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Effectus [21]
3 years ago
8

Holman company owns equipment with an original cost of $95,000 and an estimated salvage value of $5,000 that is being depreciate

d at $15,000 per year using the straight-line depreciation method, and only prepares adjustments at year-end. the adjusting entry needed to record annual depreciation is:
Business
1 answer:
brilliants [131]3 years ago
7 0
Depreciation is a way not only to recognize the lost value over time of an asset, but also a way to recognize the expense of the asset over time. To this end, we want to see the value of the asset get smaller, and a piece of the asset on the the income statement ever period. 
The depreciation base is 95,000 -5,000 = 90,000, and the depreciation period is 90,000/15,000 = 6 years.
The journal entry every year will be 
Dec. 31
Debit: Depreciation expense 15,0000
Credit: Accumulated Depreciation       (15,000)
Accumulated depreciation is a *contra-asset* account on the balance sheet that reduces the value of the the depreciable asset. 
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the relationship between the factors of production used by a firm and the maximum output possible is called the
elena-14-01-66 [18.8K]

In economics, a factor of production, resource, or input is what is used in a production process to produce products, i.e. goods or services.

The amounts of various inputs used determine the amount of output according to a relationship known as the production function. The relationship between the inputs a firm uses and the maximum output it can produce with those inputs is called the firm's production function. Factors of production are outputs or inputs used to produce goods and services. They are the resources a business needs to make a profit by producing goods and services. Factors of production fall into four categories: Land, Labor, Capital, Entrepreneurship.

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3 0
1 year ago
Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses proces
lys-0071 [83]

Answer and Explanation:

a. The computation of cost of ending work in process inventory for materials, conversion, and in total is shown below:-

For material = 2,080 × $15.66

= $32,572.80

For conversion = 930 × $6.23

= $5,793.90

For total cost of work in process inventory = $32,572.80 + $5,793.90

= $38,366.70

b. The computation of cost of the units completed and transferred out for materials, conversion, and in total is shown below:-

For material = 21,700 × $15.66

= $339,822

For Conversion = 21,700 × $6.23

= $135,191

For total cost of completed and transferred units = $339,822 + $135,191

= $475,013

3 0
3 years ago
Since 2008, Ben has owned all 100 outstanding shares of N and M Corporation’s stock. Ben’s basis for the stock is $50,000. In 20
FromTheMoon [43]

Answer:

A. $75,000 dividend

Explanation:

This is not  a capital gain as it do not come from the change in the value of the previously owned shares this are new shares.

The shares which N and M provide in favor to Ben are an stock dividend thus, the tax treatment should be of dividends as well.

6 0
3 years ago
g Which of the following are the three factors used to determine a company's credit rating? Its current ratio, its debt-to-equit
NISA [10]

The three factors used to determine a company’s credit rating are its current ratio, its debt-to-equity ratio, and its interest coverage ratio.

<u>Explanation:</u>

  • A credit rating comes in the list of the company’s annual performance targets. It helps to decide the company’s current year progress.  
  • A company’s debt-to-equity ratio is used to know the debt of a company as compared to the total equity. If this ratio is high, the company is taking on much debt.  
  • The current ratio marks a way to compute the liquidity of the company. It shows how well a firm is placed to meet the short term obligations. Broadly, a 2-1 ratio is considered a good ratio.
  • The interest coverage ratio tells how well the company may pay its future loan payments. If the ratio is higher than 3-to-1, it suggests that the company is in a good position to make future payments.   

8 0
3 years ago
Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The
soldier1979 [14.2K]

Answer:

A) $2.50 per direct labor-hour

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

where,

Estimated manufacturing overhead = Rent on factory building  + Depreciation on factory equipment + Indirect labor + Production Supervisor's salary

= $15,000 + $8,000 + $12,000 + $15,000

= $50,000

And, the estimated direct labor hours is 20,000

So, the rate is

= $50,000 ÷ 20,000

= $2.5 per direct labor-hour

8 0
3 years ago
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