On January 1, 2020, Pina Corporation sold a building that cost $263,240 and that had accumulated depreciation of $101,140 on the date of sale. Pina received as consideration a $253,240 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 11%. At what amount should the gain from the sale of the building be reported?

Answers

Answer 1

Answer:

Gain from sale = $23,067

Explanation:

the none interest bearing note must be recorded at present value:

present value of the note = face value / (1 + r)ⁿ

face value = $253,240r = 11%n = 3

PV = $253,240 / (1 + 11%)³ = $185,167

the note receivable must be recorded at $253,240, but $68,073 will be recorded as interest revenue.

the journal entry for the transaction should be:

January 1, 2020, sale of a building:

Dr Notes receivable 253,240

Dr Accumulated depreciation 101,140

    Cr Building 263,240

    Cr Interest revenue 68,073

    Cr Gain from sale 23,067


Related Questions

Never Forget Bakery purchased a lot in Oil City six years ago at a cost of $278,000. Today, that lot has a market value of $320,000. At the time of the purchase, the company spent $6,000 to level the lot and another $8,000 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1.03 million. What amount should be used as the initial cash flow for this project?

Answers

Answer:

The   amount that  should be used as the initial cash flow for this project is $1,350,000

Explanation:

The amount to be used as the initial cash flow for the project comprises of estimated building cost of $1.03 million and the market worth of the lot now.

The cost six years ago of $278,000,the cost of leveling as well as the cost of installing the storm drains were long ago time and are not relevant now.

In a nutshell the cost of the new project is $1,350,000($1,030,000+$320,0000)

Ellie (a single taxpayer) is the owner of ABC, LLC. The LLC (a sole proprietorship) reports QBI of $900,000 and is not a specified services business. ABC paid total W-2 wages of $300,000, and the total unadjusted basis of property held by ABC is $30,000. Ellie's taxable income before the QBI deduction is $740,000 (this is also her modified taxable income). What is Ellie's QBI deduction for 2019

Answers

Answer:

QBI deduction for 2019 is   $148,000

Explanation:

Description                                                            Amount

Taxable income before QBI deduction

exceed $207,500 threshold.

Capital investment limit is considered

QBI deduction is lesser of:

1) 20% of qualified business income                     $180,000

($900,00 × 20%)

or Greater of

2) 50% 0f W-2 wages                                             $150,000

($300,000 × 50%)

or

25% 0f W-2 wages + 2.5% of unadjustment

basis pf qualified property

($300,000 × 25%) + ($300,000 × 2.5%)                      $75,750

3)Not more than 20% of modified taxable income

($740,000 × 20%)                                                          $148,000

Therefore, QBI deduction for 2019   is   $148,000

Teel Printing uses two measures of activity, press runs, and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $7,850 per month plus $402 per press run plus $952 per book set-up. The company expected its activity in July to be 206 press runs and 113 book set-ups, but the actual activity was 203 press runs and 112 book set-ups. The actual cost for wages and salaries in July was $196,180.
The spending variance for wages and salaries in July would be closest to

Answers

Answer:

Spending variance                              $100 unfavorable

Explanation:

The spending variance is the difference between the standard cost allowed for the actual activity and the actual cost of the activity

                                                                                                    $

Standard cost allowed for the actual activity

=7,850 + (402×203) + (952×112)=                                          196,080

Actual cost                                                                                196,180

Spending variance                                                                       100 unfavorable

ASAP HELP ME PLEASE , GIVING BRAINLIEST TO CORRECT AWNSER

Answers

Answer:

A

Explanation:

Answer:

because people would have to have good contraptions in order to be able to make free choices

Explanation:

Mills Corporation's balance sheet included the following information: Accounts Receivable $ 580,000 Less: Allowance for Doubtful Accounts 73,000 Accounts Receivable, Net of Allowance $ 507,000 If the Allowance account had a credit balance of $31,500 immediately before the year-end adjustment for bad debts and no accounts were written-off or allowed for during the year, what was the amount of Bad Debt Expense recognized during the year

Answers

Answer:

The amount of Bad Debt Expense recognized during the year is $41,500.

Explanation:

Bad debt expense is an estimate of the accounts receivable that is deemed uncollectible. At times, it is determined by percentage of credit method or aging method.

If the allowance account had an opening balance of $31,500 before adjustment and there was no rite-off during the period, with a closing balance of $73,000, the bad debt expense is simply the difference between the closing balance and the opening balance, that is , $73,000 - $31,500 = $41,500.

Barbara's Bakery purchased three new 7-year assets during the current year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. What amount of depreciation expense is allowable in the current year

Answers

Answer:

Depreciation in Current year is $14,939

Explanation:

Answer:

I think it is 4748. If it asks second year, it will be 16072.

Explanation:

Furnishings...in April, second quarter:

15,000x17.85%=2677.5

Equipment...in July, third quarter:

6,000x10.71%=642.6

Appliances...in November, fourth quarter

40,000x3.57%=1428

Total: 2677.5+642.6+1428=4748

Blossom Co. leased machinery from Young, Inc. on January 1, 2020. The lease term was for 8 years, with equal annual rental payments of $5,800 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $1,500, which Blossom is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $5,000. The machinery has a useful life of 10 years and a fair value of $43,000. The implicit rate of the lease is not known to Blossom. Blossom’s incremental borrowing rate is 9%. Prepare Blossom’s 2020 journal entries

Answers

Answer and Explanation:

The Journal entry is shown below:-

1. Right of use Dr, $35,743.93

                   To lease liability $35,743.93

(Being lease assets and lease liability is recorded)

Working note as attached using spreadsheet

Here we debited the right of use as it increased the assets and we credited the lease liability as it also increased the liability

2. Lease liability Dr, $5,800

                To Cash $5,800

(Being payment on lease liability is recorded)

Here, we debited the lease liability as it decrease the liability and we credited the cash as  it decreased the asset

3. Interest expenses Dr, $2,694.95

               To Lease liability $2,694.95

(Being interest expenses is recorded)

Here we debited the interest expense as it increased the expenses and we credited the leased liability as it increased the liability

4. Amortization expenses Dr, $3,574.39    ($35,743.93 ÷ 10 )

                 To Right of use $3,574.39

(Being amortization expenses is recorded)

Here we debited the amortization expenses as it increase the expenses and we credited the right of use as it reduced the assets  

Working Note

Interest expenses = (Lease liability - First lease payment) × Incremental borrowing rate

= ($35,743.93 - $5,800) × 9%

= $2,694.95

Guarder Consulting enters into a contract with Smith Co. to restructure some of Smith's processes with a goal of cost savings. The contract states that Guarder will earn a fixed fee of $35,000 and earn an additional $10,000 bonus if Smith achieves $100,000 of cost savings. Guarder estimates a 55% chance that Smith will achieve $100,000 of cost savings. Assuming that Guarder determines the transaction price as the expected value of consideration, what transaction price will Guarder estimate for this contract

Answers

Answer:

The transaction price that Guarder will estimate for this contract is $40,500

Explanation:

In order to calculate what transaction price will Guarder estimate for this contract Assuming that Guarder determines the transaction price as the expected value of consideration, we would have to calculate the expected value of expected consideration as follows:

expected value of expected consideration=Fixed Fee + Additional Income

expected value of expected consideration=$35,000+($10,000*55%)

expected value of expected consideration=$35,000+$5,500

expected value of expected consideration=$40,500

The transaction price that Guarder will estimate for this contract is $40,500

A domestic manufacturer of watches purchases quartz crystals from a Swiss firm. The crystals are shipped in lots of . The acceptance sampling procedure uses randomly selected crystals. a. Construct operating characteristic curves for acceptance criteria of , , and (to 4 decimals). b. If is and , what are the producer's and consumer's risks for each sampling plan in part (a) (to 4 decimals)? c At Producer's Risk At Consumer's Risk

Answers

Answer:

The curve and calculation are attached below

n the Month of March, Chester Corporation received orders of 180 units at a price of $15.00 for their product Cid. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 120 units in March and the balance of 60 units in April. They received payment for 60 units in March, 60 units in April, and 60 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)

Answers

Answer:

Explanation:

Under accrual basis, revenue will recognize only after order delivered. so in march they didn't deliver any order. so income statement will report 0. in April they delivered 180 units. they can recognize a revenue of $15*180 = $2,700 in their April income statement.

