Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 10, Problem 10SP
1.
To determine
Ascertain the
2.
To determine
Ascertain the book value of office equipment and computer equipment.
3.
To determine
Ascertain the three-month total assets turnover for Company B as of March 31, 2020, and interpret its total assets turnover ratio if Competitors average is 2.5.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine
# 5027.
Machine # 5027
Component
Single metal housing
Motor
Blade
View transaction list
*SL = Straight-line; DDB = Double-declining-balance
On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $11,200 purchased for cash (the old blade
was scrapped). The new blade had an estimated residual value of $1,000 and an estimated life of five years and would continue to be
depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be
increased to a total of 17 years instead of 15 years and that the residual value should be increased to $9,000.
Journal entry worksheet
5
Selected ledger account balances for Business Solutions follow.
office equipment
Accumulated depreciation-office equipment
Computer equipment
Accumulated depreciation-Computer equipment
Total revenue
Total assets
For Three Months For Three Months
Ended December Ended March 31,
31, 2021
2022
$ 7,100
$ 7,100
355
710
Required:
1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2022. Compute amounts
for the year ended December 31, 2022, for Depreciation expense-Office equipment and for Depreciation expense-Computer
equipment (assume use of the straight-line method).
22,000
1,375
31,984
83,160
2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December
31, 2022?
3. Compute the three-month total asset turnover for Business Solutions as of March 31, 2022.
Complete this question by entering your answers in the tabs below.
Office equipment
Computer equipment
Depreciation…
Suppose your company sells services of $350 in exchange for $220 cash and $130 on account. Depreciation of $150
relating to equipment also is recorded
Required:
1. Prepare the journal entries to record these transactions.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
View transaction list
Journal entry worksheet
Record the service revenue of $220 for cash and $130 on account.
Transaction
Record entry
General Journal
Clear entry
Debit
Credit
Chapter 10 Solutions
Principles of Financial Accounting.
Ch. 10 - A company paid 326,000 for property that included...Ch. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQ
Ch. 10 - Why is the Modified Accelerated Cost Recovery...Ch. 10 - Prob. 7DQCh. 10 - Identify events that might lead to disposal of a...Ch. 10 - Prob. 9DQCh. 10 - Is the declining-balance method an acceptable way...Ch. 10 - Prob. 11DQCh. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - Prob. 14DQCh. 10 - Prob. 15DQCh. 10 - APPLE On its recent balance sheet in Appendix A,...Ch. 10 - Prob. 17DQCh. 10 - Prob. 18DQCh. 10 - Prob. 19DQCh. 10 - Prob. 20DQCh. 10 - Prob. 1QSCh. 10 - Prob. 2QSCh. 10 - Prob. 3QSCh. 10 - Prob. 4QSCh. 10 - Prob. 5QSCh. 10 - Prob. 6QSCh. 10 - On January 1, the Matthews Band pays 65,800 for...Ch. 10 - Prob. 8QSCh. 10 - Revenue and capital expenditures 1. Classify the...Ch. 10 - Disposal of assets Garcia Co. owns equipment that...Ch. 10 - Prob. 11QSCh. 10 - Prob. 12QSCh. 10 - Prob. 13QSCh. 10 - Prob. 14QSCh. 10 - Prob. 15QSCh. 10 - Caleb Co. owns a machine that had cost 42,400 with...Ch. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - NewTech purchases computer equipment for 154,000...Ch. 10 - Double-declining-balance depreciation In early...Ch. 10 - Straight-line depreciation and income effects P1...Ch. 10 - Double-declining-balance depreciation P1 Tory...Ch. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Revising depreciation C2 Apex Fitness Club uses...Ch. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Montana Mining Co. pays 3,721,000 for an ore...Ch. 10 - Milano Gallery purchases the copyright on a...Ch. 10 - Prob. 20ECh. 10 - Prob. 21ECh. 10 - Lok Co. reports net sales of 5,856,480 for Year 2...Ch. 10 - Prob. 23ECh. 10 - Prob. 24ECh. 10 - Prob. 1APCh. 10 - Prob. 2APCh. 10 - Prob. 3APCh. 10 - Prob. 4APCh. 10 - Yoshi Company completed the following transactions...Ch. 10 - Onslow Co. purchased a used machine for 178,000...Ch. 10 - On July 23 of the current year, Dakota Mining Co....Ch. 10 - On January 1, Falk Company signed a contract to...Ch. 10 - Nagy Company makes a lump-sum purchase of several...Ch. 10 - Prob. 2BPCh. 10 - Prob. 3BPCh. 10 - Prob. 4BPCh. 10 - Prob. 5BPCh. 10 - On January 1, Walker purchased a used machine for...Ch. 10 - Prob. 7BPCh. 10 - Prob. 8BPCh. 10 - Prob. 10SPCh. 10 - Prob. 1AACh. 10 - Prob. 2AACh. 10 - Prob. 3AACh. 10 - Prob. 1BTNCh. 