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earnstyle [38]
3 years ago
10

Wells Company's delivery truck, which originally cost $70,000, was destroyed by fire. At the time of the fire, the balance of th

e Accumulated Depreciation account amounted to $47,500. The company received $40,000 reimbursement from its insurance company. Thegain or loss as a result of the fire wasa. $30,000 loss.b. $17,500 loss.c. $30,000 gain.d. $17,500 gain.
Business
1 answer:
beks73 [17]3 years ago
4 0

Answer:

D) $17,500 gain.

Explanation:

Wells Company should record the following transactions:

  • Dr  Cash account 40,000
  • Dr Accumulated Depreciation Vehicles account 47,500
  • Cr Vehicle account 70,000
  • Cr Gain on Disposal account 17,500

$40,000 in cash was received and the accumulated depreciation balance should equal to zero, therefore they must be debited.

The vehicles account balance should equal zero and the rest is gain on disposal, therefore they must be credited.

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Joseph buys a Hummer for $59,000, financing it with a five-year 7.60% APR loan paid monthly. He decides to pay an extra $50 per
Alex Ar [27]

Answer:

57.07 months.

Joseph must decide whether the 57th payment was $1,327, or he can pay a 58th payment of just $92.

Explanation:

The easiest way to calculate a monthly payment is using a payment calculator:

  • principal = 59,000
  • n = 60
  • APR = 7.6%

Monthly payments = $1,185.04

Since Joseph will pay an extra $50 each month, his payment = $1,235.04

By paying that extra amount Joseph will reduce his payments by almost 3 months to 57.07 months

After the 57th payment, Joseph' balance = $91.43, so he can decide to pay a little on the 57th payment or just pay $92 next month.  

7 0
3 years ago
If you were starting a new business, describe at least three departments to the company that you would need right away. Why are
Natali [406]

Answer:

I would need a computer and then a laptop to work fast as I can and that will make me get more money

7 0
3 years ago
You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stoc
7nadin3 [17]

Answer:

beta of stock B = 1.33

Explanation:

the beta of treasury bills is 0

the beta of stock A = 1.46

the beta of stock B = ?

the portfolio contains equal amounts of each investment and its overall beta is 0.93

0.93 = (0 x 1/3) + (1.46 x 1/3) + (B x 1/3)

0.93 = 0 + 0.4867 + 0.333B

0.93 = 0.4867 + 0.333B

0.4433 = 0.333B

B = 0.4433 / 0.333 = 1.33

4 0
3 years ago
On January 1, Year 1, Johnston Company purchased a 40% interest in the common stock of Truly Inc. for $100,000. Johnston has sig
e-lub [12.9K]

Answer:

$112,000

Explanation:

The Equity method shall be used in this question for determining book value of investment made by the Johnston company in Truly Inc because the investment gives the Johnston company the significant influence over the Truly Inc.

Under equity method, the book value of investment made by the Johnston company as at end of year 1 shall be determined as follow:

Amount invested initially                                 $100,000

Add: Net income for the year                          $20,000

(50,000*40%)

Less: dividends received                                 ($8,000)

(20,000*40%)    

Book value of investment at end of year 1      $112,000

5 0
3 years ago
Which of the following statements will an auditor most likely add to the negative from of confirmations of accounts receivable t
MrRissso [65]

Answer:

The correct answer is letter "C": "If you do not report any differences with 15 days, it will be assumed that this statement is correct".

Explanation:

Accounts Receivable, or AR, is an accounting term used to refer to the money that is owed to a company by its customers. The customers, who may be individuals or corporations, are the debtors since they owe money for the goods or services provided by the company. When the product is sold in credit the company sets a number of days so that the customer can pay the bill amount. The term usually is 30, 60 or 90 days.

In that sense, and auditor may find 15 days suitable for a debtor for report changes in a statement, otherwise, it is considered as correct.

7 0
3 years ago
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