The Old Machine was bought one year ago and has been depreciated using the straight line basis You are Required to report to Mr. Jones on: a) Whether there will be a gain or loss on the sale of the old machine. b) Whether the old machine should be replaced.
Q: Botosan Factory has budgeted factory overhead for the year at $666,573, and budgeted direct labor…
A: As per the given information: Budgeted factory overhead - $666,573 Budgeted direct labor hours -…
Q: Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments:…
A: Activity-based costing (ABC): It is a costing method in which overhead and indirect costs are…
Q: Calculate the EBIT which should be used for the EV / EBIT multiple given the information below:
A: Earnings before interest and taxes is the earnings which a company has earned during the year which…
Q: Functional-Based versus Activity-Based CostingFor years, Tamarindo Company produced only one…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: 11. What would have been the company’s absorption costing net operating income (loss) if it had…
A: Absorption Costing :— it is a marginal Costing techniques. A managerial accounting method for…
Q: At the beginning of the year, Big Time Tires acquired a patent for $840,000, and a trademark for…
A: Amortization Expenses of intangible Asset: The practice of deducting the cost of an intangible asset…
Q: What is the difference of segment reporting and operating segments? Are they interrelated? Please…
A: Introduction: The inclusion of a company's current segments in the disclosures that accompany its…
Q: ter Henri stopped making his mortgage payments, the lender foreclosed on his home and issued a Form…
A: When any borrower is unable to pay the debt on payment than lender will take possession of the…
Q: QS 13-7 Preparing a statement of changes in equity LO² Fisher Inc. began operations on January 1,…
A: Statement of stockholders’ equity- The statement of stockholders' equity is a report created by an…
Q: Whispering Winds Corporation began operations on April 1 by issuing 59,500 shares of $5 par value…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: 1. Determine the fixed and variable portions of the utility cost using the high-low method. 2.…
A: Mixed Cost refer to those costs which are variable as well as fixed in nature. Contribution is the…
Q: Franklin corporation issues $81,000, 8%, 5-year bonds on January 1, for $84,650. Interest is paid…
A: BOND IS A SECURITY UNDER WHICH THE DEBT PRINCIPAL AMOUNT IS REPAID ALONG WITH INTEREST OVER A…
Q: Briefly explain three non cash dividend options
A: Dividend is a distribution of profit of company to its shareholders. When company earn profit. The…
Q: entity, a contractor, enters into a contract to build a hospital r a customer. The entity is…
A: in case of the construction contact it is paramount in order to be calculate the estimated sales…
Q: QS 13-12 Dividend allocation between classes of shareholders LO5 The equity section of the Holden…
A: Shares- The company's financial assets are its shares. The value of the shares varies according to…
Q: Normal capacity for the year was 117,600 cases to be produced evenly throughout the year with a…
A: Absorption Costing For the Absorption costing techniques while calculating the total cost of goods…
Q: Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company…
A: Journal entries are the initial reporting of the business transactions in the books of an entity.…
Q: Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments:…
A: Under multiple department overhead rate different departments use different allocation rate of…
Q: On October 1, 2022, Milk Tea Company purchased a debt security having a face value of P3,000,000…
A: In case of investment in debt security is measured at FVTOCI ,initially the investment should…
Q: 3 On 15 December 20X6, Breeze Transport repaired eight buses at a repair cost of $650 per bus. A…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: What are budgets used for?
