E9-2 (Algo) Part 2
Q: Indigo Co, sells $360,000 of 12% bonds on June 1, 2025. The bonds pays interest on December 1 and…
A: Bonds payable, also known as long-term debt or simply bonds, are a type of financial instrument that…
Q: Assume XYZ wishes to purchase a machine for $500k that will produce widgets which will sell for $50…
A: The break-even point is the level of sales or revenue where the total cost incurred in producing the…
Q: Prepare the journal entries through September 30, 2024, to record the issuance of the note,…
A: Notes Payable : Notes payable refers to a loan from a bank or any other financial institution…
Q: sh ccounts receivable (net) erchandise inventory Assets repaid expenses Equipment Accumulated…
A: Cash flow statement is one of the financial statements which helps in recognizing the sources of…
Q: Which asset of the insolvent is NOT excluded from insolvency proceedings? A. family home B.…
A: Insolvency is a financial state in which an individual or entity is unable to pay its debts as they…
Q: Wildhorse Corporation had the following transactions. 1. Sold land (cost $12,800) for $16,600. 2.…
A: To keep track of a business transaction, the business organization enters it in the journal. In…
Q: [The following information applies to the questions displayed below.] The county collector of Sun…
A: Journal entries are the primary step to record all the day to day transactions and events of the…
Q: Comprehensive Problem Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial…
A: Adjusting entries are passed at the end of the year to record the transactions and adjustments.…
Q: A merger between Minnie Corporation and Mickey Corporation is under consideration. The financial…
A: Earnings per share (EPS) is a financial ratio used to evaluate the profitability of a company on a…
Q: Graham is the sole shareholder of Logan Corporation. For the past five years, Logan has reported…
A: After the constructive dividend treatment, $300,000 is taxable income for Logan Corporation. The…
Q: Special Order Carson Manufacturing, Inc., sells a single product for $36 per unit. At an operating…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Concord Company uses a flexible budget for manufacturing overhead based on direct labor hours.…
A: FLEXIBLE BUDGET A flexible budget is a budget which is prepared for different levels of activity or…
Q: Subject:
A: Internal Rate of Return ( IRR ) = It is an instrument that helps in measuring the return on…
Q: General Mills, Inc. (the Company), is a global consumer foods company. The firm manufactures and…
A: A journal entry in accounting is a record of financial transaction that documents the debit and…
Q: 3. Evidence is generally considered appropriate when a. it has been obtained by random selection…
A: The main purpose of the auditor is to obtain or collect sufficient and appropriate evidence (such as…
Q: Recording Entries for Bonds with Warrants
A: Stock purchase warrants have characteristics similar to stock options in that they are issued by…
Q: Determining the Proceeds from Bond Issues Madison Corporation is authorized to issue $630,000 of…
A: A bond is a debt instrument issued by entities to raise capital from investors. The person issuing…
Q: ABC Company’s Accounts Payable on December 31, 2022, totaled P100,000 before any necessary year-end…
A: Accounts Payable refers to the money that a company owes to its suppliers or vendors for the goods…
Q: s inventory: ads inventory: uction: 40% of the next quarter's production requirements. 25% of the…
A: Quarter 1 Quarter 2 Six months Unit to be produced (a) 6,825 8,125 14,950 Direct material per…
Q: The taxpayer may have to file a Form 1099-MISC if he or she sold what amount or more of consumer…
A: 1099-MISC is a variant form which can be used to report the miscellaneous income such as prizes ,…
Q: Daryl Kearns saved $280,000 during the 25 years that he worked for a major corporation. Now he has…
A: Payback period is defined as the number of years required to recover the original cash investment.
