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adell [148]
3 years ago
5

Rottino Company purchased a new machine on October 1, 2020, at a cost of $150,000. The company estimated that the machine will h

ave a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life.
Compute the depreciation expense under the following methods for the year indicated.
(a) Straight-line for 2020.
(b) Units-of-activity for 2020, assuming machine usage was 1,700 hours.
(c) Declining -balance using double the straight-line rate for 2020 and 2021.
Business
1 answer:
Amanda [17]3 years ago
5 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Purchasing cost= $150,000.

The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

1) Straight-line:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (150,000 - 12,000)/5= 27,600

<u>2020:</u>

Annual depreciation= (27,600/365)*92 days= $6,956.71

2) Units of activity:

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(150,000 - 12,000)/10,000]*1.700= $23,460

3) Double-declining balance:

Annual depreciation= 2*[(book value)/estimated life (years)]

Annual depreciation= 2*27,600= 55,200

<u>2020:</u>

Annual depreciation= 55,200/365*92= 13,913.42

<u>2021:</u>

Annual depreciation= [138,000 - 13,913.42)/5]*2= 49,634.63

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For 2012 Fielder Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 12,000. There wer
jonny [76]

Answer:

$2.50

Explanation:

The Earnings Per Share of a company is determined by using the formula:

EPS= (Net Income of the Company - Dividend to Preferred Shareholders) ÷ Average Outstanding Shares of the Company

Since there is no dividend to preferred shareholders

EPS= Net Income of the Company - ÷ Average Outstanding Shares of the Company

=30000 ÷ 12000

=$2.50

5 0
3 years ago
A firm has sales of $1.8 million, and 20 percent of the sales are for cash. The year-end accounts receivable balance is $225,000
Juliette [100K]

Answer:

The average collection period is 56.25 days

Explanation:

The average collection period is the number of days' sales in receivables and calculated by using following formula:

The number of days' sales in receivables = 360/Accounts receivable turnover ratio

Accounts Receivable Turnover = Net Credit Sales/Accounts Receivable

Net Credit sales = Total Sales - the sales are for cash = $1,800,000 - 20% x $1,800,000 = $1,440,000

Accounts Receivable Turnover = $1,440,000/$225,000 = 6.4 times

The number of days' sales in receivables = 360/6.4 = 56.25 days

7 0
2 years ago
E16-4. On January 1.2013, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8
coldgirl [10]

Answer:

A. Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

B.Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital $5,692,500

Explanation:

(a) Preparation of the journal entry to record the original issuance of the convertible debentures

Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

($10,000,000*8/100=$800,000)

(Being issue of share on convertible debenture)

b.Preparation of the journal entry to record the exercise of the conversion option, using the book value method

Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital$5,692,500

($3,000,000+$2,700,000-$7,500)

(Being maintain the record of outstanding conversation of debenture)

Calculation for for BONDS CONVERTED

First step is to calculate the amortization for 2013

Amortization for 2013=$10,000,000/20

Amortization for 2013=$500,000

Second step is to calculate the amortization for 2014

Amortization for 2014=$10,000,000/20

Amortization for 2014=$500,000

Third step is to Calculate the premium on bonds payable

Premium on bonds payable=$10,000,000−($500,000+$500,000)

Premium on bonds payable=$9,000,000

Now let calculate the bonds converted

Bonds converted=$9,000,000×30/100

Bonds converted=$2,700,000

Calculation for COMMON STOCK

First step is to calculate the number of bonds

Number of bonds=$10,000,000/1000

Number of bonds=10,000

Second step is to calculate Price for the bond

Price for the bond=10,000×5

Price for the bond=50,000

Third step is to Calculate for Stock Split

Stock Split=50,000/2

Stock Split=25,000

Now let calculate the common stock

Common stock=25,000×30/100

Common stock=7,500

Calculation for BONDS PAYABLE

Bonds Payable=10,000,000×30/100

Bonds Payable=3,000,000

6 0
2 years ago
Read 2 more answers
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slega [8]

Answer:

No, a contract has not been form because the offer has been revoked

Explanation:

an offers can be terminated if there is rejection of offer by the offeree. an offer can be revoked before its has been accepted. Since the revocation is made known to Joe before the letter of acceptance reach joe. No contract has been form.

Acceptance or rejection of offer can be done orally or written. orally can be through phone communication.

the phone call can also be a form of rejection of offer which has been declared by the offeree.

4 0
2 years ago
A random sample of 84 shoppers were interviewed and 51 said they prefer to shop alone rather than with someone else. let p repre
Dmitry [639]
The point estimate or p hat is a single value that shows the best estimation of a certain parameter among a population.

To calculate point estimate, we divide the parameter by the whole population.

In case of this problem:
p hat = 51/84 = 0.607

To get the percent, we multiply the output by 100:
% of point estimate = 0.607 x 100 = 60.7%
7 0
3 years ago
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