Answer:
Explanation:
Cost of machine - $80000
Useful life - 5 years
Salvage value -$5000
Depreciable amount = 80000-5000= 75000
Annual depreciation = 75000/5 = 15000
Year DR Accum Dep
Cost 8000
1 Depreciation 15000 15000
2 Depreciation 15000 30000
Year 3 Depreciation 15000 45000
Year 4 Depreciation 15000 60000
Year 5 Depreciation 15000 75000
Financial statement template
Balanced sheet
Cash asset + Non cash asset = liabilities + Equity
Cash asset + 65000 = liabilities + equity
Income statement
Revenue - expenses = Net income
Revenue - 15000 - Net Income
Answer:
The answer is:
April 10, 2019:
Dr Cash 96,900
Cr Treasury stock 91,800
Cr Paid-in capital 5,100
(to record resell of 1,700 repurchase shares at $57)
Explanation:
While the share was repurchased at $54 each; the Treasury stock account is debited at 54 x 1,700 = 91,800. Thus, when resell takes place, treasury stock account must be credited by 91,800.
Cash receipt is 57 x 1,700 = 96,900. Thus, this amount is debited in Cash Account.
The difference between the Dr Cash and Cr Treasury stock will Credited in to Paid-in Capital Account at the amount 5,100; which is also calculated as 1,700 x ( 57-54).
A shop that sells one type of thing