Q: ACCEPT or REJECT (SPECIAL ORDER DECISION) XYZ Company produces and sells toy cars. Each toy car…
A: Relevant cost :— It is the cost that are different in different alternatives. This costs is used for…
Q: Cornerstone, Inc. has $130,000 of inventory that suffered minor smoke damage from a fire in the…
A: The cost that will be impacted by the selection is referred to as the relevant cost, which may be…
Q: [The following information applies to the questions displayed below.] Marfar Industries produces…
A: Return on investment :— It is calculated by dividing net operating income by average operating…
Q: amett Products manufactures three types of remote-control devices: Economy, Standard, and Deluse.…
A: Total Direct labor hours required = (10,400*2) + (5,400*2) + (2,400*2)…
Q: Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel…
A: Transfer price is the amount which is charged by another department for producing the goods and…
Q: Griffin's Goat Farm, Inc., has sales of $672,000, costs of $334,000, depreciation expense of…
A: A firm or individual's net income, commonly referred to as net profit, is a financial indicator that…
Q: Consider the following cash flow diagram. What value of C makes the inflow series equivalent to the…
A: The presentation of cash inflows and cash outflows in a diagram format is called a cash flow…
Q: Exercise 11-47 (Algo) Net Realizable Value Method (LO 11-3) Barrett Chemicals manufactures four…
A: Joint cost :— It is the cost incurred jointly in the manufacturing of joint products during the…
Q: 6. At the balance sheet date, Arlington Company reported the following balances. (All accounts have…
A: Liquidity ratios measure the abilities of the company to pay short term debt. Quick ratio is the…
Q: The following transactions were completed by The Wild Trout Gallery during the current fiscal year…
A: Allowance for doubtful accounts is a contra asset account, it is deducted from the accounts…
Q: During the past month, the following costs were incurred in the three production departments and two…
A: The reciprocal method is an algebraic method that is used for allocating the overhead expenses of…
Q: Wanda Instrumentation produces navigational equipment for ships, aircraft (both staffed and drones),…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead to cost…
Q: Exercise 7-14 (Algo) Comparison of Projects Using Net Present Value [LO7-2] Labeau Products,…
A: NET PRESENT VALUE Net Present Value is one of the Important Capital Budgeting Technique. Net…
Q: At January 1, 2024, M. E. Gainor Corporation had outstanding the following securities: 660 million…
A: Common shares are issued to business owners and other investors and have had the smallest claim on…
Q: PROBLEM 3-1 The following are STRESS Company equity accounts at December 31, 2020 Ordinary Share…
A: Share Premium is basically the excess recieved as above the par Value of share. It is the value that…
Q: Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral.…
A: The incremental revenues and incremental costs are taken together to calculate financial advantage…
Q: Recording Entries for an Installment Note Payable On January 1 of Year 1, a borrower signed a…
A: Written agreements called "notes payable" state that one party will give the other party a specific…
Q: Premium Company uses a standard cost system and reports the following information for 2024: (Click…
A: A transaction should be recorded in the books of accounts whenever a business event occurs that can…
Q: 10. ABC Company sold a delivery truck for cash of $10,700. The original cost of the truck was…
A: If the cash received at the time of sale of asset is more than the book value of an asset, then…
Q: Mary Jarvis is a single individual who is working on filing her tax return for the previous year.…
A: Taxable income means the base amount on which the government or the system of income tax imposes or…
Q: The following equity investment transactions were completed by Romero Company during a recent year:…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Mr. and Mrs. Lund and their two children (Ben and June) are the four equal partners in LBJ…
A: A partnership firm is one that is formed by two or more persons pooling their resources to start a…
Q: Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 640…
A: Answer:- FIFO method:- FIFO is a technique used in the computation of cost of goods sold to support…
Q: A company has to make a decision about expanding its production facilities. Research indicates that…
A: The current worth of a stream of payments from the investments, projects, etc is determined by…
Q: 2. Cost of goods sold is expected to be 75% of sales. 3. Company policy is to maintain ending…
A: An income statement refers to a statement showing the transactions of income and expenses during…
Q: Kolonas, Inc., sold equipment for $5,200 cash. The equipment cost of $74,100 and had accumulated…
A: DEPRECIATION EXPENSE Depreciation means gradual decrease in the value of an asset due to normal wear…
Q: 1. On November 1, 20X6, Merchant sold goods to a company located in Munich, Germany. The receivable…
A: A T-account is an informal term for a set of financial records that use double-entry bookkeeping.…
Q: Explain substantive tests of transactions and the meaning of this term? How does it apply to…
A: The correctness and completeness of financial transactions that take place within a corporation are…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: FLEXIBLE BUDGET A flexible budget is a budget that is prepared for different levels of activity or…
Bridge City Consulting bought a building and the land on which it is located for $145,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $15,000 for building renovations before it was ready for use.
