Answered: Classify the following items into…

Classify the following items into capital and revenue. (a) $50,000 spent for railway siding. (b) Loss on sale of old furniture. (c) Carriage paid on goods sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Accounts Payable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment…

A: The phrase "exchange of assets without commercial substance" describes a scenario in which two…

Q: Study the following material and independent transactions below: Transaction 1 Dr…

A: a)Describe the transaction represented by the double entry:- Transaction 1:- Building is been sold…

Q: Using the following information, compute cash paid to purchase property, plant, and equipment.…

A: Business entities are required to charge the depreciation expenses on their assets so that the…

Q: Explain the below elements of cash outflows: a- Purchase of New Equipment. b- Investment in…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: apital & Revenue Expenditure Consider the following list of expenses incurred by a company:…

A: Capitalized cost of asset consists of acquisition cost of asset and other costs are incurred before…

Q: Indicate the effect each separate transaction has on investing cash flows. a. Sold a truck costing…

Q: Land costing $41,838 was sold for $87,212 cash. The gain on the sale was reported on the income…

A: Cash Flow Statement - Cash Flow Statement includes cash inflow and outflow from the organization.…

Q: Land costing $44,139 was sold for $74,050 cash. The gain on the sale was reported on the income…

A: Cash Flow is a financial statement that shows the extent of cash entering and leaving the…

Q: Un Company sold office equipment with a cost of $39,000 and accumulated depreciation of $34.976 for…

A: Book value of asset = Cost - Accumulated depreciationGain or Loss = Sale value - Book valueWhen an…

Q: Pharoah Limited exchanged equipment that it uses in its manufacturing operations for similar…

A: A journal entry must contain at least two line items, but there is no limit…

Q: If Marigold Imports Corporation realizes a gain of $96000 on a cash sale of a building having a book…

A: Investing activities are those activities which are associated with the purchasing/selling of fixed…

Q: Land costing $42,510 was sold for $70,453 cash. The gain on the sale was reported on the income…

A: Cash flow from sale of land = Land cost + Gain on sale of land

Q: A company presents the following. Profit before tax 100. Depreciations 40. Ingoing balance for…

A: Capital expenses are the amount of increase in the fixed assets that are being made by the company.

Q: The records of Ashley Boutique showed Net Loss, $30,000; Depreciation Expense, $25,000; and increase…

A: Statement of Cash Flows: Statement of Cash Flow is one of the main four financial statements,…

Q: For each statement in parts a to d, give a short answer or indicate True orFalse. a. Which of the…

A: Cash flows are the cash receipts and the payment the organization receives the given period of time.…

Q: The IRS rule for capitalizing a purchase is if it is over $2,500. But this is not necessarily the…

A: There is a rule through which company is not allowed to show those costs as expenses rather than…

Q: Presented here is information for Sheridan Company. Income tax expense Casualty loss plo of land…

A: Income statement is one of the financial statements that shows profitability, total revenue and…

Q: USING THE FOLLOWING DATA, CALCULATE THE DOLLAR AMOUNT ($) OF TOTAL INTANGIBLE ASSETS DEPRECIATION…

A: An Intangible assets is an identifiable non-monetary asset without physical substance. Some examples…

Q: 31 December 2020 and 31 December 2021: 2020 (RM) 2021 (RM) ASSETS: Freehold land 477,000 212,000…

A: Statement of cash flow is prepared to see the flow of cash in the company. It serves as cash book…

Q: The following additional information is available from the financial statements of Garfield…

A: Cash flow statement consists of three activities: Operating activities, investing activities and…

Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution…

A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization…

Q: Based on the following information, prepare a balance sheet. Current Assets = $15,000; Property,…

A: Balance Sheet :— It is one of the financial statement that shows list of final balances of assets,…

Q: A company is deciding whether to purchase a new machine or not, which among the following is not a…

A: A company is deciding whether to purchase a new machine or not is deiced by the Net present value of…

Q: Use the table for the ques Revenues -Cost of Goods Sold -Depreciation =EBIT -Taxes (30%) =Profit…

A: The discount rate that equates the cash stream's worth at present to the initial capital expenditure…

Q: Land costing $41,155 was sold for $77,036 cash. The gain on the sale was reported on the income…

A: The CFS (cash flow statements) of a company usually represent the flow of cash inside out of a…

Q: True or False: Cash recieved from the sale of salvaged materials increases the total cost of land.

