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Margarita [4]
4 years ago
14

Cheyenne Corporation owns equipment that cost $49,200 when purchased on April 1, 2013. Depreciation has been recorded at a rate

of $8,200 per year, resulting in a balance in accumulated depreciation of $38,950 at December 31, 2017. The equipment is sold on July 1, 2018, for $9,840. Prepare journal entries to
(a) update depreciation for 2018 and
(b) record the sale
Business
1 answer:
jeka944 years ago
8 0

Answer:

Please see the answers below:

Explanation:

(a)

<em>Dated: July 1, 2018 </em>

Debit: Depreciation Expense         $4,100

Credit: Accumulated Depreciation           $4,100

To record Depreciation Expense for 6 months as the depreciation expense is $8,200 per year.

(b)

<em>Dated: July 1, 2018 </em>

Debit: Cash                                       $9,840

Debit: Accumulated Depreciation   $43050

Credit: Gain on Sale                                         $3690

Credit: Equipment                                         $49,200

To record the sale of asset with Gain.

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umka2103 [35]

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7 0
2 years ago
Which of the following would be included in a properly prepared comprehensive annual financial report (CAFR), but not in the min
Elan Coil [88]

Answer: D. Combining and individual fund financial statements.

Explanation: Annual financial Report, the most common of this set of reports issued are general purpose financial statements that include income statement, balance sheet, retain earnings and statement of cash flow. It is a financial statement of 12 consecutive months in a year.

There are items that will be include such as Combining and individual fund financial statements.

7 0
3 years ago
You are bullish on Telecom stock. The current market price is $250 per share, and you have $20,000 of your own to invest. You bo
sergiy2304 [10]

Answer:

The rate of return on the investment if the price fall by 7% next year is -22% which is shown below.

The price of Telecom would have to fall by $71.43($250-$178.57), before a margin call could be placed.

Lastly,if the price fall immediately,the margin price would $178.57 as shown below

Explanation:

Total shares bought=$40000/$250=160 shares

Interest on amount borrowed=8%*$20000=$1600

When the price falls by 7% the new price =$250(1-0.07)=$232.50

Hence rate of return=(New price*number of shares-Interest-total investment)/initial investor's funds

=($232.50*160-$40000-$1600)/$20000=-22%

Initial margin=investor's money/total investment=$20000/$40000=50%

maintenance  margin=30%

Margin call price=Current price x (1- initial margin)/ (1- maintenance margin)

                           =$250*(1-0.5)/(1-0.3)

                           =$178.57

8 0
3 years ago
Technology combined with rapid international communication of news, entertainment, and lifestyles is dramatically increasing the
harina [27]

Answer:

True

Explanation:

The great advances in the mass media and technology have marked consumer habits in our society. One of the most influential today is television, because it can change the way people act or think and, in this way, create a different reality through advertising, most experience the impact of advertising by the large number of hours spent surfing the net.

6 0
3 years ago
On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c
gayaneshka [121]

Answer:

$21,800

Explanation:

The computation of 4-year revenue is as shown below:-

Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2

= $500,000 × 8% × 1 ÷ 2

= $20,000

Interest Revenue = Bond Income + Amount of Discount Amortized

= $20,000 + $1,800

= $21,800

Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.

6 0
3 years ago
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