Homework Answers
| 1) | Bad debts are not estimated | ||||||
| 2) | land is not depreciated ,while building will be | ||||||
| depreciated over its 20 year useful life | |||||||
| 3) | The $520 increase in annual insuance costs for | ||||||
| the machine | |||||||
| 4) | 0.4 | ||||||
| (45000-5000)/100,000 | |||||||
| 0.4 | |||||||
| 5) | 1/6*2 | ||||||
| 0.333333 | |||||||
| 60000*33.33% | |||||||
| 20000 | answer | ||||||
| 6) | 1/10*2 | ||||||
| 20% | dep | ||||||
| year 2018 | 44000*20%= | 8800 | |||||
| year 2019 | (44000-8800)*20%= | 7040 | |||||
| total accumulated dep | 15840 | ||||||
| book value | 44000-15840= | 28160 | answer | ||||
| 7) | The governments wants to encourage companies to invest in | ||||||
| assets to promote economic renewal and growth | |||||||
| 8) | intangible asset | ||||||
| 9) | 320,000*3% | ||||||
| 9600 | |||||||
| 10) | Santigo does not have to collect directly from customers | ||||||
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When the direct write-off method is used: Multiple Choice 0 the estimated amount of bad debts...
Grandview, Inc. uses the allowance method. At December 31, 2018, the company's balance sheet reports Accounts...
Grandview, Inc. uses the allowance method. At December 31, 2018, the company's balance sheet reports Accounts Receivable, Net in the amount of $19,000. On January 2, 2019, Grandview writes off a $1,900 customer account balance when it becomes clear that the customer will never pay. What is the amount of Accounts Receivable, Net after the write-off? 1 Multiple Choice $20.900. 0 O $17,100. 0 0 $19,000 0 $1,900 $1,900 0 Kelton Inc. reported net credit sales of $320,000 for the...
Pebble Beach Co. buys a plece of equipment for $60,000. The equipment has a useful life...
Pebble Beach Co. buys a plece of equipment for $60,000. The equipment has a useful life of six years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment's useful life? (Do not round Intermediate calculations.) Multiple Choice Ο $20.000 Ο Ο S15.000 $15.000 Ο $10,000 Ο Ο S30000 A piece of equipment was acquired on January 1, 2018, at a...
The unadjusted trial balance at year end for a company that uses the percent of receivables method...
The unadjusted trial balance at year end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: Accounts receivable Allowance for Doubtful Accounts Net Sales $ 444,000 Debit 1,340 Debit 2,190,000 Credit All sales are made on credit. Based on past experience, the company estimates 3.0% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record...
A company uses the percent of sales method to determine its bad debts expense. At the...
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $362,000 debit 570 debit 807,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.3% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry...
Kimmel, Accounting, 6e TIMER Multiple Choice Question 123 The direct write-off method of accounting for bad...
Kimmel, Accounting, 6e TIMER Multiple Choice Question 123 The direct write-off method of accounting for bad debts O is the preferred method under generally accepted accounting principles O uses an allowance account. O uses a contra asset account. O does not require estimates of bad debt losses. Click if you would like to Show Work for this question: Oren Show Work Question O Type here to search 2 3 5 6 8 0
When originally purchased, a vehicle costing $24,120 had an estimated useful life of 8 years and...
When originally purchased, a vehicle costing $24,120 had an estimated useful life of 8 years and an estimated salvage value of $2,200. After 4 years of straight- line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals: $5,480.00 $2,908.00. $2.740.00 $10.960.00 $5,648.00. Torino Company has 2.300 shares of $20 par value, 7.5% cumulative and nonparticipating preferred stock...
28) When originally purchased, a vehicle costing $26.460 had an estimated useful life of 8 years...
28) When originally purchased, a vehicle costing $26.460 had an estimated useful life of 8 years and an estimated salvage value of $3500. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals: A) S3038.00. B) $11,480.00. C) $5908.00. D) $5740.00 E) $2870.00. 29) Lima Enterprises purchased a depreciable asset for $29.000 on...
