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
Artemon [7]
3 years ago
15

During the current year, Vann County’s motor pool internal service fund sold two vehicles for $5,000. The vehicles had a cost of

$6,000 and a carrying value of $4,000. How should Vann County’s motor pool internal service fund report this transaction in its fund financial statements?
Business
2 answers:
Anni [7]3 years ago
5 0

Answer:

Gain of $1000

Explanation:

Looking at the question, it is evident that the company is using the accrual basis of accounting, hence the reporting should be done simply  by showing a revenue of $5000(Proceeds) minus the carrying value given i.e. $4000.

Hence a gain of $1000.

Hope this helps you. Good Luck.

goldenfox [79]3 years ago
4 0

Answer:

Income Statement

<u>Non- Operating Income Section</u>

Increase Profit On Sale of Non-Current assets with  $ 1000

Statement of Financial Position

<u>Non-Current Assets Section</u>

Decrease Vehicle Costs with $6,000

Decrease Accumulated Depreciation on Vehicles with $2,000

<u>Current Assets Section</u>

Increase Cash Balances with $5,000

Explanation:

Vann County has just disposed of its Vehicles and the transaction must be treated as a disposal of a non-current Asset.

The Journal entry to Record the disposal is shown as follows:

Cash $5,000 (debit)

Accumulated Depreciation $2,000 (debit)

Profit On Sale of Vehicles $ 1000 (credit)

Vehicles $6,000 (credit)

Thus a Profit on Disposal of $1,000 has been made

You might be interested in
The probability of getting a 5 when a die is tossed is what type of probability?
makvit [3.9K]

Answer: As the Oxford dictionary states it, Probability means ‘The extent to which something is probable; the likelihood of something happening or being the case’.

In mathematics too, probability indicates the same – the likelihood of the occurrence of an event.

Examples of events can be :

Tossing a coin with the head up

Drawing a red pen from a pack of different coloured pens

Drawing a card from a deck of 52 cards etc.

Either an event will occur for sure, or not occur at all. Or there are possibilities to different degrees the event may occur.

An event that occurs for sure is called a Certain event and its probability is 1.

An event that doesn’t occur at all is called an impossible event and its probability is 0.

This means that all other possibilities of an event occurrence lie between 0 and 1.

Explanation:

6 0
3 years ago
Read 2 more answers
Why would the difference between income computed under full costing and income computed under variable costing be relatively sma
r-ruslan [8.4K]

First of all, we have to understand what is Full costing, Variable Costing, and JIT Inventory Management System.

Full Costing

Full costing also know as absorption costing. It allocate all cost to the specific product like fixed cost, variable cost etc.

Absorption costing consider all kind of cost whereas variable costing will only consider cost in variable in nature.

Variable Costing

Variable cost is a method were we only account for those cost that are varied over production output. It will not be a good tacker of profitability but it will help in decision making.

Inventory Management System

JIT stands for Just in Time Inventory. Where basic idea is to buy inventory whenever required, this system doesn't allow holding inventory.

Now coming to the question of why the difference is small when we are operating under JIT Inventory management System is as follows:-

1. Working capital - It is designed to be exceedingly low, so the investment in working capital is very less and will reduce inventory holding cost.

2. Obsolete inventory - Since inventory levels are so low, there is little risk of having much obsolete inventory which in turn will result in less loss.

3. Process time. A thoroughly implemented JIT system should shorten the amount of time required to manufacture products, which may decrease the quoted lead times given to customers placing orders. So the fixed cost will not be incurred on rent etc because of low/ less holding of inventory.

Because of the above factor difference is too small.

Learn more about Variable Costing here: brainly.com/question/6337340

#SPJ4

6 0
1 year ago
What is the base of Selection Process?
AlladinOne [14]

Answer:b

Explanation:

Because

6 0
3 years ago
You created a financial model for a pitchbook being presented tomorrow to a potential new client. While reviewing the final vers
sashaice [31]

Explanation:

A pitchbook is confidential document. It is basically a sales document, used by the sales force, which contains main features or attributes of the firm, the potential of the firm and the future aspects of the firm in detail.

So keeping the given question in mind, I would write to my supervisor as follows:

Subject: Assistance Required

Body:

Dear Sir,

By reviewing the whole document finally, which is to be presented to the client tomorrow, I found some mistakes in the results. I came to know that the results are incorrect and are surely needed to be corrected before the presentation.

I recommend you to delay the meeting for 3 hours by the scheduled time, as i need to check and correct the whole figures again and this would take time.

I am looking forwards for your advice.

Best Regards

6 0
3 years ago
Which agricultural system trapped many southern blacks in a cycle of debt and poverty despite their hard work?
Citrus2011 [14]

Answer:

sharecropping

Explanation:

Sharecropping is a system of tenancy agriculture . In it a landowner gives a portion of his land to  a labour for the purpose of raising crop . In return , he gets a share of crop raised by him for free.

After the civil war , former slaves were in search of jobs . Due to depression and absence of credit system ,they went into this deal of sharecropping with whites . They also borrowed heavily for getting seeds and fertilizer. Landlords charged high interest rate for that which led them to debt-trap. Landowner also put condition like selling the yield on  their condition  at pre-specified cheap price.

7 0
3 years ago
Other questions:
  • Two firms, such as a small local, family-owned Italian restaurant and Olive Garden, share few markets and have little similarity
    9·1 answer
  • A grocery store is trying to find a new vendor for carrots. Its three criteria are 1. Freshness, 2. Lot Size, and 3. Cost with f
    14·1 answer
  • An example of a firm applying the overall cost leadership generic strategy in a value-chain activity would be to automate the pr
    15·1 answer
  • If you take out money from a CD before it reaches maturity you must A) pay the bank a penalty, typically three months' interest.
    5·2 answers
  • Which of the following best defines procrastination?
    15·1 answer
  • Pepsico's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inve
    11·1 answer
  • The Weidmans want to save $20,000 in 4 years for a down payment on a house. If they make monthly deposits in an account paying 1
    15·1 answer
  • Mike takes a card out of his wallet at the grocery store and swipes it to pay for his groceries. What did Mike use?
    13·2 answers
  • Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distan
    10·1 answer
  • 01
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!