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Ann [662]
3 years ago
5

Oil Products Company purchases an oil tanker depot on January 1, 2017, at a cost of $600,000. Oil Products expects to operate th

e depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $75,000 to dismantle the depot and remove the tanks at the end of the depot's useful life. Prepare the journal entries to record the depot (considered a plant asset) and the asset retirement obligation for the depot on January 1, 2017,
Business
1 answer:
anzhelika [568]3 years ago
4 0

Answer:

The Journal entries are as follows:

(i) On January 1, 2017

Plant Assets A/c Dr. $600,000

      To cash                                 $600,000

[To record the depot]

(ii) On January 1, 2017

Plant Assets A/c Dr. $41,879

       To To Asset retirement obligation $41,879

[To record the Asset retirement obligation]

Missing information: Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2017, is $41,879.

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Which of the following tasks is an example of how scientists might use writing skills in their jobs?
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To write down the conclusion of there experiment so other scientist can criticize them and help the get the right conclusion 
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3 years ago
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Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as he lives. Based on IRS tabl
Brilliant_brown [7]

Answer:

B. $80

Explanation:

The annuity exclusion ratio is ($4,800/($100*240))= 20% return of capital per payment. Hence, $80 of the $100 monthly payment is include in gross income

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3 years ago
Refurbish, Inc. bought 1,000 shares of its own stock at $8 a share. Later, it reissued the shares for $10,000. The effect of the
IRINA_888 [86]

Answer:

$10,000 increase in stockholder equity

Explanation:

The buying of treasury stock reduces the balance of stockholder equity but when the treasury stock is reissued or we can say after purchase, the sale of treasury stock is done for $10,000. So, it increases the balance of  stockholder equity

It means that the purchase of treasury stock has an adverse impact on stockholder equity whereas reissued shares have a positive impact on stockholder equity

7 0
3 years ago
Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter’s pro
VLD [36.1K]

Answer:

raw materials    197900

accounts payable   197900

WIP   161830

factory overhead   5270

raw materials   167100

WIP   85500

factory overhead   7600

wages payables   93100

factory overhead   53000

accounts payable   53000

factory overhead   17150

acc. Dep-equipment   17150

dep expense*   14800

acc. Dep- Off Building   14800

WIP**   70965

factory overhead   70965

Finished Goods***   251747

WIP inventory   251747

Explanation:

* as the building is not related to the manufacturing process we cannot capitalized through inventory We will record as cost ofo the period therefore, depreciation expense

** the aplied overhead will be the amount of direct labor added during the period time 83%

85,500 x 83% = 85,500 * 0.83 = 70,965

*** we will have to add up the jobs cost to detemrinate how much of the work in process inventory becomes finished good

Job  Materials // Labor // Overhead

A20 $  37,740  $  19,200 + 19,200 x 0.83

A21  $ 44,320  $ 23,600 + 23,600 x 0.83

A23 $  41,770   $  27,100  + 27,100 x 0.83

Total 251,747

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3 years ago
The use of capital in the production process ______.
Ray Of Light [21]

Answer:

The correct answer is letter "D": improves efficiency, increases output, and provides for growth.

Explanation:

In general, capital refers to financial resources. Capital includes financial assets used in manufacturing, as well as the machinery and equipment businesses. Investors purchase stocks or mutual funds using capital. Companies raise capital from a bond or stock sales to fund their operations. Although capital may be cash or currency, it is not the same as money.

<em>While talking about production, capital allows firms to hire qualified personnel that improves the company's efficiency which is likely to increase production or improve the quality of the output. Eventually, both an increase in efficiency and output contributes to the growth of an institution in the form of more profits.</em>

7 0
3 years ago
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