending Supplies
Q: Required Information (The following information applies to the questions displeyed below) Selected c...
A: A common size income statement is an income statement in which each line item is expressed as a perc...
Q: what are some examples of internal controls? How are internal controls related to the Sarbanes-Oxley...
A: Internal Control: In an organization, internal control is a procedure carried out by the entity's bo...
Q: Which of the following statement is incorrect? * a. Trade payable are classified as current liabili...
A: Current Liability: Current liabilities are commitments or debts owed by a company that is due within...
Q: On December 31, the balance in the office supplies account is $1,235. A physical count shows $490 wo...
A: Balance in supplies account = $1235 Physical count = $490 Supplies expenses = 1235-490 = $745
Q: Journalize the inception of the lease and the first payment made by PMA in the books of GP (Lessee) ...
A: Lease liability refers to obligation of the company requires to pay periodic lease payment on the le...
Q: A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilitie...
A: Current ratio = Current Assets / Current Liabilities Quick Assets = Quick Assets / Current Liabiliti...
Q: Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a bask...
A: The correct answer calculation is given in the following steps for your reference.
Q: 2. Analyze the statement of financial position for the year 2020 and compare it with the year 20...
A: Consolidated statement of financial position is a statement which depicts the resources owned by the...
Q: Which of the following is not an operating activity?
A: ANSWER Option B is correct = payment of cash dividend Explanation Payment of cash dividend is an f...
Q: Prepare Trading and Profit and Loss A/C for the year ending 31* March 2020 and a Balance Sheet as on...
A: Trading Account is a financial statement that shows the result of buying and selling goods and servi...
Q: QUESTION 3 On January 1, 2016, a company placed into capitalized cost of $1,200,000. The equipme $30...
A: Introduction:- Straight line method:- It is simple method of depreciation. In this method same amoun...
Q: The Tolar Company has 400 obsolete desk calculators that are carried in inventory at a total histori...
A: Opportunity costs = Revenue from sale of upgraded calculator - Additional costs
Q: Vertical Analysis of Balance Sheets Consolidated balance sheets for Winged Manufacturing follow. ...
A: In preparing common size balance sheet for vertical analysis, each item is represented as a percenta...
Q: Beginning inventory, 100 units @P1.50; purchases: Jan 24 – 300 units @P1.56 Jun 11...
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...
Q: Which of the following information should be disclosed in the summary of significant accounting poli...
A: Significant accounting policies are the policies used in preparation and presentation of financial s...
Q: Liquidity ratio Josh Smith has compiled some of his personal financial data in order to determine hi...
A: The correct answer for the above question is given in the following steps for your reference.
Q: QUESTION 7 In computing depreciation, salvage value is a. the fair value of a plant asset on the dat...
A: Salvage Value of an asset is the estimated realizable value from the disposal of the asset at the en...
Q: On January 1, 2020, Gold Company entered into a 5-year lease of a floor of a building with the follo...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Requlred Informatlon Use the following information for the Exercises below. [The following informati...
A: 1. Depreciation- Depreciation is calculated to capture the wear and tear of the assets for the purpo...
Q: Analyze the statement of cash flow for the year 2020 and compare it with the year 2019. Identify and...
A: The cash flow statement can be used to analyze the financial health of an entity. The three importan...
Q: On January 1, 2020, Resty Company issued bonds with the face amount of P 10,000,000, 8% serial bonds...
A: Annual interest payment = Face value of bonds x stated rate of interest x no. of months/12 Annual in...
Q: Camp Rainbow offers overnight summer camp programs for children ages 10–14 every summer during June ...
A: Variable operating cost per child=(Highest activity cost-Lowest activity cost)(Highest activity unit...
Q: On January 1, 20x1, Puno Inc. acquired 80% interest in Dong Company. During 20x2, Puno and Dong repo...
A: Business combination refers to the agreement or contract between two companies in which a company ob...
Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of S950,000. ...
