ZuoTi.Pro
Question

Belcalis Almanzar, Inc., manufactures and sells sports equipment, and has a fleet of forklifts it uses in its warehouses to sOn Dec. 31, 2020, a customer of Chancelor Johnathan Bennett, Inc., called to order a shipment of 1,000 items. Although Bennet

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1. Almanzar to record this sale as $ 5,000 gain since book value of asset is nil.

Entry in books will be

Accumulated depreciation a/c debit

Cash a/c debit.

Asset A/c credit

Gain on sale of asset credit

2.

No, Bennett cannot recognize the revenue during 2020, since it has not accrued yet as he has not finished producing the items.

The $ 10,000 received will be treated as advance from customer.

3. Rent expense for first quarter = 20,000 * 3 months

= $ 60,000

Balance $ 180,000 will be treated as prepaid rent

0 0
Add a comment
Know the answer?
Add Answer to:
Belcalis Almanzar, Inc., manufactures and sells sports equipment, and has a fleet of forklifts it uses...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Truball Inc., which manufactures sports equipment, consists of several operating divisions. Division A has decided to...

    Truball Inc., which manufactures sports equipment, consists of several operating divisions. Division A has decided to go outside the company to buy materials since division B plans to increase its selling price for the same materials to $200. Information for division A and division B follows: Outside price for materials Division A's annual purchases Division B's variable costs per unit Division B's fixed costs, per year Division B's capacity utilization $100 5,000 units $90 $1,150,000 100% Required: 1. Assume that...

  • New Translate Web... 2 23 59 On July 31, 2020 Baker completed a $1,500 service job...

    New Translate Web... 2 23 59 On July 31, 2020 Baker completed a $1,500 service job for a customer. The customer did not pay cash for the job when it was completed the customer will pay for the job on August 15, 2020. It was late in the day when the job was completed and Baker's accounting department did not have time to invoice the customer for the $1,500 completed job, If Baker did not make the July 31 adjusting...

  • ACC201: Financial Accounting Natsu Pte Ltd (“NPL”) is a company incorporated in Singapore and uses the...

    ACC201: Financial Accounting Natsu Pte Ltd (“NPL”) is a company incorporated in Singapore and uses the Singapore Financial Reporting Standards (“FRSs”). Its financial year end is 31 December. It is in the retail business. The unadjusted trial balance of NPL as at 31 December 20X1 was as follows: Account Title Debit Credit $ $ Cash 136,000 Accounts receivable 112,400 Inventory 16,600 Purchases 120,000 Purchase returns 5,000 Prepaid rental 24,000 Building 4,800,000 Accumulated depreciation - Building 96,000 Accounts payable 48,400 Share...

  • ACC201: Financial Accounting Natsu Pte Ltd (“NPL”) is a company incorporated in Singapore and uses the Singapore Financi...

    ACC201: Financial Accounting Natsu Pte Ltd (“NPL”) is a company incorporated in Singapore and uses the Singapore Financial Reporting Standards (“FRSs”). Its financial year end is 31 December. It is in the retail business. The unadjusted trial balance of NPL as at 31 December 20X1 was as follows: Account Title Debit Credit $ $ Cash 136,000 Accounts receivable 112,400 Inventory 16,600 Purchases 120,000 Purchase returns 5,000 Prepaid rental 24,000 Building 4,800,000 Accumulated depreciation - Building 96,000 Accounts payable 48,400 Share...

  • ACC201: Financial Accounting Natsu Pte Ltd (“NPL”) is a company incorporated in Singapore and uses the...

    ACC201: Financial Accounting Natsu Pte Ltd (“NPL”) is a company incorporated in Singapore and uses the Singapore Financial Reporting Standards (“FRSs”). Its financial year end is 31 December. It is in the retail business. The unadjusted trial balance of NPL as at 31 December 20X1 was as follows: Account Title Debit Credit $ $ Cash 136,000 Accounts receivable 112,400 Inventory 16,600 Purchases 120,000 Purchase returns 5,000 Prepaid rental 24,000 Building 4,800,000 Accumulated depreciation - Building 96,000 Accounts payable 48,400 Share...

  • Aber Inc. plans to develop a shopping center. In the first quarter, they spent the following...

    Aber Inc. plans to develop a shopping center. In the first quarter, they spent the following amounts: Acquisition of land $15000 Surveys and legal fees 600 Land clearing 200 Fencing 1000 Install lighting and signage 860 What amount should be recorded as the cost of land in the books of the corporation? O $16,800 $15,800 $16,660 $16.200 Question 10 6.5 Which of the following best describes the entry for depreciation of Equipment? O Debit Depreciation Expense; Credit Equipment Debit Accumulated...

  • Your boss, who was in the middle of preparing the income statement for Veney, Inc., quit...

    Your boss, who was in the middle of preparing the income statement for Veney, Inc., quit and left you to finish the job. You had some doubts about the appropriate accounting treatment of the six items listed below during the fiscal year ending December 31, 2020. Assume a tax rate of 20 percent. 1. Office equipment purchased January 1, 2020 for $60,000 was incorrectly charged to Supplies Expense at the time of purchase. The office equipment has an estimated three-year...

  • Flint Inc was organized in late 2018 to manufacture and sell hosiery. At the end of...

    Flint Inc was organized in late 2018 to manufacture and sell hosiery. At the end of its fourth year of operation, the company has been fairly successful, as indicated by the following reported net incomes. 2018 $139,000- 2020 $206.000 2019 162,000 2021 279.000 Includes a $10,000 increase because of change in bad debt experience rate. includes a gain of $30,000. The company has decided to expand operations and has applied for a sizable bank loan. The bank officer has indicated...

  • UESTION 1 Beach Front Foods Inc. has decided to add a delivery service to its business....

    UESTION 1 Beach Front Foods Inc. has decided to add a delivery service to its business. At the beginning of 2020 the company purchased a car to use to deliver customer orders. The purchase price of the car included non-refundable taxes. The car was painted with the store logo and they had to purchase the annual license fee. During the year they purchased gas to run the car and paid maintenance costs. 42,000 5,800 Purchase price of car Non-refundable taxes...

  • Web Wizard, Inc., has provided information technology services for several years. The company uses the percentage of cr...

    Web Wizard, Inc., has provided information technology services for several years. The company uses the percentage of credit sales method to estimate bad debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts its records using the aging of accounts receivable method. The company entered into the following selected transactions during the first quarter of 2017: a. During January, the company provided services for $40,000 on credit. b. On January 31, the company estimated bad...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT