I need assistance in entering these into Journal entries.
Especially part 3 Property Plant and Equipment. I am confused on how to depreciate the items properly (please show work on how to do it)
1. Using the Journal, record the transactions that occurred during 2017. If no specific date is provided for a transaction, leave the date column blank. Since there are several transactions for which no date is given, the journal entries, do NOT need to be in chronological order. All adjusting and closing entries should have Dec 31, 2017, as the date.
**Second Page info Below
4. Debt
a. On August 1, 2017, Harriet’s paid-off the note payable that was outstanding at the beginning of the period. The note had an 10% interest rate, had been issued on August 1, 2016, and required semiannual interest payments on Jan 31, 2017 and July 31, 2017.
b. On October 1, 2017, Harriet’s borrowed $120,000 on a new note payable. The new note carries a 6% interest rate with semiannual interest payments required on March 31, 2018 and September 30, 2018.
5. Operations
a. Harriet’s made a rent payment of $51,000 on August 1, 2017. The payment was for rent on the store building and was prepaid for one year. The balance in the prepaid account at the end of 2016 represents the rent for January through July 31, 2017 that was paid for on August 1, 2016.
b. Cash paid out during 2017 for wages totaled $142,000. Records indicate that salaries for the last week of December 2017 amounted to $25,000 and will be paid at the end of the first week in January 2018 (a two-week pay period).
c. Other expenses (paid in cash) totaled $38,000.
6. Income Taxes a. On March 15, 2017, Harriet’s paid their 2016 income taxes. Harriet’s will pay their 2017 income taxes on March 15, 2018. Harriet’s has a 40% income tax rate for both 2016 and 2017.
7. Common Stock
a. On December 1, 2017, dividends of $35,000 were declared and paid.
b. On January 1, 2017, Harriet’s issued 10,000 additional shares of common stock for $10 per share.
Dear Student - As per question above m you are more confused with depreciation calculation and Journal Entries . i have provided complete break down for the same . i am not covering all other entries .
Any doubt , please drop me message , I will help you to sort out your doubt .
Thank you .
ID Number | Historical Cost($)-A | Useful Life-D | Salvage value ($)-B | Depreciable Amount $ ( A-B)=C | Depreciation $(C/D) | Date Acquired |
1256 | 60,000 | 12 | - | 60,000 | 5,000 | Jan1,2007 |
1876 | 1,00,000 | 10 | 15,000 | 85,000 | 8,500 | Jan1,2008 |
4299 | 92,000 | 15 | 5,000 | 87,000 | 5,800 | Jan1,2009 |
42,000 | 10 | 4,000 | 38,000 | 3,800 | ||
Total | 2,70,000 | 23,100 |
Asset sold on 1st oct 2017 ( ID 1876 ) amount to $ 16825 | ||||
After 9 Years asset sold . So depreciated Value | ||||
Per year $ | 8,500 | |||
9 Year value $ | 76,500 | |||
Depreciation reduced to 9 Months $ | 6,375 | |||
($8500/12*9) | ||||
Value of Asset | 70,125 |
Total Depreciation | Amnt($) | |
ID Number | 1256 | 5,000 |
1876 | 6,375 | |
4299 | 5,800 | |
New Asset | 3,800 | |
Total Depreciation | 20,975 |
Journal Entries | |||
Details | Debit($) | Credit($) | |
Depreciation Expenses | 20,975 | ||
Accumulated depreciation | 20,975 | ||
( depreciation accounted) | |||
Asset | 42,000 | ||
Cash | 42,000 | ||
( New asset purchased) | |||
Cash | 16,825 | ||
Loss on Sale of Asset | 53,300 | ||
Asset | 70,125 | ||
( record sale of asset with recognition of losses) |
I need assistance in entering these into Journal entries. Especially part 3 Property Plant and Equipment....
I need assistance in entering these into Journal entries.
Especially part 3 Property Plant and Equipment. I am confused on
how to depreciate the items properly (please show work on how to do
it)
1. Using the Journal, record the transactions that occurred
during 2017. If no specific date is provided for a transaction,
leave the date column blank. Since there are several transactions
for which no date is given, the journal entries, do NOT need to be
in chronological...
