Answered: Required: 1. What is the book value of…

Required: 1. What is the book value of the equipment after installation? Book value of the equipment after installation $ 519,800 X

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5EB: Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On...

See similar textbooks

Similar questions

Chicago Heights company has 2 year contract to construct a warehouse. The contract value is 2949 and the estimated total cost is 1156. During the next 2 years, the costs are incurred as follows and the project is completed by the end of second year. Contract data Year for the year 2019 for the year 2020 Cost incurred 867$ 851$ Required Make the recognition of revenue, expenses and profits for 2020. Type in the profit value without using the currency sign and separators.
O'Connor Company ordered a machine on January 1 at a purchase price of $95,000. On the date of delivery, January 2, the company paid $24,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $1,000 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $5,700. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $10,200. Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the…
O'Connor Company ordered a machine on January 1 at a purchase price of $100,000. On the date of delivery, January 2, the company paid $25,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $1,000 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $6,000. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $10,700. Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the…
On October 31, Year 1, Trailer Homes Company (THC) determines that it will need to buy 175,000 lbs, of aluminum siding panels on April 30, Year 2. In order to hedge the risk that the price of the aluminum siding panels will increase in six months the Treasurer simultaneously takes a long position in an aluminum forward contract, where the company agrees to purchase 175,000 lbs, of aluminum for $3.756/lb. on April 30, Year 2. The prices for the aluminum siding panels and the aluminum forward are as follows. Aluminum Siding /lb. Aluminum Forward/Ib. October 31, Year 1 $5.390 $3,756 January 31, Year 1 $5.552 $3. 881 $5.768 $3.925 April 30, Year 2 inanols on
O’Connor Company ordered a machine on January 1 at a purchase price of $40,000. On the date ofdelivery, January 2, the company paid $10,000 on the machine and signed a Iong-term note payablefor the balance. On January 3, it paid $350 for freight on the machine. On January 5, O’Connor paidcash for installation costs relating to the machine amounting to $2,400. On December 31 (the endof the accounting period), O’Connor recorded depreciation on the machine using the straight-linemethod with an estimated useful life of 10 years and an estimated residual value of $4,750.Required:1. Indicate the effects (accounts, amounts, and 1 or 2 ) of each transaction (on January 1, 2, 3,and 5) on the accounting equation. Use the following schedule:Date Assets 5 Liabilities 1 Stockholders’ Equity2. Compute the acquisition cost of the machine.3. Compute the depreciation expense to be reported for the first year.4. What should be the book value of the machine at the end of the second year?
Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was financed through a $10,000 note with the remainder paid in cash. The vendor charged an additional $400 for shipping, on account. Levchenko paid a moving company $700 cash to move the inventory to a different warehouse. Interest on the note totaled $50, payable in August. a. Determine the cost to be assigned to the inventory. $ b. Record the transactions using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction a. Inventory purchase b. Shipping charge c. Moving cost d. Interest incurred Totals Cash Asset ♦ ◆ ◆ ◆ 0 + Noncash Asset ◆ ◆ ◆ ◆ 0 Balance Sheet Liabilities ◆ ◆ ◆ 0 Contributed + Capital + Earned Capital ♦ ◆ ♦ ♦ 0 Revenues Income Statement Expenses ◆ ◆ ◆ 0 Net = Income 0
ok nt ences On December 18, Intel receives $260,000 from a customer as down payment on a total sale of $2.6 million for computer chips to be completed on January 23. On January 23, the computer chips were delivered and the remaining cash was received from the customer. Assume Intel uses the perpetual inventory system, and the computer chips had a total production cost of $1.6 million. Determine the financial statement effects of (1) the collection of the down payment on December 18 and (2) the delivery of inventory and collection of remaining cash on January 23. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the financial statement effects of the collection of the down payment on December 18. (Enter your answers in dollars, r example, $5.5 million should be entered as 5,500,000.) 260.000 Cash Revenues Assets Income Statement Balance Sheet Expenses Liabilities 260,000 Deferred Revenue Net Income Stockholders' Equity 0
During April, Firestone purchased-goods from BF Goodrich. The sequence of events was as follows: April 1: Firestone orders 2,500 tires from BF Goodrich. BF Goodrich agrees to sell the wheels for $200 each on account under shipping terms FOB shipping point and payment terms 5/10, n45. The tires initially cost BF Goodrich $125 each on February 17th. J.B. Hunt Trucking Company will be responsible for transporting the inventory for $2,125. All shipping costs must be paid on the day of shipment. April 4: BF Goodrich loads the 2,500 tires into JB Hunt's truck. April 8: Firestone receives the shipment of tires. April 25: Firestone pays BF Goodrich for the tires previously purchased. A Accounts Payable Cash B Cash 500,000 500,000 Accounts Receivable 500,000 Event April 1 April 4 April 8 April 25 500,000 Buyer Inventory Seller Accounts Payable C Inventory Cash Accounts Receivable Sales Revenue 500,000 D Cost of Goods Sold Inventory 2,125 500,000 2,125 500,000 500,000 Required: For each Buyer…
Prepare the appropriate journal entry(s) for the following transaction made by Steel Al tematives Corp. during March. Note: Steel Alternatives Corp. records sales using the NET method. On March 6 Steel Alternatives Corp. sold 1.5 million pounds of aluminum to Southern Framing Inc. The tems of the sale were 2/ 10 , n / 30 Selling price per pound S 0.89 COGS per pound is 0.36 On March 20 Steel Alternatives Corp. received payment from Southern Framing Inc.
O'Connor Company ordered a machine on January 1 at a purchase price of $85,000. On the date of delivery, January 2, the company paid $21,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $900 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $5,100. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $9,100. Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the…
Shaw company sells good that cost 600,000 to Charm company for 800,000 on January 2, 20x5. the sales price includes an installation fee, which is valued at 80,000. the fair value of the goods is 740,000. the installation is considered a separate performance obligation and is expected to take 6 months to complete. Prepare the journal entries to record the sale on January 2, 20x5. Shaw prepares income statement for the first quarter of 20x5, ending March 31, 20x5 (installation was completed on June 18, 20x5). How much revenue should Shaw recognize related to its sale to Charm?
! Required information [The following information applies to the questions displayed below.] During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $28,000. On the date of delivery, January 2, the company paid $7,000 on the machine, with the balance on credit at 9 percent interest due in six months. On January 3, it paid $1,500 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,700. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,400. Required: 1. Indicate the effects of each transaction on the accounting equation. Note: Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the…