A: Materials that are used are recycled for the purpose of reuse are salvaged materials. cash received…

Q: The following information is related to Vaughn Company for 2020. Retained earnings balance, January…

A: Multiple-step income statement: It is the more detailed statement for calculating the net income of…

Q: Which of the following transactions would reduce net income for the period and why?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic…

Q: On January 1, 2022, Indigo Corporation acquires a building at a cost of $120,000. The building is…

A: A journal entry is a record of a financial transaction that a company or organization has conducted,…

Q: a

A: There is Loss Incurred on Sell of Building.It means Selling Price is Less than Book Value.Selling…

Q: Sonesta Farm equipment Company sold equipment for cash. The income statement shows a loss on sale of…

A: Loss on Sale of Equipment: $7,000.-Net Book Value of the Equipment: $26,900.Type of Transaction:…

Q: If a machine whose original cost is ₹50,000 having accumulated depreciation ₹12,000, were sold for…

A: Cash received (inflow) is $44,000. Cash received from sale of machinery is investing activity.

Q: Proceeds from the sale of equipment by Perkins Nonprofit were $100. The equipment had a historical…

A: This question requires us to state the section or part of Indirect Method Cash Flow Statement which…

Q: Land costing $138,463 was sold for $175,514 cash. The gain on the sale was reported on the income…

A: Cash flow includes only the cash amount that is received or paid in the cash transaction.

Q: Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the…

A: MEANING OF CASH FLOW STATEMENT A statement which shows the cash outflow and cash inflow in an…

Q: Land costing $41,526 was sold for $79,878 cash. The gain on the sale was reported on the income…

A: Explanation that the land sold for an amount of $ 79,878 that should be reported as the investing…

Q: A machine with a cost of $175,000 and accumulated depreciation of $94,000 is sold for $87,000 cash.…

A: Cash flow from investing activities: It is a section of the cash flow statement that shows the cash…

Q: need help to determine the following; 3. For P & B Manufacturing to asses their asset management I…

A: Ratio analysis is quantitive method of getting inside review of an organisation. This make us able…

Q: Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted…

A: The cash flow statement is a valuable or important tool for financial analysis and decision-making.…

Question

Classify the following items into capital and revenue.
(a) $50,000 spent for railway siding.
(b) Loss on sale of old furniture.
(c) Carriage paid on goods sold.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. Accumulated depreciation of $30,000 existed at the time of the sale. What would be journal entry that should be made in the special revenue fund (in debit and credit form)?
Presented here is information for Sheridan Company. Income tax expense Casualty loss Loss from the sale of land Sales returns and allowances Interest revenue $15,000 Other expenses and losses $ 1,480 1,900 860 1,080 Sales revenue Rent expense Interest expense Dividend revenue Income tax payable Calculate the amount reported as "Other expenses and losses". 9040 $95,500 1,720 2,700 1,500 4,800
What is the total value of tangible assets that will be reflected in the balance sheet? Land 5,000 Building 40,000 Plant and Equipment 20,000 Commercial Vehicles 35,000 Accumulated Depreciation 30,000 $60,000 O $70,000 O $100,000 O $80,000
G company has an increase in its net fixed assets of $800. Depreciation = $140. How much did the company spend on net fixed assets? A source or use of cash? $800, source $800, use $940, source $940, use
Se.104.
Compute for Net Loss/Income, Capital Ending, Current Assets, Non-current Assets, Current Liability, Non-current Liability
Patterson Company’s Depreciation Expense is $20,400 and the beginning and ending Accumulated Depreciation balances are $150,200 and $155,200, respectively. What is the cash paid for depreciation?
Sir please help me sir urgently please
Land costing $40,631 was sold for $79,720 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?
Following information relate to Hawke Ltd for the financial year ended 2020 Information provided in the images. Additional information:The loss on sale of equipment relates to an item that originally cost $80 000 and had a carrying amount of $20000 when sold.Required: Calculate the following:(a) Cash collected from customers and Cash paid to suppliers (b) Cash paid to employees for wages and salary and Cash spent on plant and equipment (c) Proceeds from sale of equipment andCash paid for insurance
Explain properly. I Will give thumbs up
15. The Lucio Corporation presented the following balances from the historical peso income statement for the year ended December 31, 2018: Sales P350,000 Cost of goods sold Depreciation - building Depreciation - equipment All other expenses Other information include: 218,000 34,000 23,000 48,000 • Merchandise available for sale came from 2017 inventory of P28,750 and 2018 purchases of P220,000. Building costing P850,000 was acquired at the end of 2015. Equipment totalled P115,000, of which P85,000 was bought at the end of 2015 and P30,000 was bought at the end of 2017. • The company uses the FIFO method of inventory valuation; average indexes for the year are used in restating inventories. General price indexes at year end are as follows: 2015 - 100 2017 - 106 2016 - 102 2018 - 112 (assume that all changes in the general price level index tool place more or less evenly during the year.) What should Lucio Corporation report as net income for the year ended December 31, 2018 restated for…