Tamarisk, Inc. has equipment that cost $79,900 and that has been depreciated $50,500. Record the disposal under the following assumptions. (a) (b) (c) It was discarded with no cash received. It was sold for $23,800. It was sold for $32,100. (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 0 for the amounts.) No. Account Titles and Explanation (a) Debit. Credit
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- Prepare the necessary journal entries to record the following transactions in 2014 for the Blue Spruce. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Discarded old store equipment that originally cost $28,500 and had a book value of $5.928 on the date of disposal Depreciation on the equipment has already been recorded for the current year. Jan. 11 Sold a delivery truck for $9,576, The delivery truck originally cost $60,420 and had accumulated depreciation of $52,440 on the date of sale. The depreciation on the truck has already been recorded for the current year. Mar 6. Straight-line depreciation is recorded for the first quarter of 2014 on equipment with a 4-year useful life that was purchased on January 1, 2012 for $31.236 with an estimated salvage value of $3.876. Mar. 31 May. Incurred…Required: Post the rectification entry for each of the above errors. Question five: Rectify the following errors: 1. Other income received of Tshs880,000 was correctly recorded in the cash book, but was debited to the other income account. 2. Cash paid for wages of Tshs9.6 million was posted to the wages account as Tshs6.9 million. 3. The purchases day book was overcast by Tshs2 million. 4. The sales day book was undercast by Tshs6 million. 5. The cash book credit side was undercast by Tshsl.3 million. 6. The prepaid expense account debit side was undercast by Tshs0.6 million. 7. A sale of Tshsl.5 million was fully credited to the sales account. However, sales tax of Tshs0.5 million was included in it. 8. A building purchased for Tshs60 million was entered in the building account as Tshs50 million. The company charges 2% depreciation. 9. Repairs to machinery of Tshs5 million were capitalised and a depreciation of 5% was charged on it. Question six: How much will appear in the suspense…Which of the following errors would not affect net income?A. Post-dated checks are classified as cash upon receipt from customersB. Purchases on account are unrecorded because the goods are still in transit : butthe goods were included in inventoryC. Depreciation expense was recorded twice for the same yearD. The client charged an ordinary repair as part of equipment cost.
- Buttercup Florist uses the allowance method to account for uncollectible accounts. Unable to collect a $150 account from a customer, Buttercup determined it was uncollectible. Which of the following statements is correct regarding the effect of writing-off a receivable? Multiple Choice The net realizable value of receivables and total assets remains unchanged. The net realizable value of receivables and total assets decrease. The net realizable value of receivables and total assets increase. The net realizable value of receivables decreases, and total assets increase.Buttercup Florist uses the allowance method to account for uncollectible accounts. Unable to collect a $150 account from a customer, Buttercup determined it was uncollectible. Which of the following statements is correct regarding the effect of writing-off a receivable? Multiple Choice O O The net realizable value of receivables decreases, and total assets increase. The net realizable value of receivables and total assets remains unchanged. The net realizable value of receivables and total assets decrease. The net realizable value of receivables and total assets increase.A. Amina Importers Sdn. Bhd. is involved with importation of canned products and general trading. The Statement of Financial Position prepared by the accounts clerk is as follows: Amina Importers Sdn. Bhd. Statement of Financial Position as at 31 December 2020 RM RM RM Cost Accumulated Net Book Depreciation Value Non-current assets Premises 500,000 (100,000) 400,000 Fixtures and fittings 300,000 (50,000) (50,000) 250,000 Motor vehicles 192,000 142,000 792,000 Current Assets Inventory 200,000 160,000 Accounts receivables Bank 130,000 490,000 1,282,000 Owner's Equity Сapital 800,000 Add: Net profit 123,000 Less: Drawings |(21,000) 902,000 Non-current Liabilities Loan from Progressive Bank Berhad 278,000 Current Liabilities Accounts payable Accrued expenses 82,000 20,000 102,000 1,282,000
- Recently, $20 000 cash was stolen from Fremantle Ltd’s night safe. Explain how Fremantle should account for this event, justifying your answer by reference to relevant conceptual framework definitions and recognition criteria. Required: What aspects of the conceptual framework might help you in deciding the appropriate accounting for this situation?Roe's Renovations utilizes the direct write-off method of accounting for uncollectible receivables. On September 15 the company is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation. Write off the $4,900 of accounts receivable due from Jacob Marley. If an amount box does not require an entry, leave it blank.Cullumber Corporation shipped $21,600 of merchandise on consignment to Oriole Company. Cullumber paid freight costs of $2,000. Oriole Company paid $450 for local advertising, which is reimbursable from Cullumber. By year-end, 59% of the merchandise had been sold for $19,900. Oriole notified Cullumber, retained a 9% commission, and remitted the cash due to Cullumber. Prepare Cullumber's journal entry when the cash is received. (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 all debit entries before credit entries.) Account Titles and Explanation Debit Credit
- Fred's trial balance did not balance so he opened a suspense account with a debit balance of $346. Control accounts are maintained for receivables and payables. Fred discovered the following: 1 The sales day book was undercast by $400. Purchases of $520 from the purchases day book have only been recorded in the payables ledger control account. 2 3 Profit on sale of non-current assets of $670 had been recorded in the sundry income account as $760. What is the remaining balance on Fred's suspense account after these errors have been corrected?|The Petty Cash Box has 3 vouchers in it (one for taxi fare in the amount of $25, one for courier charges of $18 and one for office treats bought at Tim Hortons for $35). The accountant forgets to make a replenishment entry prior to generating the financial statements for the period. The financial statement implications of this are that: Multiple Choice None of the other options is correct Income is correctly stated but assets are understated by $78 No Implications as the replenishment can occur anytime and is Independent of financial statement generation There is not enough Information provided to assess financial statement Impact Net Income is understated by $78c. Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (Disregard the date.) Date Description Date d. The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection. (Disregard the date.) Description Debit Debit Credit Credit