10 - Prob. 5BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Current Attempt in Progress Cheyenne Corporation, in preparation of its December 31, 2025, financial statements, is attempting to determine the proper accounting treatment for each of the following situations. 1. 2. 3. No. 1. (a) Prepare the journal entries that should be recorded as of December 31, 2025, to recognize each of the situations above. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) 2. As a result of uninsured accidents during the year, personal injury suits for $668,600 and $126,800 have been filed against the company. It is the judgment of Cheyenne's legal counsel that an unfavorable outcome is unlikely in the $126,800 case but that an unfavorable verdict approximating $550,000 (reliably estimated) will probably result in the $668,600 case. 3. Cheyenne owns a subsidiary in a foreign…arrow_forwardTamarisk Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $11,600,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2020, new technology was introduced that would accelerate the obsolescence of Tamarisk's equipment. Tamarisk's controller estimates that expected future net cash flows on the equipment will be $7,308,000 and that the fair value of the equipment is $6,496,000. Tamarisk intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Tamarisk uses straight-line depreciation.arrow_forwardWhispering Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $54,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Whispering's incremental borrowing rate is 8%. Whispering is unaware of the rate being used by the lessor. At the end of the lease, Whispering has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Whispering uses the straight-line method of depreciation on similar owned equipment. Click here to view factor tables.arrow_forward
- Classifying balance sheet accounts For each account listed, identify the category in which it would appear on a classified balance sheet. Office Supplies Interest Payable Retained Earnings Copyrights Land Accumulated Depreciation—Furniture< Land (held for long-term investment purposes) Unearned Revenue</p> <p>i. Notes Payable (due in six years)arrow_forwardR. Burke Trial Balance as at 31 December 2019 Gross profit Accumulated depreciation on office equipment Capital Accounts payable Cash at bank Accounts receivable Drawings Insurance Commission received Motor repairs Closing inventory Office equipment at cost DR$ 100 8350 5500 6300 750 3000 12500 36500 CR$ 19500 7500 4200 5000 300 36500 i. Insurance prepaid $20 ii. Motor repairs owing $60 iii. Depreciate office equipment at 20% using the reducing balance method Required: (i) Prepare R Burke's Income Statement for the year ended 31 December 2019.arrow_forwardCorrection of Balance Sheet You may use the attached spreadsheet to help you complete this activity, but you are not required to do so. You will find the spreadsheet by clicking on the green Excel icon in the upper left hand corner of the activity. On December 31, 2019, Stevens Company's bookkeeper prepared the following balance sheet with items erroneously classified. Stevens Company Balance SheetFor Year Ended December 31, 2019 Current Assets: Current Liabilities: Inventory $ 6,000 Accounts payable $ 9,900 Accounts receivable 5,900 Allowance for doubtful accounts 800 Cash 2,300 Salaries payable 1,500 Treasury stock (at cost) 3,300 Taxes payable 2,500 Long-Term Investments: Long-Term Liabilities: Temporary investments in marketable securities 3,200 Bonds payable (due 2023) 11,000 Investment in held-to-maturity bonds 10,000 Unearned rent (for 3 months) 900 Property, Plant, and Equipment: Shareholders'…arrow_forward
- Hi there Please help with the following accounting question Journalise ALL the above transactions for the year ended 28 February 2021 in the General Journal including the year-end adjustment entries for depreciation. Round off to the nearest Rand Narrations are not required The format has been provided ??arrow_forwardProblem 1-22 (AICPA Adapted) Black Company required nonrefundable advance payments with special orders for machinery constructed to customer specifications. The entity provided the following information for the current year: Customer advances - beginning of year Advances received with orders Advances applied to orders shipped Advances applicable to orders canceled What amount should be reported as current liability for advances from customers at year-end? a. 1,480,000 b. C. d. 1,380,000 880,000 0 Problem 1-23 (AICPA Adapted) Lovie Company offered three payment plans on twelve-month contracts. #1 #2 #3 The entity provided the following information on the three plans and the number of children enrolled in each plan from September 1, 2023 through August 31, 2024 contract year: Initial