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Minchanka [31]
1 year ago
6

On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server

sold the machine to Patron Corporation and recorded the following entry: Cash 45,000 Accumulated Depreciation 28,000 Machine 70,000 Gain on Sale of Equipment 3,000 Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. Based on the preceding information, in the preparation of the 20X9 consolidated balance sheet, machine will be:
Business
1 answer:
djverab [1.8K]1 year ago
4 0

Based on the information given for Server Company, the machine will be valued a<u>t $42,000 </u>and the machinery account will be credited.

<h3>What would be the value of the machine?</h3>

The machine was sold on January 1, 20X9 and at that point, the accumulated depreciation was $28,000.

The value of the machine was therefore:

= Cost of machine - Accumulated depreciation

= 70,000 - 28,000

= $42,000

Find out more on accumulated depreciation at brainly.com/question/1287985.

#SPJ1

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Jameson Corporation was organized on May 1. The following events occurred during the first month.
olya-2409 [2.1K]

Answer:

Answer:

Date     General Journal                Debit          Credit

a.           Cash                                 $70,000

                   Common stock                              $5,000

                   (5*100 shares * $10)

                   Additional paid - in - capital          $65,000

b.          No journal entry required       -                      -

c.           Cash                                  $18,000

                     Notes payable (long term)             $18,000

d.            Equipment                      $11,000

                      Cash                                                $1,500

                       Notes payable (Short term)          $9,500

e.             Notes receivable          $2,000

                       Cash                                                $2,000

f.              Store fixtures                $15,000  

                       Cash                                                 $15,000

7 0
3 years ago
Which of the following statements about the income statement is false? a. The single-step format groups all income items togethe
Sophie [7]

Answer:

The statement which is false is D) .

Explanation:

Income statement helps in assessing the current and past performance of the company, it also helps in predicting the future performance and in assessing the risk present in future in obtaining cash flows. Income statement are prepared through two methods either single step format ( which is used by sole proprietor and partnership firms ) or multi step format ( used by corporations ) .

In the single step format , all the income items are group together and are subtracted from the total cost, while in multi step format , a company breaks all the sources from where the revenues and cost have come, it is used to take out various measures like gross profit, operating profit etc.

A common size statement is one of the type of income statement where each account item is represented as a percentage of total sales value.

Option D is false because discounted operations and extraordinary transactions appear on both the single step and multi step format , these transactions are written as written as footnote below the statement.

5 0
3 years ago
Which of the
Over [174]

Answer:

B...................................

7 0
1 year ago
Read 2 more answers
Dennis, age 25, needs lifetime life insurance protection. His agent showed him a chart displaying yearly renewable term premiums
Sveta_85 [38]

Answer:

Dennis, age 25, needs lifetime life insurance protection. His agent showed him a chart displaying yearly renewable term premiums and level-premiums for the next ten years. The level premiums were always higher than the yearly renewable term premiums. Based on this chart, Dennis is convinced he should purchase yearly renewable term insurance. What is Dennis overlooking?

"Age" and "Amount of coverage" is the important factor that is being overlooked.

Explanation:

"Age" and "Amount of coverage" is the important factor that is being overlooked.

In level premium insurance, premium prices remain unchanged throughout the term whereas, in yearly renewable term premiums, premium rates rise as the policies age.

Additionally, in level premium, the amount of coverage offered increases over time at no additional expense.

4 0
3 years ago
Secret Trails received payment in full within the credit period for horse boarding for $1,300 plus 4% sales tax. Terms of the sa
riadik2000 [5.3K]

The appropriate journal entry is:Debit Cash $1313; debit Sales Discount $39; credit Accounts Receivable $1352.

<h3>Journal entry</h3>

Based on the information given the correct entry to record this transaction is:

Debit Cash $1313

{$1300+[($1300×4%)-($1300×3%)]}

[$1300+($52-$39)]

Debit Sales Discount $39

($1300×3%)

Credit Accounts Receivable $1352

[$1300 + ($1300×4%)]

Inconclusion the appropriate journal entry is:Debit Cash $1313; debit Sales Discount $39; credit Accounts Receivable $1352.

Learn more about journal entry here:brainly.com/question/9701045

7 0
2 years ago
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