1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Flura [38]
3 years ago
15

Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to have a salvage value of

$5,000 and an estimated useful life of 8 years. Straight-line depreciation is used. If the equipment is sold on July 1, Year 5 for $20,000, the journal entry to record the sale will include a:
Business
1 answer:
ANTONII [103]3 years ago
7 0

Answer:

The journal entry to record the sale will be:

Debit Cash (sales proceed)                  $20,000

Debit Loss on disposal                           $2,500

Debit Accumulated depreciation         $22,500

Credit Equipment cost                          $45,000

<em>(To record disposal of an equipment)</em>

Explanation:

Straight-line depreciation method is allocating the cost of an asset on a uniform basis over its useful life. The formula for this method of depreciation is: (Cost - Salvage value) / Useful life

Depreciation = ($45,000 - $5,000) / 8 years

Depreciation = $5,000 yearly

On July 1, Year 5, acummulated depreciation will be 4.5 years x $5,000 = $22,500.

Net book value of the equipment on July 1, year 5, is $22,500 ($45,000 - $22,500). When compared with the sales proceed, loss on disposal will be $2,500 ($22,500 - $20,000). The required journals were as provided above.

You might be interested in
When using a bcg matrix, a business that currently holds a large market share in a rapidly growing market and has minimal or neg
SCORPION-xisa [38]

When using a bcg matrix, a business that currently holds a large market share in a rapidly growing market and has minimal or negative cash flow would be known as a Star.

An astronomical object known as a star is made up of a bright plasma spheroid that is held together by gravity. The Sun is the star that is closest to Earth. Other stars are also visible at night with the unaided eye, but because to their great distances from Earth, they appear as stationary points of light. Many of the brightest stars have names, and the most notable stars have been grouped into constellations and asterisms. Star catalogues have been put out by astronomers that list the known stars and offer standardized stellar labels. An estimated 1022–1024 stars are present in the observable cosmos. Even so, the majority—including all individual stars outside our galaxy, the Milky Way—are invisible to the human eye from Earth.

Learn More About Star:

brainly.com/question/24493066

#SPJ4

4 0
1 year ago
On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudou
Naddika [18.5K]

Answer:

The correct answer is B. (3,375) = NA + (3,375) NA − 3,375 = (3,375) NA.

Explanation:

The question asks for the effect of the adjusting entry on December 31, Year 1, that is, the creation of the 3% allowance for uncollectible debts.

Allowance for bad debts = 3% x $112,500 = $3,375

Its effect is as follows.

Assets: Since accounts receivable (an asset) is reduced, assets are reduced  by $3,375.

Liabilities: No effect.

Equity: As Equity = Assets - Liabilities, the net effect is to reduce the equity by $3,375.

Revenue: No effect.

Expenses: Sales worth $3,375 is written off as an expense. Hence, total expenses increase by $3,375.

Net increase: As revenue remains unchanged while expenses increase by $3,375, the net increase is a negative of $3,375.

Cash flow: No effect, because there is no exchange of cash since the amount of $3,375 was never received by Loudoun Corporation.

These entries correspond to option B. which is thus the correct answer.  

8 0
2 years ago
A firm practicing third-degree price discrimination may:
nata0808 [166]

Answer:

(B) I and II 

Explanation:

Price discrimination is when a producer charges different prices for his good or service.

Third degree price discrimination is when consumers are charged different prices for the same good due to certain factors. E.g. age, gender, location.

Second degree price discrimination is when consumers who buy in bulk are given discounts.

First price discrimination is when consumers are charged different prices according to their willingness to pay. Example of first price discrimination is initially charging high prices and then reducing the price over time to sell to the more price-sensitive consumers. 

I hope my answer helps you.

6 0
3 years ago
Which of the following statements concerning family businesses is correct?
miv72 [106K]

Answer:

3. Most top managers at family firms tend to stay in their positions much longer than those at nonfamily firms.

Explanation:

A key success factors in family firms is understanding the culture. This is usually the foundation of the business.

So when family members occupy a position, they tend to stay on much longer because they have intimate knowledge of the business and the goals and objectives are personal to them.

Also loyalty tends to play a part, family members have close relationships which are long-term.

7 0
3 years ago
Suppose an economy is modeled with a production possibilities frontier or curve (PPF) for butter (vertical axis) vs. guns (horiz
Nonamiya [84]

Answer: B - a general improvement in technology affecting production of all goods

Explanation: The Production Possibility Frontier is a curve that shows the two combination of goods an economy can produce when all its factors of production are efficiently used.

Technological progress shifts the curve outward, away from the origin as more output would be produced using the same combination of factor inputs.

Shifting of resources from butter to gun would lead to movements along the curve as more gun would be produced and less butter.

Pacifism becoming less popular which increases gun production, would cause movement along the curve.

Increase in consumer desire for butter increase the amount of butter produced . This would generate a movement along the curve

4 0
3 years ago
Other questions:
  • What formula would you enter in C4 that combines A4 and B4 to
    11·1 answer
  • Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare the entry to record the dis
    13·1 answer
  • A student who is interning with your company made some updates to the music video project schedule. Unfortunately, he is still l
    9·1 answer
  • When the director/manager allows employees to guide themselves toward the goal, then a(n) _______ leadership style is being used
    11·1 answer
  • Classical economists assumed that: Spending leakages exceed spending injections. Interest rate adjustment will cause business in
    9·1 answer
  • Sue’s bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: Transaction
    6·2 answers
  • 1. Suppose that Intel is considering building a new chip-making factory. Assuming that Intel needs to borrow money in the bond m
    7·1 answer
  • Chutney Channel is a small organization based in Canada that sells specialty condiments made from local ingredients to a wide ar
    13·1 answer
  • A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The amount of the loss relat
    12·1 answer
  • Rachel's Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!