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
AleksAgata [21]
3 years ago
10

Suppose a piece of plant equipment that PepsiCo put into service on January 1, 2014, at a total cost of $300,000 with an expecte

d useful life of 5 years and a salvage value of $60,000 is sold on June 30, 2018, for $60,000. The accumulated depreciation is $216,000.
What would the journal entry look like to record this sale?
Business
1 answer:
Iteru [2.4K]3 years ago
7 0

Answer:

Juen 30 2018 Cash                                                  $60000 Dr

                       Accumulated Depreciation              $216000 Dr

                       Loss on Disposal-Plant Equipment  $24000 Dr

                                   Plant Equipment                           $300000 Cr

Explanation:

The sale of an asset requires a firm to write off that asset from the books at cost. The writing off would require the credit to the asset account at cost along with a debit to the accumulated depreciation account that is created against this asset.

We also calculate the gain or loss on disposal of asset. An asset has a gain on disposal if the cash received from its sale is more than its carrying value and vice versa.

Carrying Value = Cost - Accumulated Depreciation

Carrying value = 300000 - 216000 = $84000

The asset loss on disposal = 60000 - 84000 = 24000 loss

We debit the loss on disposal and cash received from sale to complete the journal entry

You might be interested in
Income elasticity of demand is
coldgirl [10]

Answer: Option (a) is correct.

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded with change in the income level of an individual.

Income\ elasticity\ of\ demand=\frac{percentage\ in\ quantity\ demanded}{percentage\ change\ in\ income}

Income of an individual has a positive relationship with the demand for normal goods and has a negative relationship with the demand for inferior goods.

3 0
3 years ago
Read 2 more answers
Which of the following statements is​ FALSE? A. According to the constant dividend growth​ model, the value of the firm depends
Vedmedyk [2.9K]

<u>A. According to the constant dividend growth​ model, the value of the firm depends on the current dividend​ level, divided by the equity cost of capital plus the grow rate.</u>

This is the false statement.

<u>Explanation</u>:

The fair value of stock can be calculated using the dividend growth model. While calculating the value of the stock, the growth of the dividends should be considered either in a stable rate or at a different rate during the period at hand.

The dividend growth model is also known as a <u>valuation model</u> as it is used to achieve the value of the stock.

Equity cost is the cost that the firm owes to the equity investors to compensate the risk of their investment.

4 0
3 years ago
Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,1
Firdavs [7]

Answer:

a. 1.14

Explanation:

The current ratio is a financial measure that shows how many times the current assets of an entity may be used (covers) the current obligations (liabilities) of the entity.

It is given as current assets divided by current liabilities.

Astin Company’s current ratio

= $82530/$72120

= 1.14

This means that the current assets will settle the current liabilities 1.14 times.

6 0
3 years ago
A t-shirt maker would be willing to supply 75 t-shirts per day at a price of $18.00 each. At a price of $20.00, the t-shirt make
pav-90 [236]

Answer:

c. 2.71, and supply is elastic.

Explanation:

The formula to compute the price elasticity of supply is shown below:

Price elasticity of supply = (Percentage change in quantity supplied ÷ percentage change in price)        

where,  

Change in quantity supplied is

= Q2 - Q1

= 100 t-shirts - 75 t-shirts

= 25 t-shirts

And, an average of quantity supplied is

= (100 + 75) ÷ 2

= 87.5

Change in price is

= P2 - P1

= $20 - $18

= $2

And, the average of price is

= ($20 + $18) ÷ 2

= 19

So, after solving this, the price  elasticity of supply  is 2.71

3 0
3 years ago
True or false: every sigma chi committee, including the executive committee and education and leadership board, have at least on
xeze [42]
YES ALL MAJOR COMMITTES AND BOARDS OF THE GENERAL FRATERNITY
4 0
3 years ago
Other questions:
  • What is the name for utter business ruin or failure
    15·1 answer
  • What is it called when an identity thief calls or emails you pretending to be someone else in order to get your personal informa
    8·2 answers
  • A sole priorietorship is a business that is owned by a number of people?<br><br> True or false?
    8·1 answer
  • What will happen to the demand curve if government regulations require that all households have at least 2 carbon monoxide alarm
    15·1 answer
  • Illustrate how a liberalized global economy can influence upon natural resources concerning the granting of logging franchise ri
    9·1 answer
  • Crane Company received proceeds of $799000 on 10-year, 9% bonds issued on January 1, 2019. The bonds had a face value of $848000
    12·1 answer
  • The trial balance of Blues Traveler Corporation does not balance.
    6·1 answer
  • Thế nào là dãy số thời kỳ
    15·1 answer
  • To improve its standard of living, a nation’s economy must _____.
    5·1 answer
  • In what specific ways do you see yourself as being a part of a globalized world?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!