Sows company established at January 2016 to produce foods andmedicine for animals, the company purchased a heavy equipment forproduction which cost 1,200,000 with 10 years useful Jife and 100,000salvage value, the company used doble declining method for depreciationand W.A for inventory. In 31/12/2019 the company changes its inventorymethod to FIFO, and its depreciation method to straight line; thefollowing reported income before tax for the previous yearsincome FIFO dividend paid160,000250,000Yearincome at W.A2016370,000390,000410,000395,0002017420,0002018300,000380,000320,0002019280,000200,000The differences in income just related for change in inventory method,income for 2020 under FIFO before tax was $150,000 after deductible98304 depreciation expenses at doble declining method, the companydeclared $45,000 cash dividend and $50,000 share dividend. Theaccumulated depreciation at 31/12/2020 S806,784.Required: if the 25% income tax didn't change during the years:1) Calculated the adjusted income for the vear ended 31/12/20202) prepare the retained earnings statement for the ended31/12/20203) Journalize any entry required for the adjustment

Journalizing is the action of recording and classifying a business transaction into books of…

Required: if the 25% income tax didn't change during the vears: 1) Calculated the adjusted income for the year ended 31/12/2020 2) prepare the retained earnings statement for the ended 31/12/2020 3) Journalize any entry required for the adjustment

Required: if the 25% income tax didn't change during the vears: 1) Calculated the adjusted income for the year ended 31/12/2020 2) prepare the retained earnings statement for the ended 31/12/2020 3) Journalize any entry required for the adjustment

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 32BE: Depreciation Methods On January 1, 2019, Loeffler Company acquired a machine at a cost of $200,000....

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Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The company charging OMR 2400 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 7200 and the company decided to sell this equipment for OMR 3500 on 31st Mar2018. Find out the profit or loss on sale of equipment and pass the journal entry in the books of Yousuf& Sons Company. a. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 Dr Loss on sale of equipment OMR 700 and Equipment A/c OMR 12000 b. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 and Cr Equipment A/C 11300 c. None of the given options d. Dr Cash OMR 3500 Dr Accumulated depreciation OMR 7200 Dr Loss on sale of Equipment OMR 1300 and Cr Equipment A/C 12000 Clear my choice
Sows company established at January 2016 to produce foods and medicine for animals, the company purchased a heavy equipment for production which cost 1,200,000 with 10 years useful life and 100,000 salvage value, the company used doble declining method for depreciation and W A for inventory. In 31/12/2019 the company changes its inventory method to FIFO, and its depreciation method to straight line, the following reported income bef ore tax for the previous years Year 2016 2017 2018 2019 The differences in income just related for change in inventory method, income for 2020 under FIFO before tax was $150,000 after deductible 98304 depreciation expenses at doble declining method, the company declared $45,000 cash dividend and $50,000 share dividend. The accumulated depreciation at 31/12/2020 $806,784. income at W.A 370,000 390,000 410,000 280,000 income FIFO dividend paid 395,000 420,000 380,000 320,000 160,000 250,000 300,000 200,000 Required: if the 25% income tax didn't change during…
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Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The company charging OMR 2400 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 7200 and the company decided to sell this equipment for OMR 3500 on 31st Mar2018. Find out the profit or loss on sale of equipment and pass the journal entry in the books of Yousuf& Sons Company. a. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 Dr Loss on sale of equipment OMR 700 and Equipment A/c OMR 12000 b. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 and Cr Equipment A/C 11300 c. None of the given options d. Dr Cash OMR 3500 Dr Accumulated depreciation OMR 7200 Dr Loss on sale of Equipment OMR 1300 and Cr Equipment A/C 12000
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