A: Management accounting is one of the branches of accounting. Unlike financial accounting, the…
Q: Calculate the gross profit using: 3.1. FIFO method (10) 3.2. Weighted average method (10)
A:
Q: Always Rain Irrigation, Inc. would like to determine capacity requirements for the next four years.…
A: Total forecast demand: Product/Year Year 1 (in 000's) Year 2 (in 000's) Year 3 (in 000's) Year 4…
Q: Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments:…
A: Factory overhead rate is the amount at which the overheads are allocated among various products,…
Q: Daniel and Nancy Garfield invested $6,700 in a savings account paying 4% annual interest when their…
A: The time value of money is the concept widely used by individuals, organizations, and governments to…
Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that…
A: Chapman Company obtains 100% of Abernethy Company's stock as on 1st Jan 2020. The Stock is acquired…
Q: Diego Company manufactures one product that is sold for $77 per unit in two geographic regions—the…
A: Variable costing is the technique of measuring cost that do not include the fixed overhead as a part…
Q: Required information [The following information applies to the questions displayed below.] Following…
A: >Net Present value or NPV analysis takes into account the present value of future cash flows to…
Q: (1) Prepare the entry to record the encumbrance on November 3, 20x2 (2) Prepare the entries required…
A: The asset (computer) will be recorded in the books the date it is received by the entity. Till then…
Q: Sunk costs are easy to spot---they're the fixed costs associated with a decision. Do you agree?…
A: Suck Cost: a cost that has already been spent but cannot be recouped; this kind of expense is…
Q: I'd like you to articulate the similarities and differences between Job Order Cost Systems vs.…
A: Job Order Cost System: Job order costing is a way of costing that is used to assess the amount of…
Q: Antonio received 40 ISOs (each option gives him the right to purchase 20 shares of Zorro stock for…
A:
Q: Required information [The following information applies to the questions displayed below] The…
A: A trial balance's main function is to confirm that the entries in a firm's accounting system are…
Q: At the beginning of the current year, Milk Tea Company acquired a trademark for P2,000,000. The…
A: Impairment loss = Carrying cost - Value in use Carrying cost = P2,000,000 Value in use ( present…
Q: Failure to prepare an adjusting entry at the end of the period to record an accured expense would…
A: A successful adjusting entry at the end of the period to record an accrued expense would: Increase…
Q: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows…
A:
Q: Prepare the entries for transaction below and indicate what journal it is 21 august issued a $600…
A: The primary and foremost reporting of the business transactions is to be done in the journal entry…
Q: Data table Year Plan Alpha Plan Beta $ 1,600,000 $ 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000…
A: Net Present Value (NPV): The difference between the present value of cash inflows and the present…
Q: Part a and b are wrong ?
A: Depreciation - It is the reduction in the value of fixed asset due to normal wear and tear and…
Q: Sparky Corporation uses the weighted-average method of process costing. The following information is…
A: Conversion cost is the cost of direct labor and overheads. It includes the overheads incurred on the…
Q: Sarap Catering quotes a price of P910 per person for a banquet dinner. This price includes the 10%…
A: The company has a basis food price on which it charges 10% VAT and 20% service charges.
Q: Integrity Company, a newly formed company, had the following shares issued and outstanding as of…
A: Ordinary share capital is the par value of ordinary shares. Preference share capital is the amount…
Q: On January 1, 2021, Rainbow Company paid cash to purchase an automobile. The car dealer gave…
A: Depreciation rate as per double declining balance method = (100/useful life)×2 Depreciation expense…
Q: Question: Under the units of production method of depreciation (a) How much depreciation will…
A: Units of Production is a one of the Method of Depreciation. Under this Method, Depreciation is…
Q: Mia Wiz sells computers. During May, it sold 500 computers at a $800 per unit price. The fixed…
A: Variance refers to the difference between the budgeted, planned, or standard cost and the actual…
Q: Atlantic Surf manufactures surfboards. The company’s budgeted sales units for the next three months…
A: Ending inventory units for the month July = 50% of August sales = 50% of 7,400 = 3,700 Ending…
Q: Conduct the following variance analysis and evaluate the results. Show the steps in your…
A: Price variance : Comparison between budgeted price and actual price for actual output (Average…
Q: ABC Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x2. In line…
A: Revenue recognition principle says that all revenues are recognised by the business when these are…
Q: Southwestern Industries has the following selected data ($ in millions): Balance sheet data Total…
A: Debt to Equity Ratio: Debit and Equity both are used to provide funds to the business. The debt to…
Q: Sarasota Corporation had 109.200 shares of stock outstanding on January 1, 2020. On May 1, 2020,…
A: Answer:- Weighted-average number of shares outstanding meaning:- The weighted average number of…
Step by step
Solved in 2 steps
- A rebar bender with a capacity of 16mm up to 25mm capacity was purchased 5 years ago with an original cost of P80,000 to has a useful life of 12 years. Its salvage value is P800. A trading shop offers that they can purchase the machine for P1200. Determine the sunk cost and identify if it is a profit or a loss with the use of: a.) The straight line method b.) Declining Balance method c.) SYDVaughn Manufacturing is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine New Machine $430000 $860000 O $86000 O $430000 O $129000 Ⓒ$301000 129000 10 years 0 $344000 -0 0 10 years $258000 If the old machine is replaced, it can be sold for $34400. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision?willow Creek Company purchased and installed carpet in its new gereral offces on Juiy 30 for a total cost of s5,s28. The carpet is estimated to have a 8-year useful life and no residual value. a. Prepare the journal entry necessary for recording the purchase of the new carpet. Julv 30 Carpet v 6.521 Cash 6.520 Feedhack Cheok My uk Is this purchase improving or extending the life of the asset? Or is this purchase something that will only benefit this period? b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that willon Creek uses the straight-line method. Do not round intermediate calculations.
