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emmainna [20.7K]
3 years ago
9

Alliance Products purchased equipment that cost $120,000. It had an estimated useful life of four years and no residual value. T

he equipment was depreciated by the straight-line method and was sold at the end of the third year of use for $25,000 cash. Alliance should record:
Business
1 answer:
poizon [28]3 years ago
3 0

Answer:

Alliance should record a loss of $5000.

Explanation:

Depreciation : The depreciation is the amount which is charged every year. It is a decrease value in the asset due to obsolescence, tear and wear value, usage of time, etc.

There are many methods for calculation the depreciation such as straight line method (SLM), Written down value method (WDV) and many more.

In the question, the straight line method is used.

In straight line method, the deprecation is charged with same value over the useful life of asset.

So, the calculation of depreciation is given below:

Since,

The purchase amount of equipment = $120,000

Useful life  = 4 years

Salvage value = 0

Sale value at the end of the third year = $25,000 cash.

By using above information, we have to calculate the depreciation for 3 years as in the end of the 3 year, the asset is sold.

Depreciation Formula for SLM method  = (Purchase cost- Salvage value) ÷ useful life

=  ($120,000 - 0) ÷ 4

= $30,000

So, the amount of depreciation for all year is $30,000

Depreciation for 1 year = $120,000 - $30,000 = $90,000

Depreciation for 2nd year = $90,000 - $30,000 = $60,000

Depreciation for 3rd year = $60,000 - $30,000 - $25,000 = -$5000

In the 3rd year, the alliance have a loss of $5000 after selling asset.

Hence, Alliance should record a loss of $5000.

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EA4.
boyakko [2]

Answer:

Explanation:

There is the relation between the variable cost and the product cost & fixed cost and the period cost

The product cost is that cost which is used to make the product. It includes direct material, direct labor, and the manufacturing overhead

In mathematically,

Product cost = Direct material + direct labor +  manufacturing overhead

The period cost is that cost which remain fixed and is incurred when the time passes

Period cost = Salaries of sales person + delivery trucks depreciation + Repairs to office equipment + Advertising expense + usage of office supplies expense

So, the categorization is shown below:

Lumber used to construct decks ($12.00 per square foot)  = Variable cost and Product cost

Carpenter labor used to construct decks ($10 per hour)  = Variable cost and Product cost

Construction supervisor salary ($45,000 per year)  = Fixed cost and the period cost

Depreciation on tools and equipment ($6,000 per year)  =  Fixed cost and the period cost

Selling and administrative expenses ($35,000 per year)  =  Fixed cost and the period cost

Rent on corporate office space ($34,000 per year)  =  Fixed cost and the period cost

Nails, glue, and other materials required to construct deck (varies per job) =

Variable cost and Product cost

3 0
3 years ago
5. For the following observations, calculate the class width for a histogram.
Soloha48 [4]

Answer:

See Explanation

Explanation:

Given

The histogram

Required

The class width

The question is poorly formatted, as the histogram cannot be read. So, I will answer your question with the attached histogram

The class width is:

Width = Upper - Lower\ Limits

Using the first class, as reference:

Lower\ Limits = 1

Upper\ Limits = 4

So, the class width is:

Width = 4 -1

Width = 3

6 0
3 years ago
The character of a company's corporate culture is a product of:A. the shared values and core business principles and beliefs tha
natta225 [31]

Answer: Option E

               

Explanation: Corporate culture refers to the values and beliefs of an organisation that originates from its several different factors like strategy, customers and investors etc. The corporate culture of an organisation affects the attitude and behavior of all its members.

It sometimes works as a guide when the organisation faces an ethical dilemma. In a healthy corporate culture every employee in the organisation is treated with respect regardless of his or her status.

Thus, from the above we can conclude that the correct option is E.

5 0
3 years ago
Wilma, Betty, and Fred are partners who share income and losses in a 5:3:2 ratio. Wilma decides to retire from the partnership w
Hoochie [10]

Answer:

<u>debited</u>

Explanation:

Partnership refers to a mutual agreement wherein two or more individuals agree carry out a business and to share profits and losses in a specified ratio or as per the clauses of the partnership deed.

When partners retire, the balances standing to the credit of their capital accounts needs to be settled or paid off.

As per the given information, Wilma is paid $45000 in cash. The journal entry in this case would be:

Wilma's Capital A/C                                    Dr.  $45000

    To Cash A/C                                                                $45000

For the remaining balance, Wilma shall be paid in cash as follows,

Wilma's Capital A/C                                    Dr. $5000

     To Cash A/c                                                            $5000

(Being settlement of a retiring partner's capital account being recorded)

3 0
3 years ago
Javier computer services began operations in July 2017. At the end of the company prepares monthly financial statements. It has
defon

Answer and Explanation:

The adjusting entries are shown below:

a. Salaries expense Dr $1,400

        To Salaries payable $1,400

(being salaries expense is recorded)

b. Interest expense ($40,000 × 12% × 1 ÷12) $400

     To interest payable $400

(being interest expense is recorded)

c. Account receivable Dr $3,000

         To Service revenue $3,000

(being revenue is recorded)

These 3 entries should be recorded

5 0
3 years ago
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