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Effectus [21]
3 years ago
13

Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare the entry to record the dis

posal of the machine on January 1 in each seperate situation. a) The machine needed extensive repairs and was not worth repairing. b) Diaz disposed of the machine, receiving nothing in return. c) Diaz sold the machine for $35,000 cash. d) Diaz sold the machine for $68,000 cash. e) Diaz sold the machine for $80,000 cash.
Business
1 answer:
Vinvika [58]3 years ago
8 0

Answer: There will be separate entries for all the situations.

<u>Explanation:</u>

Entry 1 Loss on disposal of the machine 68000                      Accumulated depreciation of the machine 182000                       machine 250000    

Entry 2 Cash 35000

Loss on sale of machines 33000

Accumulated depreciation 182000

machine 25000

Entry 3 Cash 68000

Accumulated depreciation - machine 182000

machine 250000                                                                                                                                                    

Entry 4 Cash 80000  

Accumulated depreciation - machine 182000

Gain on sale of machine 12000

machine 250000                                                                            

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Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 45,000 Sales tax 2,200 Freight cha
olganol [36]

Answer and Explanation:

The journal entries are shown below:

1. Equipment($45,000 + $2,200 + $700 + $1,000) $48,900  

                 To Accounts payable  $47,200    ($45,000 + $2,200)

                 To Cash  $1,700

(Being the equipment is purchased on cash and credit)

Since the equipment is purchased so it would be debited and the other two accounts i.e account payable and the cash is credited

2.Prepaid insurance $900  

              To Cash  $900

(Being the payment is recorded)

Since there is a prepaid insurance and the same is increased in assets so it would be debited and the cash is paid so it would be credited

3 0
3 years ago
Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote
4vir4ik [10]

Answer: Option (d)

Explanation:

Under this case the write off will be as follow:

                                                                      Debit         Credit

Allowance for doubtful accounts                25,200  

Accounts receivables                                                     25,200

Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.

4 0
3 years ago
If anderson applies the initial value method in accounting for kenneth, what is the consolidated balance for the equipment accou
Xelga [282]

If Anderson applies the initial value method in accounting for Kenneth, the consolidated balance for the Equipment account as of December 31, 2021 will be $1,104,000.

Excess amortizations: (120,000 - 90,000 = 30,000/10 = 3,000 per year).

2021 Balance Goehler BV 975,000 + Kenneth BV 105,000 + Fair value adjustment 30,000 - amortization for 2017 and 2018 (3,000 × 2) = 1,104,000

What is Equipment account?

Equipment is a long-term asset account that records the cost of the equipment and is noncurrent. The income statement account will be debited for equipment depreciation over the course of its useful life Depreciation Expense and crediting the balance sheet account Accumulated Depreciation.

A company's usage of equipment as a type of fixed asset is recorded on the balance sheet under the line item "property, plant, and equipment" in the long-term assets section. Equipment is capitalized rather than immediately expensed when it is bought and put into operation. This makes sense given that these are regarded as concrete, long-term assets that help the company over a considerable amount of time. The cost of the assets is then written down throughout the duration of the machinery's useful life.

To know more about asset refer:

brainly.com/question/14404094

#SPJ4.

Disclaimer- The question was incomplete. Check below the full question.

Anderson Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2020, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Anderson has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2018, Anderson has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.

If Anderson applies the initial value method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

3 0
1 year ago
Explain the nature of mergers and acquisitions and the reasons why they may be used as a form of strategy development.
Drupady [299]

Answer:

Mergers and acquisitions consist of either joining two or more firms, or having one firm acquire another firm.

The rationale behind a merger or acquisiton is always strategic: a merger or an acquisition is carried out with the goal of improving the economic position and performance of the firms involved.

Some business strategies that can be implemented by a merger or acquisition are:

  • Horizontal integration: companies that sell similar products merge in order to join forces and expand their market reach.
  • Vertical integration: companies in the same industry, but that sell different products (for example, one company sells cars and the other sells bikes) merge in order to expand their market share.
  • Conglomerate formation: companies in different industries join in order to expand their markets even more.

3 0
3 years ago
A purchased limited-life intangible asset ________ amortized and is impairment tested using ________. (a)is; the recoverability
Pani-rosa [81]

Answer: Option A

Explanation: Assets having no physical existence are called intangible assets for example :- goodwill, patent rights.

Amortization can be defined as the method of distributing the value of intangible assets over its useful life, thus for amortization the asset must have a definite life.

While amortizing , first its recoverability is evaluated by comparing fair value with carrying value and after that the difference in both is calculated.

7 0
3 years ago
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