In a society with a market economy, property rights are generally enforced by

Equipment was purchased at a cost of $52,000. It had an estimated useful life of seven years and a residual value of $3,000. Ass

Gnesinka [82]

D) a debit to gain on Sale of Asset

The transaction is going to be between Accumulated Depreciation account and Gain on Sale of Asset. The Depreciation account would be credited whiles the Gain on Asset account is Debited.

Explanation:

Cost = $52,000

Estimated useful life = 7 years

Residual value = $3,000

Depreciation for each year

($52,000 -$3,000) / 7 years = $7,000

Accumulated Depreciation as at year 6

$7,000 * 6 years = $42,000

Carrying amount as at the end of year 6 is

$52,000 - $42,000 = $10,000

Sales price is $14,000.

Profit or loss on sale

(sales price - carrying amount)

$14,000 - $10,000 = $4,000

Therefore the profit/gain on sale of asset of $4,000 will be debited in the gain on sale of asset account.

5 0

3 years ago

Because the auditors of XYX Company accepted a client firm’s questionable financial statements when the infractions have occurre

OverLord2011 [107]

Answer: setting ill-conceived goals

Explanation:

3 0

2 years ago

Nolan Company's cash account shows a $21,268 debit balance and its bank statement shows $19,711 on deposit at the close of busin

dusya [7]

Answer:

Balance at Bank as per the Cash Book $21,250

Add Unpresented Checks :

Outstanding checks $2,231

Less Lodgements not yet credited :

Cash Receipts - Night Depository ($3,801)

Balance as per Bank Satement $20,400

Explanation:

First bring the Cash book up to date :

Cash Book Bank Balanace

Debits :

Bank Balance as of June 30 $21,268

Error - Overstated Check $9

Totals 21,277

Interest earned $31

Credits :

Bank service charges $27

Balance (Up to Date) $21,250

Totals $21,277

Then, Prepare the Bank Reconciliation Statement :

Balance at Bank as per the Cash Book $21,250

Add Unpresented Checks :

Outstanding checks $2,231

Less Lodgements not yet credited :

Cash Receipts - Night Depository ($3,801)

Balance as per Bank Satement $20,400

5 0

3 years ago

Harry, Marsha, Eve, and Don ar discussing ways to increase sales. Harry and Eve want to stick with the current sales promotion p

lana66690 [7]

Answer: Alternative resolution

Explanation: In simple words, alternative resolution refers to the conclusion taken for a dispute after considering the points made by every party involved. In such resolution no party gets full win and everyone gets to compromise a little.

In the given case, after an extensive discussion about the sales promotion techniques, Harry came out with an alternative that suits all the four parties involved.

Hence from the above we can conclude that the given case is an example of alternative resolution.

8 0

3 years ago

Larned Corporation recorded the following transactions for the just completed month.

aksik [14]

Answer:Please see answers in explanation column

Explanation:

Journal entries for Larned Corporation transactions for the just completed month.

a)To record purchase raw material

Account titles Debit Credit

Raw materials inventory $80,000

Accounts payable $80,000

b To record raw material used

Work in process inventory $62,000

Manufacturing overhead $9,000

Raw materials inventory $71,000

C) To record labor paid

Work in process inventory $101,000

Manufacturing overhead $11,000

Cash $112,000

d To record manufacturing overhead

Manufacturing overhead $175,000

Accumulated depreciation-Equipment $175,000

3 0

3 years ago