So, answer will be. 0,  $2,700

You pay $20,800 to the Laramie Fund which has a NAV of $18.00 per share at the beginning of the year. The fund deducted a front-end load of 3.00%. The securities in the fund increased in value by 12% during the year. The fund's expense ratio is 1.50% and is deducted from year end asset values. What is your rate of return on the fund if you sell your shares at the end of the year

Answers

Answer:

6.92%

Explanation:

Beginning investment fund is $20,800.

Now, fund available= Beginning fund(1-front end load)

=20,800(1-0.03)=$20176

Now, the number of shares that can be brought with the available fund

[tex}\text{Number of shares}=\frac{\text{fund available}}{NAV_{beginning}}[/tex]

[tex]=\frac{20176}{18}[/tex]

=1120

Now calculating closing NAV

NAV(closing)=NAV(beginning)=(1+increased%)

=$18(1+12%)=18×1.12

=$20.16

Calculate year end asset value

Year end asset value =NAV(closing)×No. of shares

=$20.16×1120=$22579.2

Value of investment after deducting the expense ratio

Closing investment value = Year end asset value×(1-expense ratio)

=$22579.2×(1-1.5%)

=$22240.512

Now,

Return on the fund =[(closing investment value)-(Beginning investment fund)]÷Beginning investment fund

=(22240.512-20800)÷20800

=0.0692

or, 6.92%

Gratuities: A customer has a large sailing yacht on a vessel that your company will be discharging. The customer is present and is watching the off-loading operation. The five stevedores you manage pull off a very tricky maneuver, safely transferring the yacht to the trailer. The customer is elated, and reaches into his pocket, pulling out a big wad of $50 bills. What do you do?

Answers

Answer:

The answer is "Shifting".

Explanation:

Some information, that is choices is missing in the question so that the correct option can be identified as follows:

We assume, that the company is doing, as per the given scenario, it set out from the Query, the Market of Packers, and adjusting operation involving shifts to one position of industrial vehicles.

Company A sells paper coffee cups to all Caribou Coffee locations in the US. Company B sells dinner plates to Applebee’s. Company A charges $1 for a pack of 100 cups and Company B charges $3 for 1 dinner plate. Tell us exactly what information you would need to determine whether Company A or Company B has higher annual revenue and explain how you would calculate these two figures.

Answers

Answer:

Company A and Company B

Determination of annual revenue:

a) The information needed to determine which company has higher annual revenue include:

i) The annual quantities of packs of paper coffee cups sold to the Caribou Coffee locations in the US for a number of years.

ii) The annual quantities of dinner plates sold to Applebee's for the same years as above.

b) The annual revenues can be calculated by multiplying the price for a pack of 100 cups by the annual quantity sold.

Explanation:

Revenue is a function of price and quantity sold.  The price is unit selling price and the quantity depends on the period for which revenue is being computed.

Revenue is the earnings from the sale of goods and services.  The excess of revenue over cost of sales gives the gross profit, from which expenses would be deducted to arrive at net income after adding other incomes from non-operational activities.

Whiplash Ltd. makes a single product and only one type of direct material is used to make this product. Whiplash uses a standard costing system and has provided the following data concerning the production of output in July: Actual number of units of output produced 7,800 units Materials quantity variance $2,609 Favorable (F) Materials spending variance $3,744 Favorable (F) Standard amount of materials used per unit of output 5.0 grams per unit Actual total materials purchased/used 37,830 grams Actual price per gram purchased/used $2.20 per gram Assume there were no beginning or ending inventories of direct materials. The standard price per gram for Whiplash, Ltd. is closest to:

Answers

Answer:

$2 per gram.

Explanation:

We are given the following parameters in the question above; the production of output in July: Actual number of units of output produced = 7,800 units, the Materials quantity variance = $2,609, the favorable (F) Materials spending variance = $3,744, the Favorable (F) Standard amount of materials used per unit of output = 5.0 grams per unit , the Actual total materials purchased/used = 37,830 grams and the Actual price per gram purchased/used = $2.20 per gram.

(37,830 × standard price) - (37,830 × 2.2 ) =$3,744.

Thus, (37,830 × standard price) = 79482.

Approximately, standard price = $2 per gram

Answer:

The standard price per gram for Whiplash, Ltd. is closest to $2.23 per gram

Explanation:

In order to calculate the The standard price per gram for Whiplash, Ltd we would have to use the following formula:

Material quantity variance=(standard quantity-Actual quantity)×standard price

$2,609=(5 grams×7,800-37,830)×standard price

$2,609=(39,000-37,830)×standard price

$2,609=1,170 grams×standard price

standard price=$2,609/1,170 grams

standard price=$2.23 per gram

The standard price per gram for Whiplash, Ltd. is closest to $2.23 per gram

Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Production data: Pounds in process, May 1; materials 100% complete;conversion 90% complete 76,000Pounds started into production during May 410,000Pounds completed and transferred out ?Pounds in process, May 31; materials 60% complete;conversion 40% complete 36,000Cost data: Work in process inventory, May 1: Materials cost$117,900Conversion cost$53,600Cost added during May: Materials cost$613,080Conversion cost$294,700 Required:1. Compute the equivalent units of production for materials and conversion for May.2. Compute the cost per equivalent unit for materials and conversion for May.3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May.4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May.5. Prepare a cost reconciliation report for May.

Answers

Answer:

1.Total Equivalent Units   Materials    471,600  Conversion     464,400

2. Cost Per Equivalent Unit Materials $ 1.33  Conversion   $ 0.75

3. Cost of Ending Work In Process  $ 39528

4. Cost Of Units Transferred Out = $ 936,000

5. Cost Materials  $ 627 228 and Conversion $348,300

Explanation:

Builder Products, Inc.,

Weighted-Average Method

1. Equivalent Units

Particulars              Units       % of Completion       Equivalent Units

                                       Materials Conversion   Materials Conversion

Transferred Out    450000     100         100             450,000      450,000

Ending WIP           36000        60          40                21,600          14,400  

Total Equivalent Units                                              471,600       464,400

Transferred Out units are calculated by adding Opening Inventory and production started and subtracting ending inventory units.

Transferred Out units = Opening Inventory+ production started -ending inventory units

Transferred Out units =76,000 + 410,00 - 36000= 450000 units.

2. Cost Per Equivalent Units

                                                     Materials         Conversion

Cost Of Opening Inventory         117,900                 53600

Cost Added                                  613,080              294,700

Total Costs                                  624,980               348,300

Equivalent Units                         471,600                464,400

Cost per Equivalent Unit            624980/471600        348300/464400

                                                      $ 1.33                           $ 0.75

3. Cost of Ending Work In Process  $ 39528

Materials = 21600 * $ 1.33= $ 28728

Conversion = 14400 * $ 0.75=  $10800

We multiply the equivalent number of units with the cost per unit to find the cost.

4. Cost Of Units Transferred Out = $ 936,000

Materials = 450 000 * $ 1.33= $ 598,500

Conversion = 450000 * $ 0.75 =  $ 337,500

5. A Cost Reconciliation Report

                                      Materials              Conversion

Ending WIP                     $ 28728                  $10800

Transferred Out                $ 598,500             $ 337,500

Total                                 627 228**                 348,300

These calculated costs reconcile with the costs given in the above data.

                                                   Materials              Conversion

Cost Of Opening Inventory         117,900                 53600

Cost Added                                  613,080              294,700

Total Costs                                  624,980**               348,300

The difference is in the cost of materials which is actually 624,980** and we found it out to be 627 228**  . This is because we rounded the Cost per Equivalent Unit of material from $ 1.325 to $1.33

If we multiply 1.325 *  471,600  we get $ 624870 which is almost the same.

Suppose Mr. Lane just bought a share of BlueWind Co., a renewable energy startup. BlueWind promises to pay Mr. Lane $18 in dividends for one year and then the firm will shut down. Suppose that the liquidation value of the share is $3, and the rate of time preference is 5%. Then, according to the single-period dividend discount model, the present value of the cash payment received by Mr. Lane in one year would be

Answers

Answer:

The present value of the cash payment is $20

Explanation:

The present value of cash payment receivable by Mr Lane in one year's time is the today's equivalent amount of the dividend of $18 as well as the liquidation value of $3.

The present value is the total cash inflows multiplied by the discount factor

discount factor=1/(1+r)^n

where is the rate of time preference of 5%'

n is 1 i.e in one year's time

total cash inflows=$18+$3=$21

discount factor =1/(1+5%)^1=0.95238

present value of cash payment=0.95238*$21=$20

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 86000 units on hand, the sales department budgeted sales of 370000 units in June, and the company desires to have 160000 units on hand on June 30. The budgeted cost of goods sold for June would be

Answers

Answer:

The budgeted cost of goods sold for June would be $ 13,320,000

Explanation:

Budgeted cost per unit = $30

Sales budget = 370,000 units

Less: Beginning inventory = 86,000 units

Add: Ending inventory = 160,000 units

Therefore budgeted cost of goods sold for June = (370,000 - 86,000 + 160,000) × $30

= 444,000 × $30

= $13,320,000

Stahlmaere Inc. is a start-up company that manufactures simple machines. It is interested in analyzing the profit from a new machine using Monte Carlo simulation. It wants to investigate the profit resulting from a selling price of $150 per unit. The setup and advertising costs are known to total $75,000. They assume that the demand for the product is normally distributed with a mean of 1500 units and a standard deviation of 100 units. The company estimates that the raw material cost per unit is uniformly distributed between $5 and $6. The labor cost per unit is assumed to follow a discrete uniform distribution from $12 to $16. A junior analyst has devised the following Excel spreadsheet that simulates a single scenario using the information given above: Selling price per unit = 150 Set up and advertising cost = 75000 Demand = =NORM.INV(RAND(),1500,100) Raw material cost per unit = =5+(6-5)*RAND() Labor cost per unit = =RANDBETWEEN(12,16) Profit = =(B1*B4)-B2-((B5+B6)*B4) Copy-and-paste the above information into cells A1:B8 of an Excel spreadsheet. Then use a data table to repeat the simulation 1000 times. From the simulation results, estimate Stahlmaere's expected mean profit. Understanding that simulation is random in nature and that your estimate is unlikely to match any of the answer choices exactly, choose the answer choice that is closest to the estimated mean profit.

A. $180,000
B. $50,000
C. $150,000
D. $90,000
E. $120,000

Answers

Answer:

$ 120,000

Explanation:

Formulas:

Cell        Formula

B4          =NORMINV(RAND(),1500,100)

B5          =5+(6-5)*RAND()

B6          =RANDBETWEEN(12,16)

B8          =(B1*B4)-B2-((B5+B6)*B4)

B12         =AVERAGE(F3:F1002)

Enter formula = B8 in cell E2

and =RANDBETWEEN(12,16) in E3 copy down to E1002 (this represents labor cost)

To create the data table, select range E2:F1002

click Data tab > What-If Analysis in Data Tools group > Data Table > In the resulting dialogue box, enter B6 in the Column Input cell, and B1 in the Row Input cell.

Estimated mean profit = $ 121,445 this is closest to $ 120,000

THE ANSWER IS $ 120,000

A well-known financial writer argues that he can earn 148 percent per year buying wine by the case. Specifically, he assumes that he will consume one $12 bottle of fine Bordeaux per week for the next 12 weeks. He can either pay $12 per week or buy a case of 12 bottles today. If he buys the case, he receives a 9 percent discount and, by doing so, earns the 148 percent. Assume he buys the wine and consumes the first bottle today. Calculate the EAR.

Answers

Answer:

EAR = 148%

Explanation:

calculating the EAR ( applying the formula for present value of annuity )

cost of case = 12 * 12 * ( 1 - 0.09 ) = 131.04

Pv   =  131.04

cost per case =  $12

no of weeks = 12 weeks

rate of the wine per ( IRR ) = IRR(57;56;55;;;;1)=  1.76319

rate of the wine per week = 1.76319%

therefore EAR = ( 1 + 0.0176319) ^52 - 1 = 148.15% ≈ 148%

Bonnie Jo purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $3,000. Bonnie Jo used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Bonnie did not place the property in service in the last quarter.)

Answers

Answer:

$360

Explanation:

The computation of the depreciation deduction during the first year is shown below:

= Basis of the camera × given percentage × weightage

= $3,000 × 60% × 20%

= $360

Since the 60% is used for business and 40% used for personal

And there is a recovery period of assets of 5 years so  half year convention period applies

Job 397 was recently completed. The following data have been recorded on its job cost sheet. Direct materials $59,400 Direct labor-hours 1,254 DLHs Direct labor wage rate $11 per DLH Number of units completed 3,300 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $37 per direct labor-hour. Required: What's the unit product cost that would appear on the job cost sheet for this job

Answers

Answer:

$36.24

Explanation:

The computation of unit product cost is shown below:-

Unit product cost = Direct material + Direct labor + Manufacturing overhead) ÷ Unit completed

= ($59,400 + (1254 × $11) + (1254 × $37)) ÷ 3,300

= ($59,400 + $13,794 + $46,398) ÷ 3,300

= $119,592 ÷ 3,300

= $36.24

Therefore for computing the units product cost we simply applied the above formula.

niversal Studios sold the Mamma​ Mia! DVD around the world. Universal charged​ $21.40 in Canada and​ $32 in Japanlong dashmore than the​ $20 it charged in the United States. Assume​ Universal's marginal cost of production​ (m) is ​$1.20. Determine what the elasticities of demand must be in Canada and in Japan if Universal is profit maximizingLOADING.... The elasticity of demand in Canada must be epsilon Subscript Upper Cequals nothing. ​(Enter a numeric response using a real

Answers

Answer:

Explanation:

Lerner Index = -1 / Elasticity of demand = (P - MC) / P

(1) Canada:

- 1 / Ec = (21.4 - 1.20) / 21.4

- 1 / Ec = 20.2 / 21.4

- 1 / Ec = 0.9344

Ec = -1 / 0.9344

Ec = - 1.059

(2) Japan:

Lerner Index = -1 / Elasticity of demand = (P - MC) / P

- 1 / Ej = (32 - 1.2) / 32

- 1 / Ej = 30.8 / 32

- 1 / Ej = 0.9625

Ej = -1 / 0.9625

Ej = - 1.039

Which of the following would shift the long-run aggregate supply curve right? a. both an increase in the capital stock and an increase in the price level b. an increase in the capital stock, but not an increase in the price level c. an increase in the money supply, but not an increase in the capital stock d. neither an increase in the money supply nor an increase in the capital stock

Answers

Answer:

b. an increase in the capital stock, but not an increase in the price level.

Explanation:

In order to understand both short-run economic fluctuations and how the economy movement from short to long run, we need the aggregate supply and aggregate demand model.

An increase in the capital stock, but not an increase in the price level would shift the long-run aggregate supply curve right.

The long-run aggregate supply curve would shift rightward when immigration from foreign countries rises or technology improves.

When the price level rises, the wealth effect and the interest-rate effect provide incentives for consumers to spend less. The price level of goods and services in an economy influences the exchange rate, imports and exports

In January 2020, Sunland Company, a newly formed company, issued 10300 shares of its $8 par common stock for $13 per share. On July 1, 2020, Sunland Company reacquired 1030 shares of its outstanding stock for $10 per share. The acquisition of these treasury shares decreased total stockholders' equity. increased total stockholders' equity. did not change total stockholders' equity. decreased the number of issued shares.

Answers

Answer:

The correct option is the acquisition of these treasury shares decreased total stockholders' equity.

Explanation:

Initially the total stockholders' equity is $133,900 ($13*10,300) which comprised of $82,400  common stock ($8*10,300) $51,500 paid in capital in capital in excess of par value.

By repurchasing 1,030 treasury stock at $10,the total stockholders' equity decrease by $10,300,which leaves a balance of $123,600 ($133,900-$10,300).

In other words,the first option is the correct choice of answer

On November 1, 2018, Green Valley Farm entered into a contract to buy a $150,000 harvester from John Deere. The contract required Green Valley Farm to pay $150,000 in advance on November 1, 2018. The harvester (cost of $110,000) was delivered on November 30, 2018. The journal entry to record the contract on November 1, 2018 includes a Group of answer choices a) credit to Accounts Receivable for $150,000 b) credit to Sales Revenue for $150,000. c) credit to Unearned Sales Revenue for $150,000. d) debit to Unearned Sales Revenue for $150,000.

Answers

Answer:

d) debit to Unearned Sales Revenue for $150,000

Explanation:

Green Valley Farm Journal entry

Dr Unearned Sales Revenue 150,000

Cr Sales Revenue150,000

Dr Cost of Goods Sold 110,000

Cr Inventory110,000

Therefore the journal entry to record the contract on November 1, 2018 is debit to Unearned Sales Revenue for $150,000

All of the following statements regarding leases are true except _______.
Multiple Choice:
A) For a finance lease, the lessee records the leased item as its own asset.
B) For a finance lease, the lessee amortizes the right-of-use asset acquired under the lease.
C) Finance leases create a liability on the balance sheet.
D) Finance leases do not transfer ownership of the asset under the lease, but operating leases often do.
E) For a short-term lease of a few days or weeks, the lessee records payments as rental expense.

Answers

Answer:

I think its D

Explanation:

Hpe this helps.

All of the following statements regarding leases are true except finance leases do not transfer ownership of the asset under the lease, but operating leases often do. Thus, option (d) is correct.

What is finance?

Finance includes borrowing money to go through tough times, saving money, and investing money. Finance is the provision of funds for credit against anything. Personal, public, and business finance are the three different categories.

Capital leases and finance leases are both common terms for the same thing. The duration of long-term leases is usually anticipated. When the operating lease expires, the leasing firm will return the asset.

Therefore, option (d) is correct.

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Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose its discount rate of 8% based on the rate of return it must pay its owners and creditors. Using that rate, Waterways then uses different methods to determine the best decisions for making capital outlays.
In 2017 Waterways is considering buying five new backhoes to replace the backhoes it now has. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes.
The following information is available to use in deciding whether to purchase the new backhoes.
Old Backhoes New Backhoes
Purchase cost when new $90,000 $200,000
Salvage value now $42,000
Investment in major overhaul needed in next year $55,000
Salvage value in 8 years $15,000 $90,000
Remaining life 8 years 8 years
Net cash flow generated each year $30,425 $43,900
Required:
1. Evaluate in the following ways whether to purchase the new equipment or overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost of the overhaul. For the new machine, subtract the salvage value of the old machine to determine the initial cost of the investment.)
a. Using the net present value method for buying new or keeping the old
b. Using the payback method for each choice. (Hint: For the old machine, evaluate the payback of an overhaul.)
c. Comparing the profitability index for each choice.
d. Calculate the internal rate of return for the new and old blackhoes.
e. Comparing the internal rate of return for each choice to the required 8% discount rate.

Answers

Answer:

Explanation:

Base on the scenario been described in the question,Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want any specific sub-part to be answered then please submit that sub-part only or specify the question number in your message.

2

Compute the net present value to make decision for buying the new Backhoes or keeping the old:

We can fine the calculations in the file attached below

Final Examination Hide or show questions Calculator Problem 9-23 (b) (LO. 2) Ricardo, who is self-employed, uses his automobile 85% for business and during 2019 drove a total of 32,200 business miles. Information regarding his car expenses is listed below. Business parking $345 Auto insurance 2,800 Auto club dues (includes towing service) 275 Toll road charges (business-related) 205 Oil changes and engine tune-ups 180 Repairs 1,890 Depreciation allowable 3,600 Fines for traffic violations (incurred during business use) 95 Gasoline purchases 4,125 What is Ricardo's deduction in 2019 for the use of his car if he uses:

Answers

Answer:

Explanation:

a) actual cost method:-

=deductions × percentage

= 345 + 205 + 85% (2800 + 275 + 180 + 1890 +3600 +4125 )

=550 + 10939.5

=11489.5 = 11490

Note :- fines are not taken.

b) automatic mileage method:-

=total number of business miles × standard rate

=32200×0.58 +345+205

=19226

On December 31, Westworld Inc. has the following equity accounts and balances: Retained Earnings, $50,500; Common Stock, $2,100; Treasury Stock, $3,100; Paid-In Capital in Excess of Par Value, Common Stock, $40,100; Preferred Stock, $8,100; and Paid-In Capital in Excess of Par Value, Preferred Stock, $4,100. Prepare the stockholders’ equity section of Westworld’s balance sheet. (Negative amount(s) should be indicated by a minus sign.)

Answers

Answer:

$101,800

Explanation:

Westworld Inc.

Stockholder's equity section

Paid in the capital:

Particulars Amount Amount

Common stock $2,100

Additional paid-in capital in excess of par value-Common stock $40,100

Total$42,200

Preferred Stock $8,100

Additional paid-in capital in excess of par value-Preferred Stock $4,100

Total $12,200

Total Paid-in capital $54,400

($42,200+$12,200)

Retained earnings $50,500

Total Paid-in capital and Retained earnings $104,900

($54,400+$50,500)

Less: Treasury stock $-3,100

Total Stockholder's equity $101,800

The value of the total stockholder's equity will be $101800.

The stockholders’ equity section of Westworld’s balance sheet will be calculated thus:

Common stock = $2100Add: Additional paid in capital = $40100Add: Preferred stock = $8100Add: Additional paid in capital for preferred stock = $4100Add: Retained earnings = $50500Less: Treasury stock = $3100Total stockholders equity = $101800

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Early in 2021, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2021 at a cost of $36 million. Of this amount, $24 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $60 million. During 2022, revenue of $18 million was recognized. Required: 1. Prepare a journal entry to record the 2021 development costs. 2. Calculate the required amortization for 2022. 3. Determine the amount to report for the computer software costs in the December 31, 2022, balance sheet.

Answers

Answer:

Dr research and development expense $24,000,000

Dr computer software costs                     $12,000,000

Cr Cash                                                                     $36,000,000                                                                      

Amortization is $3,600,000

Balance sheet balance in 2022 is $8,400,000

Explanation:

The cash of $36 million spent would be credited to cash account as an outflow of cash while $24 million would be debited to research and development expense account with the balance of $12 debited to computer software costs  as asset

amortization for 2022=cost of software*revenue in 2022/total estimated revenue=$12,000,000*$18,000,000/$60,000,000=$3,600,00

Amount of computer software at 31 December 2022=$12,000,000-$3,600,000=$ 8,400,000

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