Answer:
The balance in the accumulated depreciation account at the end of the second year is $146,000.
Explanation:
Straight line method charges a <u>fixed depreciation charge</u> on the asset during its period of use.
Depreciation Expense (Straight line) = Cost - Residual Amount ÷ Estimated Useful life
= $778,000 - $48,000 ÷ 10
= $73,000
Therefore, for each year, a depreciation expense of $73,000 is charged to profit an loss.
Accumulated Depreciation Calculation :
Depreciation Expense : Year 1 $73,000
Depreciation Expense : Year 2 $73,000
Total Expense $146,000
The entry that Lane will make to record the receipt of cash will include a credit to the: a. Accounts Receivable.
<h3>What is Accounts Receivable?</h3>
Accounts Receivable can be defined as the amount a company is expected to receive from their clients or customers for the goods and service they rendered to their clients.
Based on the information given the appropriate journal entry to record the transactions is:
Debit Cash
Credit Account receivable
(To record the receipt of cash)
Inconclusion the entry that Lane will make to record the receipt of cash will include a credit to the: a. Accounts Receivable.
Learn more about account receivable here:brainly.com/question/24848903
The criteria for distinguishing between whether an expenditure is a capital item or a deductible expense is the useful life of the item.
If the purchase is going to be used and no longer have value at the end of the reporting period it is an expense for that period. If the item is a capital item it is going to have a longer useful life. In this case the item is depreciated over its useful life, assigning an expense amount to each accounting period that the item has value.
Answer:
If the accountants of an organization are to concentrate only on financial information then there will be no advantage. The both party (organization and the accountant) might suffer if this happened.
Moreover, it would be very costly to have two systems rather than one that captures and processes operational facts at the same time as it captures and reports financial facts.
The main disadvantage of this is that accountants would ignore much relevant information about the organization's activities. To the extent that such non-financial information (e.g., market share, customer satisfaction, measures of quality, etc.) is important to management, the value of the accounting function would decline.
Explanation:
