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MariettaO [177]
3 years ago
12

Abbott Landscaping purchased a tractor at a cost of $40,000 and sold it three years later for $20,300. Abbott recorded depreciat

ion using the straight-line method, a five-year service life, and a $2,500 residual value. Tractors are included in the Equipment account. Assume the tractor was sold for $12,700 instead of $20,300. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
dsp733 years ago
4 0

Answer:

The Journal entries are as follows:

(i) Sale of Equipment

Cash A/c                                       Dr. $20,300

Accumulated Depreciation A/c   Dr. $22,500

To Equipment                                                      $40,000

To Gain                                                                 $2,800

(To record the sale of equipment)

(ii) Sale of Equipment

Cash A/c                                       Dr. $12,700

Accumulated Depreciation A/c   Dr. $22,500

Loss A/c                                         Dr. $4,800

To Equipment                                                      $40,000

(To record the sale of equipment)

Workings:

Accumulated Depreciation = [(40,000 - 2,500) ÷ 5] × 3 years

                                             = 7,500 × 3 years

                                             = $22,500

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Answer: break-even

Explanation:

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2 years ago
Merle Industries had been selling its product for $24 per unit, but recently lowered the selling price to $17 per unit. The comp
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Answer:

The company’s inventory be reported on the balance sheet as $3,150.

Explanation:

GAAP and IFRS requires that the inventory of the company should be recorded as Lower cost and Net realizable value of the inventory.

According to given data

Available Inventory = 210 units

Cost of Inventory = 210 units x $20 = $4,200

Net realizable value is the value of the inventory which can be recovered on the immediate sale. the current market value of the inventory is $15.

So,

Net realizable value is = 2,100 units x $15 = $3,150

As the Net realizable value is lower than the cost of the inventory, $3,150 should be reported as inventory on the balance sheet.

7 0
2 years ago
Lindsay​ Electronics, a small manufacturer of electronic research​ equipment, has approximately 6 comma 800 items in its invento
Nitella [24]

Answer:

99 items

Explanation:

Total number of items = 6,800

The number of items per type is:

A= 6,800*0.08\\A=544\ items\\B= 6,800*0.34\\B=2,312\ items\\C= 6,800*0.58\\C=3,944\ items

The number of items of each type counted per day is:

n_A=\frac{544}{20}\\n_A=27.2\\n_B=\frac{2312}{59}\\n_B=39.2\\n_C=\frac{3944}{121} \\n_C= 32.6\\

The total number of items counted per day is:

n = n_A+n_B+n_C=27.2+39.2+32.6\\n=99\ items\ per\ day

6 0
3 years ago
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufactu
ale4655 [162]

Answer:

$256,284

Explanation:

The computation is shown below:

First, Calculate the predetermined overhead rate per hour which equals to

=  (Estimated manufacturing Overhead cost ÷ estimated machine hours)  

= ($235,900 ÷ 20,800 hours)

= $11.34 per hour

So, the applied overhead or manufacturing overhead allocated equals to

=  Predetermined overhead rate per hour × actual machine hours

= $11.34 per hour × 22,600 hours

= $256,284

4 0
3 years ago
Leyton Lumber Company has sales of $12 million per year, all on credit terms calling for payment within 30 days, and its account
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<u>Solution and Explanation:</u>

The following formula is used in order to calculate the days sales outstanding:

Days sales out standing = ( Accounts receivable divided by Sales )  multiply with 365

= $1.5 million divided by $12 million multiply with 365

After calculating we get, 45.625 days

<u>In order to calculate the capital released, the following formula is used: </u>

Capital released $=$ Sales $*$ (DSO - Credit period) $/ 365$

=\$ 12 \text { million } *(45.625-30) / 365

= 513699

Therefore, the capital released is $513699

8 0
3 years ago
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