Dec-31-14 Depreciation Mar-31-15 Impairment Mar-31-15 Depreciation Dec-31-15 Carrying amount € 4,000 (125) 3,875 (375) 3,500 (339) 3,161 Fair value Costs to sell Value in use € € 4,500 4,100 3,600 € 200 700 750 3,500
Q: Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the…
A: Depreciation is reduction in the value of asset due to its use, wear or tear.Salvage value which is…
Q: Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March,…
A: Production budget is the statement which is prepared by the entity for the purpose of determining…
Q: purchased a new car for use in be
A: Depreciation refers to the type of operating expenses that occur due to a decrease in the value of…
Q: 2023, Susan (44 years old) is
A: An IRA is a type of retirement account that enables you to save money for the future while deferring…
Q: Shelby Enterprises, LLC has the following costs for product Z: Type of Cost Amount Unit Direct…
A: The income statement can be prepared using various methods as variable and absorption costing. Using…
Q: When preparing an income statement based on marginal costing principles, inventory valuation…
A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all variable cost…
Q: Victor Co. owned 80% of the voting common stock of Wilson Co. On January 3, 20X2, Victor sold…
A: Depreciation is an accounting method used to reduce the book value of an asset over its useful life.…
Q: Exercise 10.9 (Algo) Accounting for Bonds Issued at a Premium: Issuance, Interest Payments,…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: What is the year-over-year revenue change percent? Use the attached financial data to calculate the…
A: HORIZONTAL ANALYSISHorizontal Analysis is one of the important analysis techniques for financial…
Q: Using the IFRS alternative method of valuing the noncontrolling interest, what amount of goodwill is…
A: Net identifiable assets (NIA) are defined as the total value of a company’s assets net of the value…
Q: Sparky Associates sells two licenses to Kim & Company on September 1, 2016. First, in exchange for…
A: The nature of the firm, the exact conditions of contracts, and the applicable accounting rules all…
Q: These items are taken from the financial statements of Mueller, Inc. Prepaid insurance .......... $…
A: The income statement is an account shows the net income or loss that includes the revenues earned…
Q: Which of the following statements are true regarding corporations? Note: You may select more than…
A: Corporations are frequently employed by medium to big firms because of their capacity to acquire…
Q: Thomas C. Company holds a 15% equity investment in Kayak Zone and treats it as a passive investment.…
A: An associate company is a company that holds a minimum of 20% of shares in another company. If the…
Q: Journalize the following transactions for Iron Sports Corp.: March 1 Iron Sports Corp. sold $64,200…
A: Perpetual inventory system is that system under which all transactions related to inventory are…
Q: Required information Problem 19-40 (LO 19-2) (Algo) [The following information applies to the…
A: Realized gain or loss is a financial concept that pertains to the difference between the purchase…
Q: Melody (single) had her home by the state condemned department of transportation. Her basis in the…
A: A taxable capital gain is a fiscal gain realized from the trade or disposition of a capital asset,…
Q: following information pertains to Capital Corporation: Net income $2,420,000 Average common equity…
A: The ratio analysis helps to analyze the Financial statements of the business on the basis of…
Q: e of the fixed manufacturing costs in the opening and closing inventories, using the absorption…
A: To calculate the value of the fixed manufacturing costs in the opening and closing inventories,…
Q: Alicia has been working for JMM Corporation for 37 years. Alicia participates in JMM's defined…
A: A defined benefit plan is a type of pension plan. Under this plan, the retirement benefits to the…
Q: Holmes Company has already spent $72,000 to harvest peanuts. Those peanuts can be sold as is for…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: mazin' 69 Corp. reports the following information for May: Information Amount Sales Revenue…
A: Income Statement: Income Statement, also known as a Profit and Loss (P&L) statement, is a…
Q: Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials:…
A: Variance arises when the actual costs differ from the standard costs. The results are favorable…
Q: #240,000; and June, $360,000. An analysis of oper Portion of Total Sales In month of sale: Cash at…
A: Cash collections is based on the total sales figure obtained from the sales budget. The management…
Q: California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $16 per share.…
A: The journal entries are prepared to record the transactions on regular basis. The treasury stock…
Q: On January 10 Donna Stark purchases merchandise from Baver Co. for $2,100 but does not pay in cash.…
A: Journal entries consist of all the business transactions. They are recorded in chronological order.…
Q: Problem 8-3A (Algo) Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had…
A: A petty Cash Fund is a small amount of cash that is often kept for day-to-day expenses of the…
Q: The following information is available from the Terry Company: Actual total factory overhead cost…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: DEN, Inc. has 1,000, $6, cumulative preferred shares issued at $100, and 50,000 common shares issued…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: Job Costs At the end of August, Carrothers Company had completed Jobs 50 and 56. Job 50 is for 200…
A: TOTAL COST The total cost of production including the materials, labor, and overhead costs. Unit…
Q: Ray Company provided the following excerpts from its Production Department's flexible budget…
A: Flexible budget performance report is the one which is prepared by the entity to compute the…
Q: How much will a shareholder receive in dividends if they own 5000 shares, the dividend is 20c per…
A: DECLARATION OF DIVIDENDSDividend is the amount paid by the Corporation its shareholders in return…
Q: IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred…
A: Bad Debt expense is a ledger used to record uncollectible accounts written off by the company. Those…
Q: Academic Dishonesty Investigations Ltd. operates a plagiarism detection service for universities and…
A: Journal entries are made to record the transactions as the first process in the books of accounts…
Q: Coolbrook Company has the following information available for the past year: Sales revenue Cost of…
A: The return on investment is used in evaluating the profitability using the metric for the…
Q: On June 1, Delaware Co. had one unit in beginning inventory that cost $10.00. During June, Delaware…
A: The various methods for inventory valuation are FIFO, LIFO and average method. Using FIFO, the older…
Q: Carla Vista Company owns equipment that cost $62.400 when purchased on January 1, 2022. It has been…
A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…
Q: aughn Company is constructing a buildi
A: We need to compute weighted average interest rate for computing interest on non specific borrowing.…
Q: S
A: Periodic inventory is when the stockcount is taken occasionaly to know the cost of goods sold and…
Q: Kingbird Inc. has recorded all necessary adjusting entries, except for income tax expense, at its…
A: Income Statement is a financial statement that includes revenue earned and expenses incurred during…
Q: Yellow Enterprises reported the following (S in thousands) as of December 31, 2024. All accounts…
A: Stockholder's Equity is a part of balance sheet. Under the section of Liabilities and Stockholder's…
Q: ummer Company sells a product with a contribution margin ratio of 54%. Fixed costs per month are…
A: The break-even sales are the sales where the business earns no profit or loss during the period. The…
Q: Bohol Mfg. Co. operates a single-department factory in the processing product. Assignment of unit…
A: Production reports are useful for management because they give insights into the production…
Q: Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and…
A: The joint costs are the costs that are incurred to produce two or more products. The costs can be…
Q: Pablo Company calculates the cost for an equivalent unit of production using process costing. Data…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Quick Copy purchased a new copy machine. The new machine cost $106,000 including installation. The…
A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…
Q: The following balance sheet information was provided by Western Company: Assets Cash Accounts…
A: Ratio analysis s helps to analyze the financial statements of the company. Management can make…
Q: Required information [The following information applies to the questions displayed below.] Purple…
A: A Statement of Cash Flow is a Financial statement that includes the inflow and outflow of cash that…
Q: Jupiter Manufacturing began business on January 1. During its first year of operation, Jupiter…
A: Total manufacturing cost is the total incurred in the manufacturing of product during the period. It…
Q: As a result of an allegedly defective equipment causing harm to an employee, an entity is facing a…
A: A contingent loss is a implicit unborn fiscal loss that may or may not do, depending on the…
Step by step
Solved in 3 steps
- VirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the time of the purchase, the patent had a remaining legal life of 10 years. In January, 2020, Maskless spent $100,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 3 years. VirusGo's year-end is December 31. By how much is amortization expense debited in 2017? By how much is amortization expense debited in 2020? What is the net carrying value of the patent on December 31, 2019?…VirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the time of the purchase, the patent had a remaining legal life of 10 years. In January, 2020, Maskless spent $100,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 3 years. VirusGo's year-end is December 31. By how much is amortization expense debited in 2017? By how much is amortization expense debited in 2020? What is the net carrying value of the patent on December 31, 2019?…Respond to the requirements in each situation. Instructions a. On January 1, 2020, Zarle Inc. sold computer equipment to Daniell Co. The sales price of the equipment was $520,000 and its carrying amount is $400,000. Record any journal entries necessary for Zarle from the sale of the computer equipment in 2020. b. Use the information from part a. Assume that, on the same day the sale occurred, Zarle enters into an agreement to lease the equipment from Daniell for 10 years with annual lease payments of $67,342.42 at the end of each year, beginning on December 31, 2020. If Zarle has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Zarle from the sale and leaseback of computer equipment in 2020. c. Use the information from part b. Now, instead of 10 years, the lease term is only 3 years with annual lease payments of $67,342.42 at the beginning of each year. Record any journal entries necessary…
- Hybrid dealers bought computer equipment for R54000 on 1 July 2018.The equipment is deprecated at 20% to the diminishing balance method. prepare the depreciation and closing transfer entries in the general journal of hybrid dealers on 31 March 2019 and 31 March 2020Sky Co., organized in 2017, provided you with the following information.1. Purchased a license for $20,000 on July 1, 2017. The license gives Sky exclusive rights to sell its services in the tri-state region and will expire on July 1, 2025.2. Purchased a patent on January 2, 2018, for $40,000. It is estimated to have a 5-year life.3. Costs incurred to develop an exclusive Internet connection process as of June 1, 2018, were $45,000. The process has an indefinite life.4. On April 1, 2018, Sky purchased a small circuit board manufacturer for $350,000. Goodwill recorded in the transaction was $90,000. 5. On July 1, 2018, legal fees for successful defense of the patent purchased on January 2, 2018, were $11,400.6. Research and development costs incurred as of September 1, 2018, were $75,000.Instructions(a) Prepare the journal entries to record all the entries related to the patent during 2018.(b) At December 31, 2018, an impairment test is performed on the license purchased in 2017. It is…During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.
- ! Required information [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2024. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, "/30. 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the net method of accounting for cash discounts is used. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the net method of accounting for cash…Prepare the journal entries for Sunland in 2017. Sunland Windows manufactures and sells custom storm windows for three-season porches. Sunland also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sunland enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,490 and chooses Sunland to do the installation. Sunland charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $590. The customer pays Sunland $1,950 (which equals the standalone selling price of the windows, which have a cost of $1,110) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Sunland completes installation on October 15, 2017, and the customer pays the…A company purchased a machinery on 2010 for a sum of OMR.45,000. The retail price index on that date stood at 150. You are required to restate the value of the machinery according to CPP Method on 31st December, 2019 when the price index stood at 250. a. OMR 85,000 b. OMR 75,000 c. OMR 74,500 d. OMR 45,555
- Required information Skip to question [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2024. The units have a list price of $650 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30. Required: Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024,In 2025, Culver determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2026. Prepare all journal entries required in 2025 and 2026. (Credit account titles are automatically indented when 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 Account Titles and Explanation Debit CreditAt the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.