Sellers Construction Company purchased a compressor for $115,200 cash. It had an estimated useful life of four years and a $9,900 salvage value. At the beginning of the third year of use, the company...
Sellers Construction Company purchased a compressor for $115,200
cash. It had an estimated useful life of four years and a $9,900
salvage value. At the beginning of the third year of use, the
company spent an additional $6,130 related to the equipment. The
company’s financial condition just prior to this expenditure is
shown in the following statements model:
| Assets | = | Equity | Rev. | − | Exp. | = | Net Inc. | Cash Flow | ||||
| Cash | + | Book Value of Compressor | = | Com. Stk. | + | Ret. Earn. | ||||||
| 11,780 | + | 62,550 | = | 22,200 | + | 52,130 | NA | − | NA | = | NA | NA |
Required
Record the $6,130 expenditure in the statements model under each of
the following independent assumptions: (In the
Cash Flow column, use the initials "OA" for operating activities,
"FA" for financing activities, "IA" for investing activity and "NA"
for no affect. Enter any decreases to account balances with a minus
sign.)
a. The expenditure was for routine maintenance.
b. The expenditure extended the compressor’s life.
c. The expenditure improved the compressor’s operating
capacity.
Homework Answers
| Cash + | Book value of Compressor = | Common | Ret. Earnings | Revenue- | Expenses = | Net Income | Cash Flow | ||||
| Stock + | |||||||||||
| Case-a | -6130 | -6130 | 6130 | -6130 | OA (6130) | ||||||
| Case-b | -6130 | 6130 | 0 | 0 | 0 | IA (6130) | |||||
| Case-c | -6130 | 6130 | 0 | 0 | 0 | IA (6130) | |||||
Add Answer to:
Sellers Construction Company purchased a compressor for $115,200 cash. It had an estimated useful life of four years and a $9,900 salvage value. At the beginning of the third year of use, the company...
Sellers Construction Company purchased a compressor for $115,200 cash. It had an estimated useful life of four years and a $8,800 salvage value. At the beginning of the third year of use, the company spent an additional $7,640 related to the equipment. Th
Sellers Construction Company purchased a compressor for $115,200 cash. It had an estimated useful life of four years and a $8,800 salvage value. At the beginning of the third year of use, the company spent an additional $7,640 related to the equipment. The company’s financial condition just prior to this expenditure is shown in the following statements model: Assets=EquityRev.−Exp.=Net Inc.Cash FlowCash+Book Value of Compressor=Com. Stk.+Ret. Earn.11,360+62,000=23,800+49,560NA−NA=NANA RequiredRecord the $7,640 expenditure in the statements model under each of the following independent assumptions: (In the Cash Flow...
+ Sellers Construction Company purchased a compressor for $112,000 cash. It had an estimated useful life of four ye...
+ Sellers Construction Company purchased a compressor for $112,000 cash. It had an estimated useful life of four years and a $9,600 salvage value. At the beginning of the third year of use, the company spent an additional $7,560 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Assets Equity Rev. Exp. Net Inc. Cash Flow Book Value of + Cash Com. Stk. 24,500 Ret. Earn. Compressor 11,900 +...
Sellers Construction Company purchased a compressor for $106,000 cash. It had an estimated useful life of...
Sellers Construction Company purchased a compressor for $106,000 cash. It had an estimated useful life of four years and a $12,000 salvage value. At the beginning of the third year of use, the company spent an additional $8,490 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Income Statement Stockholders' Equity Balance Sheet Assets Book Value of Compressor 59,000 Statement of Cash Flows Cash + - Com. Stk. +...
please answer ASAP thank you Sellers Construction Company purchased a compressor for $116,000 cash. It had...
please answer ASAP thank you
Sellers Construction Company purchased a compressor for $116,000 cash. It had an estimated useful life of four years and a $8,200 salvage value. At the beginning of the third year of use, the company spent an additional $9,430 related to the equlpment. The company's financial condition just prior to this expenditure is shown In the following statements model: Assets xp - Net Inc Cash Flow Cash 18,810 Book Value of Compressor 62,18e com. Stk 25,68e...
Tower Company owned a service truck that was purchased at the beginning of 2018 for $43,000....
Tower Company owned a service truck that was purchased at the beginning of 2018 for $43,000. It had an estimated life of three years and an estimated salvage value of $4,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model. Assets = Equity Revenue − Expense = Net Income Cash Flow Cash + Machine − Accumulated Depreciation = Common Stock + Retained Earnings 31,000 + 43,000 − 26,000...
Tower Company owned a service truck that was purchased at the beginning of 2018 for $46.000....
Tower Company owned a service truck that was purchased at the beginning of 2018 for $46.000. It had an estimated life of three years and an estimated salvage value of $4,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model. Assets Revenue Expense Net Income Cash Flow Cash 34,800 Machine 46,800 Equity Retained = Common Stock + Earnings 17,880 35,880 Accumulated Depreciation 28,000 NA NA NA NA In...
On December 31, Year 1, BIG Company had accrued salaries of $10.300. Required a. Record in...
On December 31, Year 1, BIG Company had accrued salaries of $10.300. Required a. Record in general Journal format the adjustment required as of December 31, Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld.) View transaction lit Journal entry worksheet < 1 Record the adjusting entry for salaries payable. Note: Enter dabits before credits General Journal Debit Credit Date December 31 Record entry Clearly View general Journal D....
Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired...
Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with 4 remaining years of legal life Goodwill $33,600 39,600 Dynamo's financial condition just prior to the acquisition of these assets is shown in the following statements model: Liab. Rev. Exp. Net Inc. Cash Flow + Assets Patent NA Cash 85,600 + Goodwill NA Equity 85,600 NA NA NA NA NA Required: a. Compute the annual amortization expense for...
Required information [The following information applies to the questions displayed belowj At the beginning of Year...
Required information [The following information applies to the questions displayed belowj At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash Inventory Land Common stock Retained earnings $ 6,900 15,000 7,000 15,000 13,900 During Year 2, the company experienced the following events 1. Purchased inventory that cost $5,200 on account from Ross Company under terms 1/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $190 were paid in cash. 2....
Diaz Company issued bonds with a $116,000 face value on January 1, Year 1. The bonds had a 8 percent stated rate o...
Diaz Company issued bonds with a $116,000 face value on January 1, Year 1. The bonds had a 8 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98. The straight-line method is used for amortization. Required a. Use a financial statements model like the one shown next to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31,...
+ Sellers Construction Company purchased a compressor for $112,000 cash. It had an estimated useful life of four years and a $9,600 salvage value. At the beginning of the third year of use, the company spent an additional $7,560 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Assets Equity Rev. Exp. Net Inc. Cash Flow Book Value of + Cash Com. Stk. 24,500 Ret. Earn. Compressor 11,900 +...
Sellers Construction Company purchased a compressor for $106,000 cash. It had an estimated useful life of four years and a $12,000 salvage value. At the beginning of the third year of use, the company spent an additional $8,490 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Income Statement Stockholders' Equity Balance Sheet Assets Book Value of Compressor 59,000 Statement of Cash Flows Cash + - Com. Stk. +...
please answer ASAP thank you
Sellers Construction Company purchased a compressor for $116,000 cash. It had an estimated useful life of four years and a $8,200 salvage value. At the beginning of the third year of use, the company spent an additional $9,430 related to the equlpment. The company's financial condition just prior to this expenditure is shown In the following statements model: Assets xp - Net Inc Cash Flow Cash 18,810 Book Value of Compressor 62,18e com. Stk 25,68e...
Tower Company owned a service truck that was purchased at the beginning of 2018 for $46.000. It had an estimated life of three years and an estimated salvage value of $4,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model. Assets Revenue Expense Net Income Cash Flow Cash 34,800 Machine 46,800 Equity Retained = Common Stock + Earnings 17,880 35,880 Accumulated Depreciation 28,000 NA NA NA NA In...
On December 31, Year 1, BIG Company had accrued salaries of $10.300. Required a. Record in general Journal format the adjustment required as of December 31, Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld.) View transaction lit Journal entry worksheet < 1 Record the adjusting entry for salaries payable. Note: Enter dabits before credits General Journal Debit Credit Date December 31 Record entry Clearly View general Journal D....
Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items: Patent with 4 remaining years of legal life Goodwill $33,600 39,600 Dynamo's financial condition just prior to the acquisition of these assets is shown in the following statements model: Liab. Rev. Exp. Net Inc. Cash Flow + Assets Patent NA Cash 85,600 + Goodwill NA Equity 85,600 NA NA NA NA NA Required: a. Compute the annual amortization expense for...
Required information [The following information applies to the questions displayed belowj At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash Inventory Land Common stock Retained earnings $ 6,900 15,000 7,000 15,000 13,900 During Year 2, the company experienced the following events 1. Purchased inventory that cost $5,200 on account from Ross Company under terms 1/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $190 were paid in cash. 2....
Diaz Company issued bonds with a $116,000 face value on January 1, Year 1. The bonds had a 8 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98. The straight-line method is used for amortization. Required a. Use a financial statements model like the one shown next to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31,...
Most questions answered within 3 hours.
-
bulk flow (in respiration) moves blood from?
Air in and out of lungs?
air into lungs?...
asked 2 minutes ago -
Which of the following describes a private network?
1. A wide area network (WAN) linking sites...
asked 16 minutes ago -
The purpose of this
lab: Wireshark Intro Lab
is to get students
familiar with the use of...
asked 25 minutes ago -
Question 3
A 50 percent deduction is allowed for amounts paid or incurred for
dues and...
asked 23 minutes ago -
Assuming that the wave speed varies little when sound waves are
traveling through a material that...
asked 38 minutes ago -
The rise of online shopping and Amazon, in particular, has
created major dilemmas for large food/CPG...
asked 37 minutes ago -
Is oxygen difluoride polar or nonpolar?
nonpolar
polar
ionic
none of the above
asked 49 minutes ago -
Starting from rest, a car accelerates at a constant rate of 2.6
m/s2 for a time...
asked 46 minutes ago -
A pharmaceutical company wants to answer the question whether
time for a drug in pill form...
asked 48 minutes ago -
) Assume that in the market for widgets, demand is highly
elastic compared to supply. If...
asked 59 minutes ago -
Why is a personal interview the most important step in the sales
selection process? What are...
asked 1 hour ago -
In Python rOverlap (x1, y1, w1, h1, x2, y2, w2, h2) A rectangle
is axis-aligned if...
asked 1 hour ago