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sergiy2304 [10]
1 year ago
14

quizlet calaf’s drillers erects and places into service an off-shore oil platform on january 1, 2021, at a cost of $10,000,000.

calaf is legally required to dismantle and remove the platform at the end of its useful life in 10 years. calaf estimates it will cost $1,000,000 to dismantle and remove the platform at the end of its useful life in 10 years. (the fair value at january 1, 2021, of the dismantle and removal costs is $450,000.) prepare the entry to record the asset retirement obligation.
Business
1 answer:
Nostrana [21]1 year ago
4 0

quizlet calaf’s drillers erects and places into service an off-shore oil platform on january 1, 2021, at a cost of $10,000,000. calaf is legally required to dismantle and remove the platform at the end of its useful life in 10 years. calaf estimates it will cost $1,000,000 to dismantle and remove the platform at the end of its useful life in 10 years. (the fair value at january 1, 2021, of the dismantle and removal costs is $450,000.) prepare the entry to record the asset retirement obligation.

Oil Platform 450,000

Asset Retirement Obligation 450,000

What is  asset retirement obligation?

An asset retirement obligation is a contractual requirement for the retirement of a tangible long-lived asset, the timing of which may depend on the occurrence of a future event outside the control of the entity bearing the obligation.

Therefore,

Oil Platform 450,000

Asset Retirement Obligation 450,000

To learn more about asset retirement obligation from the given link:

brainly.com/question/14298631

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Stone Corporation is a manufacturing company that makes small electric motors it sells for $45 per unit. The variable costs of p
Anton [14]

Answer:

40,000 units

Explanation:

Given that,

Selling price per unit = $45 per unit

Variable cost per unit = $25

Fixed cost = $800,000

Contribution margin per unit:

= Selling price per unit - variable cost per unit

= $45 - $25

= $20

Break - Even units:

= Fixed cost ÷ Contribution margin per unit

= $800,000 ÷ $20

= 40,000 units

Therefore, the Break - Even sales in units are 40,000.

5 0
3 years ago
Assume the following information for Kingbird Corp. Accounts receivable (beginning balance) $139,000 Allowance for doubtful acco
dezoksy [38]

Answer:

Prepare journal entries of sales, collections, write offs of accounts receivable, and reverse entries:

Date        Account details and explanations      Debit          Credit

                 Accounts receivable                          944,000  

                sales revenue                                                        944,000

                 Allowance for doubtful accounts      5300

                Accounts receivable                                                    5300

                Accounts receivable                            1800

                 Allowance for doubtful accounts                                1800

                cash                                                        1800

                 Accounts receivable                                                    1800

Calculating the ending balance of accounts receivable and unadjusted ending balance of allowance for doubtful accounts:

                  particulars                                                             Amount ($)

                 beginning balance of accounts receivable           139,000

                 Add: Net credit sales                                               944,000

                 less :  Collections                                                     908,000

                 Write-offs                                                                       5,300

                  Add: Reinstated amount                                              1800

                 less:  Collections                                                            1800

                  Ending  balance of accounts receivable                169700

                   particulars                                                             Amount ($)

                 beginning balance of doubtful accounts               11,370

                 less :  Write-offs                                                        5300

                 Add: Reinstated amount                                           1800

                 Ending  balance of unadjusted  balance                 7870

                 allowance of  doubtful accounts

Preparing journal entry to record bad debt

Date    Account details and explanations         Debit          Credit

           Bad debt expense ( 169700*8%) - 7870  12789

               allowance of  doubtful accounts                            12789

7 0
3 years ago
Marco wants to cancel his department store credit card so he threw it away after he paid last month's balance. Was this a good i
ANTONII [103]

Answer:

1. No, becuase someone could steal it.

2. No, becuase the fine you get for not paying a bill will grow.

Explanation:

3 0
3 years ago
What type of debt has the highest consumer debt balance?.
Zinaida [17]

The student loan debt has the highest consumer debt balance.

Below is an explanation about student loan debt.

<h3>What is Student Loan debt</h3>

Student debt is a type of debt that is owed by a current student, a formerly withdrawn student or graduated student to a lending institution, or to a financial institution

This type of loan has the highest consumer debt balance.

Lean more about types of debt at brainly.com/question/2754850

4 0
2 years ago
Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a
maw [93]

Answer:

$36,648

Explanation:

age                                      balance     % uncollectible           total

Not past due                   $890,000               3/4%                 $ 6,675

1-30 days past due           $97,900                   2%                   $ 1,958

31-60 days past due         $44,500                   6%                  $2,670

61-90 days past due         $32,000                 16%                  $ 5,120

91-180 days past due         $23,100                40%                 $ 9,240

<u>Over 180 days past due    $16,900                65%                $10,985  </u>

Total                                  $1,104,400                                    $36,648

journal entry should be:

December 31, 202x, bad debt expense

Dr Bad debt expense 36,648

    Cr Allowance for doubtful accounts 36,648

8 0
3 years ago
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