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Naddik [55]
3 years ago
11

Marigold Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200. The expected future net cash fl

ows from the use of the asset are expected to be $520,000. The fair value of the equipment is $416,000. Prepare the journal entry, if any, to record the impairment loss.
Business
1 answer:
DanielleElmas [232]3 years ago
3 0

Answer:

Dr Impairment expense (p/l)   $20,800

Cr Accumulated depreciation   $20,800

Being entries to recognize the impairment of asset.

Explanation:

An asset is said to be impaired when the carrying amount is higher than the recoverable amount. The recoverable amount is the higher of the value in use (the expected future net cash flows from the use of the asset) and the  fair value less cost to sell.

Given;

Cost = $936,000

Accumulated depreciation = $395,200

Carrying amount = $936,000 - $395,200

= $540,800

The recoverable amount is the expected future net cash flows from the use of the asset $520,000 as this is higher than the fair value of the equipment which is $416,000.

Since the carrying amount is higher than the recoverable amount, the asset is impaired.

Impairment = $540,800 - $520,000

= $20,800

The journal entries,

Dr Impairment expense (p/l)   $20,800

Cr Accumulated depreciation   $20,800

Being entries to recognize the impairment of asset.

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Sage Company had cash receipts from customers in 2020 of $137,920. Cash payments for operating expenses were $84,990. Sage has d
Triss [41]

Answer:

sales revenue for the period: $  143,900

operating expenses:               $   78,000

Explanation:

We solve for sales using the account recievable identity:

beginning account receivable + sales - collection = ending account receivable

12,330 + sales - 137,920 = 18,310

sales = 137,920 + 18,310 - 12,330 = 143,900

Then, for operating expenses, we have a prepaid expenses thus unexpired and therefore, not expenses under accrued accounting.

we solve like this:

beginning prepaid expenses    19,800

payment on expenses              84,990

total expenses payment          104,790

We now subtract the prepaid (unexpired) to get the amount accrued for the period:

104,790 - 26,790 = 78,000

4 0
3 years ago
Suppose that an American-made pair of blue jeans has a price of $80. If the exchange rate is $0.095 = 1 peso, then a Mexican con
Natasha2012 [34]

Answer:

The correct answer is 842.1 Pesos and 941.18 Pesos.

Explanation:

According to the scenario, the given data are as follows:

Price of Jeans = $80

So, if exchange rate is $0.095 = 1 pesos

Then pesos required to buy that jeans can be calculated as follows:

Pesos required = $80 ÷ $0.095

= 842.1 Pesos

And if 1 Pesos = $0.085, then

Pesos required = $80 ÷ $0.085

= 941.18 Pesos

8 0
3 years ago
Trevor’s peers were surprised when he received a promotion and suddenly became their supervisor. They thought he was rather unre
Illusion [34]

Answer: (D) Poor leader-member relations

Explanation:

 In the poor leader member relationship, the member of the group are poor and the leaders focus are mainly shift away from the task in type specific group. It raises the poor conflicts and behavior in the relations of the group members.

The contingency model is one of the important business contingency theory which focus on the leadership effectiveness in the specific organization. This theory is mainly developed by the Fred fiedler.

Therefore, Option (D) is correct.

3 0
3 years ago
Which of the following terms refers to a practice of allowing the addition of new employees and jobs to existing bargaining unit
Serjik [45]

Answer:

d. accretion

Explanation:

Accretion is the process by which new employees are added to a bargaining unit where they have common interest. It involves the gradual growth of business units. For example when unions transfer workers to a new employer.

Accretion occurs without election and is usually an operation of the law.

It helps preserve industrial stability by filling new jobs without going through an adversarial election process.

5 0
3 years ago
Under the mudarabah banking system, when an Islamic bank lends money to a business Multiple Choice it charges that business inte
Vikki [24]

Answer:

It takes a share in the profits that are derived from the investment.

Explanation:

The Mudarabah banking system is a financial concept that is structured on partnership, wherein one partner is the financier (rabbulma) while the other partner is responsible for the supply of labor and skills (mudarib) for the management of the capital invested in the business. Consequently, the factors of production in this system are, labor, capital and entrepreneurship.

The Mudarabah is of two types:

1. Restricted mudarabah: if the financier states a particular business for which the capital is to be invested in.

2. Unrestricted mudarabah: if the financier permits the fund manager or entrepreneur (mudarib) to invest the capital in any business of choice.

Under the mudarabah banking system, when an Islamic bank lends money to a business, it takes a share in the profits that are derived from the investment for a specific period of time.

Hence, it's a banking system peculiar to the Islamic world and the contractual partners shares profit and loss based on a pre-defined and agreed ratio.

7 0
2 years ago
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