FarmCo sold a tractor for $40,000 that they initially purchased for $30,000 cash from John Deere. How is the $30,000 journalized?
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FarmCo sold a tractor for $40,000 that they initially purchased for $30,000 cash from John Deere. How is the $30,000 journalized?
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as a credit to Assets
as a liability
as revenue
as cost of goods sold
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- ! Required information [The following information applies to the questions displayed below.] Turtle Creek Partnership had the following revenues, expenses, gains, losses, and distributions: Sales revenue Long-term capital gains Cost of goods sold Depreciation-MACRS Amortization of organization costs. Guaranteed payments to partners for general management Cash distributions to partners $ 65,500 $ 4,800 Ordinary income (loss) $ (22,100) $ (7,900) $ (1,240) $ (15,600) $ (3,600) a. Given these items, what is Turtle Creek's ordinary business income (loss) for the year?On 1/1, the CIF Farm bought equipment by paying $8,000 cash. They also incurred a freight and taxes of $485 to get the equipment to their farm. The market value of this equipment is $12,000. What amount should be recorded in the equipment account on 1/1? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 ASUS f3 f4 f5 f7 f8 f9 f10 f11 f6 X 3 4. 8. 01 E Y 6 5 立 图 %24The following information was taken directly from the footnotes to the financial statements ofBest Buy:1. “We recognize revenue at the time the customer takes possession of the merchandise.”2. “We sell gift cards to customers and initially establish an Unredeemed Gift Card Liability forthe cash value of the gift card.”3. “Advertising costs are recorded as expenses the fi rst time the advertisement runs.”4. “We compute depreciation using the straight-line method.”a. Discuss what is meant by each of the above footnote items.b. As noted, Best Buy uses a Unredeemed Gift Card Liability account to record the sale of giftcards. Assume that you purchase a $500 gift card from Best Buy as a birthday present for afriend. Prepare the journal entries made by Best Buy to record (1) your purchase of the giftcard and (2) the use of the gift card by your friend to purchase a $500 television.c. Discuss how the matching principle relates to Best Buy ’s treatment of advertisingexpenditures.
- Do not copy from bartleby Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000. The journal entry to record this transaction in the accounting records of the purchaser includes:a)A credit to Land for $40,000.b)A debit to Cash for $40,000.c)A debit to Land for $170,000.d)A debit to Note Payable for $130,000.Identify the letter for the principle or assumption from A through F in the blank space next to situation that it best explains or justifies: _________If $51,000 cash is paid to buy land, the land is reported on the buyer’s balance sheet at $51,000.Jane Jones has applied for a mortgage loan from the Bank of Mississippi. The bank requested from you an appraisal of the property using the sales comparison approach. (4 points) Elements of Comparison Sales Price of Comparable Transaction Adjustments Property rights conveyed Financing terms Conditions of sale Expenditure inmed. after purchase Market Condition (Sale date Months Prior) Adj. for market conditions (Months Prior Sale Subject Comparable 1 Comparable 2 Comparable 3 $176,000 $172,000 $163,000 Fee Simple Same Same Same Conventional Same Same Same Arms Length Same Same Same None None None: None Today 0 4 12 Adjusted price: Current Market conditions indicate an increase in property value of 0.25% per month. Answer in the space provided the following questions to fill in the highlighted areas of the appraisal 1. Put in the value adjustments for the market conditions in order from left to right, as if they were in each comparable sale column for 1, 2, and 3 with the appropriate +…
- 1) if service revenue this week is $500 record service revenue. 2) if cash $300 and record a debit to cash and a credit to unearned revenue. long term asset - $10,000 3) Your largest long term asset you trade with another company for a simliar but newer asset. Before you can record the exchange you must first record depreciation on your asset. Use the sum of years' digits method to caluclate your depreciation. If you are trading equipment, the useful life is 15 years, if a building (Plant), the useful life is 30 years and for both there is no salvage value. Whatever the book value is of your asset on the day of trade, you pay an additional 10% of the value in cash as you are now in ownership of a newer asset.9. AB Company sells machinery for $10,000. They originally purchased it for $15,000 and have depreciated $10,000. Complete the journal entry for the sale Account Debit CreditXYZ (Pty) Ltd carries on a manufacturing business and asks that you calculate the VAT payable or refundable to it, during the VAT period, based on the following information. All amounts are inclusive where applicable: Sales of inventory Sale of fixed assets Rental received from letting residential house Consulting fee Interest received Purchase of materials Rent paid Wages paid Bad debts Required: 3.1 228 000 57 000 4 000 114 000 33 600 102 600 10 260 55 000 42 000 Calculate the VAT payable to or refundable from SARS assuming a VAT rate of 14%
- Intel purchases land. Information related to this transaction is following: Purchase cost of land $ 180,000 Property taxes due on the land 5,000 Title and attorney fees 2,000 Cost of cleaning the land 4, 400 Cost of paving a parking lot 20, 000 Sales taxes on the transaction 1, 000 What amount does Intel record as the cost for the land? Group of answer choices $187, 400 $192, 400 $211, 400 $180,000In the year ended 31 December 20X7 Bobby traded in for £3,430 a vehicle costing £6,000 on 1 November 20X5 against the cost (£4,800) of a replacement vehicle. The balance due for the new vehicle has been paid in cash and debited to the cost of vehicles account and credited to cash at bank. What net adjustment is required to the company's cost of vehicles account as a result of this transaction?a. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity?b. Assume that the seller owes $80,000 on a loan for the land. After receiving the $298,000 cash in (a), the seller pays the $80,000 owed. What is the effect of the payment on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity?c. Is it true that a transaction always affects at least two elements (Assets,Liabilities, or Owner’s Equity) of the accounting equation? Explain.