Grandpa Clocks, Incorporated (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells a grandfather clock for $11,000 cash plus 4 percent sales tax. The clock had originally cost GCI $7,000. Assume GCI uses a perpetual inventory system. 1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign.) Assets Liabilities Stockholders' Equity
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- ! Required information [The following information applies to the questions displayed below.] Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover. a. What is Renee's adjusted taxable income for purposes of calculating the limitation on business interest expense? Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place. = Adjusted Taxable Income million! Required information [The following information applies to the questions displayed below.] Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover. a. What is Renee's adjusted taxable income for purposes of calculating the limitation on business interest expense? Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place. > Answer is complete but not entirely correct. $ 28.1 x million Adjusted Taxable IncomeFarmCo sold a tractor for $40,000 that they initially purchased for $30,000 cash from John Deere. How is the $30,000 journalized? Select an answer: as a credit to Assetsas a liabilityas revenueas cost of goods sold
- Bonnie Corp. sells a machine to a customer for $18,000 and uses the Installment Sales Method to account for the sale. The cost of the goods was $12,400. At the date of sale, Bonnie delivers the machine and receives $4,500, with the remainder being an installment account receivable for $13,500. How much gross profit should Bonnie recognize at the date of delivery? Do not use commas, dollar symbols (e.g. $), units or spaces in your answers. For example, one thousand five hundred and twenty-three dollars should be entered as 1523. If the Canvas system inserts a comma for you, don't worry about it.! Required information [The following information applies to the questions displayed below.] Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover. c. Suppose that Renee's revenue includes $5 million of business interest income. What is the maximum amount of business interest expense that could be deducted this year under the business interest limitation? Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places. X Answer is complete but not entirely correct. $ 4.32 x million Deductible Business Interest Expense! 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?
- H6. Denver Inc. has an old computer system. The computer originally costs Denver $90,000 and its current book value is $35,000. Answer the following questions: Do not use the account name of book value. There is no such account name as book value in accounting* 1) What is accumulated depreciation on the Denver's computer? 2) Journal entry if Denver discards the computer (for nothing). 3) Journal entry if Denver sells the computer for $90,000. Show proper calculationJada Company had the following transactions during the year. If all transactions were recorded properly, determine whether each transaction is capitalized or expensed. Choose: capitalized or expensed for 1-10. 1. Purchased a machine for $500,000 using a long-term note to finance it. [ Select ]["expensed", "capitalized"] 2. Paid $500 for ordinary repair. [ Select ]["expensed", "capitalized"] 3. Purchased a patent for $45,000 cash. [ Select ]["expensed", "capitalized"] 4. Paid $200,000 cash for addition to an existing building. [ Select ]["expensed", "capitalized"] 5. Paid $60,000 for monthly salaries. [ Select ]["expensed", "capitalized"] 6. Paid $2,500 for routine maintenance on equipment. [ Select ]["expensed", "capitalized"] 7. Paid $10,000 for extraordinary repairs. [ Select ]["expensed", "capitalized"] 8. Paid shipping of $1,000 to get the machine to the business. [ Select ]["expensed", "capitalized"] 9. Paid installation fees for the machine of…You sold $300,000 of accounts receivable to Friendly Factors Inc. on a with recourse basis. Friendly assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. You estimate that future uncollectible accounts total $15,000 1) How much cash will you receive as a result of the sale? 2) How much is the gain or loss on the sale? (indicate gain or loss) 3) The journal entry to record this sale should include which of the following? a) $18,000 DR to Due from Factor; b) $315,000 CR to accounts receivable; c) $ 15,000 DR to Recourse Obligation
- PLEASE SHOW SOLUTION IN GOOD ACCOUNTING FORM. 5. Crest Corporation established its Poblacion branch in 2019. Merchandise costing P120,000 is shipped to this branch. During the initial year, the home office acquires an equipment for P80,000 to be carried in the branch books, and the branch maintains physical possession and use. The equipment has a useful life of 4 years. The branch sells 60 percent of the inventory for P100,800 on account and subsequently collected half of the amount. The branch remits 80 percent in cash to the Home Office. What is the correct Home Office account balance on the records of the branch?Blossom Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. 2. 3. 4. 1. Prepare the appropriate journal entries for the above transactions for Blossom Corporation. (Round present value factors to 5 decimal places, e.g. 0.52587 and final answers to 2 decimal places, e.g. 52.75. 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.) 2. Truck #1 has a list price of $54,750 and is acquired for a cash payment of $50,735. Truck #2 has a list price of $58,400 and is acquired for a down payment of $7,300 cash and a zero-interest-bearing note with a face amount of $51,100. The note is due April 1, 2026. Blossom would normally have to pay interest at a rate of…Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?