payment per child 50,000 20,000 Monthly fee per child a. 330,000 b. 438,000 c. 660,000 d. 990,000 1,180,000 1,840,000 1,640,000 500,000 3,000 5,000 Number of children 15 12 9 The entity received P990,000 of…arrow_forward33 Calorie Catering completed the following selected transactions during May 2024: (Click the icon to view the transactions.) Read the requirements Requirement 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses.) Also indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example. (Enter "0" for any transactions that do not affect revenues or expenses.) Date May 1 Help me solve Amount of Revenue (Expense) for May Cash Basis Amount of Revenue (Expense) $ (1,500) More info May 1 May 5 May 9 May 14 May 23 May 31 May 31 May 31 Accrual Basis Amount of Revenue (Expense) $ 0 Prepaid rent for three months, $1,500. Received and paid electricity bill, $400. Received cash for meals served to customers, $2,700. Paid cash for kitchen equipment, $3,120. Served a banquet on account, $2,900.…arrow_forward
- A partial statement of financial position of Ivanhoe Ltd. on December 31, 2022, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2022): Buildings $294,000 Less: Accumulated depreciation 94,000 Equipment $125,000 Less: Accumulated depreciation 45,000 (a) Ivanhoe uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Ivanhoe applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2022. On this date, an independent appraiser assessed the fair value of the building to be $146,000 and that of the equipment to be $100,000. (To eliminate the accumulated depreciation) Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2022, using the asset adjustment…arrow_forwardSafety First Company completed all of its October 31,2020 adjustments in preparation for preparing its financial statements which resulted in the following trial balance Other information: All accounts have normal balances $26,400 of the Notes payable balance is due by October 31, 2021 The final task in the year end process was to access the assets for impairment, which resulted in the following schedule Required: Prepare the entries to record any impairment losses at October 31, 2020. Assume the company recorded no impairment losses in the previous years Prepare a classified balance sheet at October 31, 2020 What is the impact on the financial statements of an impairment loss?arrow_forwardBalance Sheet and Notes Listed here in random order are Wicks Construction Limiteds balance sheet accounts and related ending balances as of December 31, 2019: Additional information: 1. The company reports on the balance sheet the total amount for inventories and the net book value of property, plant, and equipment, with the related details for each account disclosed in notes. 2. The straight line method is used to depreciate buildings, machinery, and equipment, based upon their cost and estimated residual values and lives. A breakdown of property, plant, and equipment shows the following: land at a cost of 32,000, buildings at a cost of 182,400 and a net book value of 120,200, machinery at a cost of 63,900, and related accumulated depreciation of 18,600, and equipment (40% depreciated) at a cost of 53,000. 3. Patents are amortized on a straight line basis directly to the Patent account. 4. Inventories are listed at the lower of cost or market value using an average cost. The inventories include raw-materials, 22,200; work in process, 34,700; and finished goods, 41,600. 5. Common stock has a 10 par value per share, 12,000 shares are authorized, and 6,280 shares have been issued. 6. Preferred stock has a 100 par value per share, 1,000 shares are authorized, and 400 shares have been issued. 7. The investment in bonds is carried at the original cost, which is the face value, and is being held to maturity. 8. Short-term investments in marketable securities were purchased at year-end. 9. The bonds payable mature on December 31, 2024. 10. The company attaches a 1-year warranty on all the products it sells. Required: 1. Prepare Wicks Constructions December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare notes to accompany the balance sheet that itemize company accounting policies; inventories; and property, plant, and equipment. 3. Next Level Compute the current ratio and the quick ratio. How do these two ratios provide different information about the companys liquidity? Why are these ratios useful?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Accounting for Derivatives_1.mp4; Author: DVRamanaXIMB;https://www.youtube.com/watch?v=kZky1jIiCN0;License: Standard Youtube License
Depreciation|(Concept and Methods); Author: easyCBSE commerce lectures;https://www.youtube.com/watch?v=w4lScJke6CA;License: Standard YouTube License, CC-BY