E9-2 (Algo) Part 2
Required:
-
Prepare the
journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures (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 $50,000 2,700 750 958 1,500 2 Record the purchase of equipment.Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheetOn January 1, 2018, Absolutely Bar & Grill purchased a building, paying $57,000 cash and signing a $100,000 note payable. The company paid another $66,000 to remodel the building. Furniture and fixtures cost $56,000, and dishes and supplies—a current asset—were obtained for $8,600. All expenditures were for cash. Assume that all of these expenditures occurred on January 1, 2018. Absolutely is depreciating the building over 25 years using the straight-line method, with estimated residual value of $54,000. The furniture and fixtures will be replaced at the end of five years and are being depreciated using thedouble-declining-balance method, with a residual value of zero. At the end of the first year, the company still had dishes and supplies worth $1,900. Show what the company will report for supplies, plant assets, and cash flows at the end of the first year on its income statement, balance sheet, and statement of cash flows. Begin with the income statement.…
- Karl bought a building and the land on which it is located for $186,100 cash. The land is estimated to represent 65 percent of the purchase price. The company paid $33,100 for building renovations before it was ready for use. When preparing a journal entry to record all expenditures, the debit to Building would be: $_______On January 1, 2020, Sunland Company purchased land for an office site by paying $2680000 cash. Sunland began construction on the office building on January 1. The following expenditures were incurred for construction: Date Expenditures January 1, 2020 $ 1780000 April 1, 2020 2530000 May 1, 2020 4490000 June 1, 2020 4720000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3650000 was borrowed on January 1, 2020 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2020 was a $1400000, 12%, 6-year note payable dated January 1, 2020. Assume the weighted-average accumulated expenditures for the construction project are $4300000. The amount of interest cost to be capitalized during 2020 is $441750. $387000. $496500. $406500...On January 1, 20x1, POLICE POWER Co. received cash of P8,000,000 from a local government to be used in constructing a building. The construction was completed on December 31, 20x1 for a total cost of P20,000,000. The building will be depreciated using the straight line method over 20 years. Requirements: a. Provide the journal entries in 20x1 to 20x3 using (i) gross presentation and (ii) net presentation. b. Prepare a partial comparative statement of financial position and a partial comparative statement of profit or loss for 20x3, 20x2 and 20x1 using (i) gross presentation and (ii) net presentation.
- On January 1, 2018, Monster Bar & Grill purchased a building, paying $55,000 cash and signing a $107,000 note payable. The company paid another $61,000 to remodel the building. Furniture and fixtures cost $53,000, and dishes and supplies—a current asset—were obtained for $8,700. All expenditures were for cash. Assume that all of these expenditures occurred on January 1, 2018. depreciation information: Monster is depreciating the building over 25 years using the straight-line method, with estimated residual value of $59,000. The furniture and fixtures will be replaced at the end of five years and are being depreciated using thedouble-declining-balance method, with a residual value of zero. At the end of the first year, the company still had dishes and supplies worth $1,500. Show what the company will report for supplies, plant assets, and cash flows at the end of the first year on its income statement, balance sheet, and statement of cash flows. Begin with…7) Crass Spray Inc. (CSI) purchased equipment costing $60,000 on September 1, 2023. CSI made a $20,000 down payment and took out a loan for the remaining amount. Other cash expenditures related to this purchase included: Insurance during shipping: $500 Annual insurance policy: $2,400 Installation and testing costs: $600 Staff training costs on how to run the new equipment: $700 Required Determine the cost of the new equipment and record all required journal entries related to this equipment (you can ignore depreciation expense for the year).Assume that in January 20X6, a Hotcake House restaurant purchased a building, paying $57,000 cash and signing a $108,000 note payable. The restaurant paid another $60,000 to remodel the bui and fixtures cost $54,000, and dishes and supplies-a current asset-were obtained for $10,200. Hotcake House is depreciating the building over 20 years by the straight-line method, with estimate value of $55,000 The fumiture and fixtures will be replaced at the end of five years and are being depreciated by the double-declining-balance method, with zero residual value. At the end of the first restaurant still has dishes and supplies worth $1,900. Requirement 1. Show what the restaurant will report for supplies, PPE, and cash flows at the end of the first year on its. • Income Statement • Balance Sheet • Statement of Cash Flows (investing only) Note The purchase of dishes and supplies is an operating cash flow because supplies are a current asset. Requirement 1. Show what the restaurant will report…
- On January 1, 2022, Swifty Company purchased the following two machines for use in its production process. Machine A: Machine B: (a) 1. 2. Prepare the following for Machine A. (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) The cash price of this machine was $53,500. Related expenditures also paid in cash included: sales tax $2,600, shipping costs $100, insurance during shipping $120, installation and testing costs $80, and $150 of oil and lubricants to be used with the machinery during its first year of operations. Swifty estimates that the useful life of the machine is 5 years with a $4,200 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. 1. The recorded cost of this machine was $180,000. Swifty estimates that the useful life of the machine is 4 years with a $-9,100 salvage…Please answer the following question: Beaver Construction purchases new equipment for $45,360 cash on April 1, 2024. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no resale or scrap value at the end. Beaver depreciates equipment evenly over the 84 months ($540/month). Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of Accumulated Depreciation and Depreciation Expense (assuming the balance of Accumulated Depreciation at the beginning of 2024 is $0).Shahia Company bought a building for $88,000 cash and the land on which it was located for $111,000 cash. The company paid transfer costs of $16,000 ($8,000 for the building and $8,000 for the land). Renovation costs on the building before it could be used were $15,000. 8-3 Part 1 equired: Prepare the journal entry to record the purchase of the property, including all relevant expenditures. Assume that all transaction ere for cash and that all purchases occurred at the start of the year. ote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No 1 Transaction a Building Land Cash General Journal DHOL S Debit 5 — Credit Next Ⓒ