- “Three Junes Weaving has just purchased an automated weaving machine and is trying to figure out which depreciation method to use: straight-line, units-of-production, or double-declining-balance. Ira Glasier, the controller, is interested in using a depreciation method that approximates the usage of the weaving machine. He also expects that the weaving machine will have increasing repairs and maintenance as the asset ages.” Which depreciation method should Ira choose?Concord Corporation is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Purchase price Accumulated depreciation Annual operating costs O $66000 Old Equipment New Equipment $225000 $500000 $(91000) $94000* O $(26000) 94000 316000 -0- If the old equipment is replaced now, it can be sold for $66000. Both the old equipment's remaining useful life and the new equipment's useful life is 6 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is 248000Consider the following scenario involving an existing asset. Which of these values would be used in the replacement analysis of this asset? Your company purchased a new construction vehicle 4 years ago for $300,000. Last year, the vehicle required a major overhaul costing $25,000. Today, a local dealer offers you a trade-in allowance of $175,000 for the vehicle. The current market-value for the 4-year-old vehicle is $147,000. a. Use $300,000 original purchase price only.b. Use only $147,000 market value.c. Use only $175,000 trade-in allowance.d. Use all four of these costs.
- Willow Creek Company purchased and installed carpet in its new general offices on July 30 for a total cost of $6,528. The carpet is estimated to have a 8-year useful life and no residual value. a. Prepare the journal entry necessary for recording the purchase of the new carpet. July 30 Carpet v 6,528 V Cash v 6,528 Feedback V Check My Work Is this purchase improving or extending the life of the asset? Or is this purchase something that will only benefit this period? b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek uses the straight-line method. Do not round intermediate calculations. Dec. 31 Depreciation Expense-Carpet v 476 X Accumulated Depreciation-Carpet v 476 XCrane Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $340000 $680000 Accumulated Depreciation 102000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $272000 $204000 If the old machine is repiaced, it can be sold for $27200. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision? $68000 • $238000 $102000 $340000Vaughn Manufacturing is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $220500 $367500 Accumulated depreciation 88200 - 0 - Annual operating costs 294000 235200 If the old equipment is replaced now, it can be sold for $58800. Both the old equipment’s remaining useful life and the new equipment’s useful life is 5 years. The company uses straight-line depreciation with a zero salvage value for all of its assets.For the 5-year period, what is the increase or decrease in net income associated with the new equipment? $88200` $58800 $(14700) $(73500)
- Baxter Bakers is trying to decide whether it should keep its existing bread-making machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $10,000 $25,000 Accumulated depreciation 6,000 Annual cash operating costs 9,500 5.000 Current salvage value of old machine Salvage value in 10 years 2,500 650 1,200 Remaining life 12 yrs 12 yrs Refer to Baxter Bakers. The estimated $650 salvage value of the existing machine in 10 years represents a(n) Select one: a. opportunity cost of keeping the existing machine for 10 years b. opportunity cost of selling the existing machine now c. opportunity cost of keeping the existing machine and buying the new machine d. sunk costRT Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: The information on various categories for an old machine and a new machine listed in the table is as follows: 1. Old Machine • Original cost: $10,800 • Useful life: 9 years • Current age: 4 years • Remaining useful life: 5 years • Accumulated depreciation: $4,800 • Book value: $6,000 • Current disposal value in cash: $2,800 • Terminal disposal value 5 years from now: $0 • Annual cash operating costs: $18,000 2. New Machine • Original cost: $8,800 • Useful life: 5 years • Current age: 0 years • Remaining useful life: 5 years • Accumulated depreciation: Not acquired yet • Book value: Not acquired yet • Current disposal value in cash: Not acquired yet • Terminal disposal value 5 years from now: $0 • Annual cash operating costs: $15,000 Old Machine New Machine Original cost $10,800 $8,800 Useful life 9 years 5 years Current age 4 years 0 years Remaining useful…Waterway Industries is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $352000 $576000 Accumulated 140800 -0- depreciation Annual operating costs 463000 398000 If the old equipment is replaced now, it can be sold for $95800. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) (net effect on current year net income) of replacing the old equipment with the new equipment is (don't consider annual operating costs in the computation) $(111000) $140800 $95800 $(19400) M C