. Mark the following statements as True or False then select the corresponding multiple choice answer...
. Mark the following statements as True or False then select the corresponding multiple choice answer All intangible assets purchased by a company are amortized over the lesser of their useful or legal life with no salvage value. Capital expenditures are added to the book value of an asset and depreciated over the remaining life. T_Recording depreciation expense through an adjusting entry is an example of an accrual. A. True, True, True B. True, False, False rue D. False, True,...
A machine originally had an estimated service life of 5 years, and after 3 years, it...
A machine originally had an estimated service life of 5 years, and after 3 years, it was decided that the original estimate should have been for 10 years. The remaining cost to be depreciated should be allocated over the next Multiple Choice 5 years 6 years 10 years 7 years 2 years Creek Construction owned a bulldozer which was destroyed by fire. The bulldozer originally cost $38,000. The accumulated depreciation recorded to the date of loss was $20,000. The proceeds...
A company is planning to purchase a machine that will cost $32,400, have a six-year life,...
A company is planning to purchase a machine that will cost $32,400, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? $132.000 Sales Cost: Manufacturing Depreciation on machine Selling and administrative expenses $53,400 5,400 44,000 (102,800) Income before...
Grandview, Inc. uses the allowance method. At December 31, 2018, the company's balance sheet reports Accounts Receivable, Net in the amount of $19,000. On January 2, 2019, Grandview writes off a $1,900 customer account balance when it becomes clear that the customer will never pay. What is the amount of Accounts Receivable, Net after the write-off? 1 Multiple Choice $20.900. 0 O $17,100. 0 0 $19,000 0 $1,900 $1,900 0 Kelton Inc. reported net credit sales of $320,000 for the...
Pebble Beach Co. buys a plece of equipment for $60,000. The equipment has a useful life of six years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment's useful life? (Do not round Intermediate calculations.) Multiple Choice Ο $20.000 Ο Ο S15.000 $15.000 Ο $10,000 Ο Ο S30000 A piece of equipment was acquired on January 1, 2018, at a...
The unadjusted trial balance at year end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: Accounts receivable Allowance for Doubtful Accounts Net Sales $ 444,000 Debit 1,340 Debit 2,190,000 Credit All sales are made on credit. Based on past experience, the company estimates 3.0% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record...
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $362,000 debit 570 debit 807,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.3% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry...
Kimmel, Accounting, 6e TIMER Multiple Choice Question 123 The direct write-off method of accounting for bad debts O is the preferred method under generally accepted accounting principles O uses an allowance account. O uses a contra asset account. O does not require estimates of bad debt losses. Click if you would like to Show Work for this question: Oren Show Work Question O Type here to search 2 3 5 6 8 0
When originally purchased, a vehicle costing $24,120 had an estimated useful life of 8 years and an estimated salvage value of $2,200. After 4 years of straight- line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals: $5,480.00 $2,908.00. $2.740.00 $10.960.00 $5,648.00. Torino Company has 2.300 shares of $20 par value, 7.5% cumulative and nonparticipating preferred stock...
28) When originally purchased, a vehicle costing $26.460 had an estimated useful life of 8 years and an estimated salvage value of $3500. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals: A) S3038.00. B) $11,480.00. C) $5908.00. D) $5740.00 E) $2870.00. 29) Lima Enterprises purchased a depreciable asset for $29.000 on...
. Mark the following statements as True or False then select the corresponding multiple choice answer All intangible assets purchased by a company are amortized over the lesser of their useful or legal life with no salvage value. Capital expenditures are added to the book value of an asset and depreciated over the remaining life. T_Recording depreciation expense through an adjusting entry is an example of an accrual. A. True, True, True B. True, False, False rue D. False, True,...
A company is planning to purchase a machine that will cost $32,400, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? $132.000 Sales Cost: Manufacturing Depreciation on machine Selling and administrative expenses $53,400 5,400 44,000 (102,800) Income before...
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