Answer:
gain of $6,350.
Explanation:
Depreciation expense each year = (cost of asset - residual value) / useful life
($46,200 - $6,300) / 4 = $9,975
Depreciation expense after two years = $9,975 x 2 = $19,950
Value of the equipment in two years = $46,200 - $19,950 = $26,250
If the equipment is sold for $32,600, the equipment would be sold at a profit
Profit = $32,600 - $26,250 = $6350
Answer:
Explanation:
a. Cash paid for retirement of bonds would be deducted from cash flow's financing activities by 411,000
b. Cash received from issue of common stock would be added to the cash flow statement's financing activities as 440,000 [22*20,000]
c. Cash received from sale of equipment would be added to the cash flow statement's investing activities as 60,000
d. Cash paid for purchase of land would be deducted from cash flows from investing activities by 650,000
e. Cash paid for purchase of building would result in deduction from investing activities by 50,000
f. Cash received from issued of bonds would be added to the cash flows from financing activities as 490,000
[500,000/100 * 98]
g. Cash paid for purchase of treasury stock would decrease cash flows from financing activities by 332,500
[10,000*33.25]
h. Cash paid for dividents would be deducted from cash flow from financing activities by 1,320,000
[1,000,000 - 120,000]*1.50 = 1,320,000
Answer:
Cost of Ending Inventory $ 47,077.74
Units on Hand 31 Jan = 4,600
Weighted Average Cost= $ 10.24per unit
Explanation:
We divide the total cost with the total number of units to get the weighted average cost per unit.
Sunland Company
Units Unit Cost Total Cost
Balance at January 1 9000 $9.70 $87300
Purchases: January 6 6000 10.35 62100
<u>January 26 8300 10.73 89059 </u>
<u>Total Units</u> 23,300 238,459
Sales January 7 (7400 )
January 31 (11300 )
Units on Hand 31 Jan = 4,600
Weighted Average Cost= Total Cost/ Total Units = 238,459/ 23,300 =
$ 10.235≅ $ 10.24
Cost of Ending Inventory = 4,600*$ 10.24= $ 47,077.74