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: Prepare the production budget of Masks and More Enterprises using the format below. (30 points)
A:
Q: 1. How much is the total amount of uncollectible accounts receivable? 2. How much is the total am...
A: Account receivable (AR) means the debtors/customers of the company whom they sold goods on credit. A...
Q: Ji Hyun's generous grandfather invests $1,000 when she is born into an index fund that produces a 7%...
A: Calculation of money will be in account.
Q: assume informotion similar to that inthe do it on the page 207 that is on septemper 5 de lahoya comp...
A: A journal entry is the first process in the accounting process. It is used to record a business tran...
Q: Boyce Company purchased office swupplies costing $7.000 and debited Supplies for the ful amount. At ...
A: the journal entry for correct option are as follows.
Q: During 2020, Lomi, Co.filed suit against Ocean, Inc seeking damages for patent infringement. At Dece...
A: Contingent asset refer to such assets whose existence is uncertain because it is dependent of happen...
Q: urnal entries for Damle d Do not Indent manuall
A: Damien Jurado purchased an insurance policy for 2 years on 1st July 2022. Since the policy has been ...
Q: What is the total non-controlling interest in net income of subsidiary (NCINI5) on Dec 31, 20x5?
A: As per our protocol, we provide the solution to the one question only but as you have asked two mult...
Q: Can you help me with this question
A: The question requires entry on March 1 and March 20 March 1 : The day fund was established March 20 ...
Q: Journal Entries: Repairs, Maintenance, Additions, Improvements, and Replacements Prepare the entries...
A: Solution Concept The expenses incurred if they improve the efficiency and provide the future economi...
Q: Inter Company was founded in Dec 2018. Inter Company provides sports services to customers. During m...
A: T-accounts are created by posting transactions to their respective accounts and then calculating the...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- DISPOSITION OF ASSETS: JOURNALIZING Mayer Delivery Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Jan. 1 Van #11, which had a cost of 8,800 and accumulated depreciation of 8,800, was discarded. 8 Van #7, which had a cost of 9,400 and accumulated depreciation of 9,000, was sold for 200. 14 Van #13, which had a cost of 7,600 and accumulated depreciation of 7,400, was sold for 250. 2. Assets exchanged or traded in: Feb. 1 Van #8, which had a cost of 11,000 and accumulated depreciation of 8,800, was traded in for a new van (#20) with a fair market value of 13,000. The old van and 10,500 in cash were given for the new van. 9 Van #3, which had a cost of 7,500 and accumulated depreciation of 7,000, was traded in for a new van (#21) with a fair market value of 9,500. The old van and 9,200 in cash were given for the new van. REQUIRED Prepare general journal entries for the transactions.During the current year, Yost Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Depreciation Asset Machine A Machine B Original Cost Residual Value Estimated Life $33,000 $3,000 12 years 16,800 10 years Machine C 5,100 17 years 140,000 75,600 (straight line) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,500 cash. $25,000 (10 years) 98,560 (8 years) 49,765 (12 years) b. Machine B: Sold on December 31 for $54,120; received cash, $43,296, and an $10,824 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. P8-5 Part 1 Required: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b.…During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $84,200 $9,000 15 years $65,173 (13 years) Machine B 28,000 3,600 8 years 18,300 (6 years) The machines were disposed of in the following ways: Machine A: Sold on January 2 for $28,000 cash. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
- Journal Entries: Disposition of Plant Assets 1. Discarding an asset. On January 4, shelving units, which had a cost of $6,360 and had accumulated depreciation of $5,790, were discarded. On June 15, a hand cart, which had a cost of $1,430 and had accumulated depreciation of $1,310, was sold for $120. On October 1, a copy machine, which had a cost of $7,740 and had accumulated depreciation of $7,250, was sold for $550. If an amount box does not require an entry, leave it blank. Prepare the entries for the transactions using a general journal. 2. Exchange or trade-in of assets. On December 31, a drill press, which had a cost of $59,990 and had accumulated depreciation of $48,910, was traded in for a new drill press with a fair market value of $74,250. The old drill press and $65,170 in cash were given for the new drill press. On December 31, the old drill press in (a) and $60,430 in cash were given for the new drill press. If an amount box does not require an entry, leave it blank.…Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 35,000 $ 3,800 6 years $ 26,000 (5 years) Machine B 67,200 4,200 12 years 47,250 (9 years) The machines were disposed of in the following ways: Machine A: Sold on January 1 for $9,200 cash. Machine B: On January 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original. Cost $56,000 15,200 The machines were disposed of in the following ways: View transaction list N a. Machine A: Sold on January 2, for $34,500 cash. b. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). No 1 Required: 1.82. Prepare the journal entries related to the disposal of Machine A and Machine B on January 2 of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2 3 4 Residual Value. $10,500 2,400 Date January 02 Estimated Life View Journal entry worksheet January 02 January 02 January 02 7 years 5 years. No Journal Entry Required Accumulated Depreciation (straight-line). $26,000 (4 years) 7,680 (3 years) General Journal Cash Accumulated Depreciation-Equipment Gain on…
- Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Depreciation (straight-line) Original Cost $36,000 72,200 Residual Value Estimated Life $4,300 5 years $25,360 (4 years) 5,000 15 years $53,760 (12 years) The machines were disposed of in the following ways: Asset Machine A Machine B a. Machine A: Sold on January 1 for $11,000 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Date Note: Enter debits before credits. 3 Record the current year depreciation for Machine A prior to disposal. 4 General Journal Debit Credit >> Equipment was acquired at the beginning of the year at a cost of $77,880. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,500. a. What was the depreciation expense for the first year? b. Assuming the equipment was sold at the end of the second year for $58,800, determine the gain or loss on the sale of the equipment. c. Journalize the entry for the sale. If an amount box does not require an entry, leave it blank. ?Equipment was acquired at the beginning of the year at a cost of $612,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $44,360. a. What was the depreciation for the first year? Round your answer to the nearest cent. 63,127 b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $102,987. Round your answer to the nearest cent and enter as a positive amount. $4,517 Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
- Equipment was acquired at the beginning of the year at a cost of $287,100. The equipment was depreciated using the straight-line method based on an estimated useful life of nine years and an estimated residual value of $27,000. a. What was the depreciation for the first year?$fill in the blank b. Assuming the equipment was sold at the end of the fifth year for $138,700, determine the gain or loss on the sale of the equipment. Enter your answer as a positive amount.$ fill in the blank - loss or gain c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. debit credit blank Cash $ fill in blank $fill in blank Accumulated Depreciation-Equipment $fill in blank $fill in blank Loss on Sale of Equipment $fill in blank $fill in blank equipment $fill in blank $fill in blankDuring the current year, Fortini Company disposed of three different assets. The company's accounts reflected the following on January 1 of the current years, prior to the disposal of the assets: Accumulated Depreciation (straight line) $15,750 (7 years) Original Residual Asset Machine A Machine B Machine C Cost $21,000 50,000 Value $3,000 4,000 75,000 3,000 Estimated Life 8 years 10 years 12 years 36,800 (8 years) 60,000 (10 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 of the current year for $5,000 cash. b. Machine B. Sold on April 1 for $10,500; received cash, $2,500, and a note receivable for $8,000, due on March 31 of the following year, plus 6 percent interest. c. Machine C: Suffered irreparable damage from an accident on July 2. On July 10, a salvage company removed the machine at no cost. The machine was insured, and $18,000 cash was collected from the insurance company. Required: 1. Prepare all journal entries related to the…Equipment was acquired at the beginning of the year at a cost of $75,000. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,500. a. What was the depreciation expense for the first year? $4 11,250 b. Assuming the equipment was sold at the end of the second year for $59,000, determine the gain or loss on sale of the equipment. Gain Feedback V Check My Work Partially correct c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash 7,500 Accumulated Depreciation 67,500 X 11,250 Equipment 75,000 Gain on Sale of Equipment