I am having a hard time with
this assignment, can you solve it from start to finish including
the journal entries and t accounts? Thank you!
NAME: Harriet's Hats, Inc. Harrict's Hats is a fictional company. The following information includes the balance sheet as of December 31, 2016, and the details of the transactions that occurred during 2017 Background: Harriet's Hats is a hat retailer (in other words, Harrict's buys hats from a hat manufacturer and then sells them in...
Could someone answer number 5(A) and 3(B)
and 3(C) with the equations and how they would look in a general
ledger? What should I debit and what should I credit?
$18,000 4,600 1,400 2,000 Harriet's Hats Incorporated Balance Sheet As of December 31, 20Y8 ASSETS Cash Accounts Receivable 5,000 Less: Allowance for Doubtful Accounts (400) Net Accounts Receivable Prepaid Rent Inventory Property, Plant, and Equipment 52,100 Less: Accumulated Depreciation (22,600) Net Property, Plant, and Equipment Total Assets LIABILITIES + OWNER'S...
Journal entries are for the end of 2017 (Dec. 31st, 2017). For
part b it is July 1st of 2017 that the equipment (ID1876) was
sold.
I am not sure whether you depreciate the equipment (ID#1876)
before it was sold (include it with the other items and make it
apart of the journal entry for 2a) or when it was sold (make it
apart of the journal entry for 2b).
2. Equipment a. Hogs uses straight-line depreciation for all of...
can
someone explain how to do these?
Notes Payable CHAPTER 10 Record the journal entries on the books of Stanley's Garage, Inc. for the following transactions: October 1, 2019: Borrowed $60,000 from Wells Fargo Bank and signed a 10 month, 8% note. December 31, 2019: Made the necessary year-end adjusting journal entry for the note. August 1, 2020: Repaid the note plus all interest due to Wells Fargo Credit Date October 1, 2019 Accounts Cash ble payable 1 Debit 600,000...
The non-current asset section of Zara Berhad at 31 December 2017 is as follows: Property, Plant and Equipment RM Land 65,000 Buildings (RM100,000 cost less RM2,000 depreciation) 98,000 Motor Vehicle (RM84,000 cost less RM28,800 depreciation) 55,200 Plant and Machineries (RM290,000 cost less RM134,800 depreciation) 155,200 Note: The company uses the straight-line depreciation method for all depreciable assets. The company adopts the revaluation model for land and buildings and the cost model for motor vehicle and plant and machineries. It is...
Question: Prepare journal entries to record the 2017
amortization expense for intangible assets.
Problem 9-7B (Part Level Submission) The intangible assets section of Cullumber Company at December 31, 2016, is presented below. Patents (£78,300 cost less £7,830 amortization) Copyrights (£42,700 cost less £17,080 amortization) Total £70,470 25,620 £96,090 The patent was acquired in January 1, 2016 and has a useful life of 10 years. The copyright was acquired in January 1, 2013 and also has a useful life of 10...
Selected accounts included in the property, plant, and equipment section of Windsor Corporation’s balance sheet at December 31, 2016, had the following balances. Land $ 348,000 Land improvements 162,400 Buildings 1,276,000 Equipment 1,113,600 During 2017, the following transactions occurred. 1. A tract of land was acquired for $ 174,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 23,200 shares of Windsor’s common stock. On the acquisition...
Problem 11-5 Property, plant, and equipment and intangible assets; comprehensive (LO11-2] The Thompson Corporation, a manufacturer of steel products, began operations on October1 2016. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel (EV of $1, PV of $1. EVA...
Selected accounts included in the property, plant, and equipment section of Whispering Corporation's balance sheet at December 31, 2016, had the following balances. Land Land improvements 170,800 Buildings Equipment $ 366,000 1,342,000 1,171,200 During 2017, the following transactions occurred. 1. 2. Atract of land was acquired for $183,000 as a potential future building site. A plant facility consisting of land and building was acquired from Mendota Company in exchangefor 24,400 shares of Whispering's common stock. On the acquisition date, Whispering's...