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hoa [83]
3 years ago
6

Equipment costing $276000 was destroyed when it caught on fire. At the date of the fire, the accumulated depreciation on the equ

ipment was $103000. An insurance check for $325000 was received based on the replacement cost of the equipment. The entry to record the insurance proceeds and the disposition of the equipment will include a
a. credit to the Equipment account of $160000.
b. credit to the Accumulated Depreciation accou eunt for $100000.
c. gain on disposal of $140000.
d. gain on disposal of $40000.
Business
1 answer:
Oksanka [162]3 years ago
4 0

Answer:

a). The credit to the equipment account=$173,000

b). Credit to the accumulated depreciation account for $103,000

c). gain on disposal=$152,000

Explanation:

a). The formula for the book value of the equipment when it caught fire can be expressed as;

Book value=Acquisition cost-accumulated depreciation

where;

acquisition cost=$276,000

accumulated depreciation=$103,000

replacing;

Book value=(276,000-103,000)=$173,000

The credit to the equipment account=$173,000

b).  Credit to the accumulated depreciation account for $103,000

c). The formula for calculating the gain from disposal is;

gain on disposal=insurance check-book value

where;

insurance check=$325,000

book value=173,000

replacing;

gain on disposal=325,000-173,000=$152,000

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Answer:

d.how frequently during the year the accounts receivable are converted to cash

Explanation:

The formula to compute the account receivable turnover is shown below:

Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable  

where,  

The Average accounts receivable would be  

= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2

This ratio derives that how much frequently is there for converting the account receivable to cash

hence, the correct option is d.

8 0
3 years ago
Evert Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; th
Allisa [31]

Answer:

The calculation is shown below:-

Explanation:

a. Unit-level activities

Total direct labor hours = 27,000

Total inspection cost = $540,000

Per direct labor hours cost = $540,000 ÷ 27,000

= $20

Allocations

High caliber = 6,000 × $20

= $120,000

Low caliber = 21,000 × $20

= $420,000

b. Batch-level activities

Total number of batches = 40

Total inspection cost = $540,000

Cost per batch = $540,000 ÷ 40

= $13,500

Allocations

High caliber = $13,500 × 20

= $270,000

Low caliber = $13,500 × 20

= $270,000

c. Product-level activities

Total number of inspections = 5

Total inspection cost = $540,000

Cost per inspections = $540,000 ÷ 5

= $108,000

Allocation

High caliber = $108,000 × 3

= $324,000

Low Caliber = $108,000 × 2

= $216,000

d. Facility-level activities

Total number of square feet = 100,000

Total inspection cost = $540,000

Cost per square feet = $540,000 ÷ 100,000

= $5.4

Allocation

High caliber = 30,000 × $5.4

= $162,000

Low caliber = 70,000 × $5.4

= $378,000

4 0
3 years ago
The Snow Hut has analyzed the carrying and shortage costs associated with its cash holdings and determined that the firm should
LekaFEV [45]
I believe the answer E
6 0
3 years ago
In much of the United States and Canada, logging takes place in both privately owned and government-owned forests. a. Privately
never [62]

Answer:

A.) private, nonrival, and excludable

B.) Common resources

C. Faster

Explanation:

A. A privately owned forest is a private good. This goods ownership is restricted to those that bought it. No one else shares in the use of this good. Therefore the answer here is that it is private, non rival and also excludable.

B. If anyone is able to enter a government forest legally it means it is a common good. Common goods are goods with rivalry but are non excludable.

C. The rate of logging in a government owned forest would be faster since there is little cost to cutting the trees, especially when there is no regulation.

4 0
3 years ago
The Acme Aircraft Seat Company produces aircraft seats and is able to assemble 2 seats in 30 minutes using four workers. The sin
Varvara68 [4.7K]

Answer:

The single-factor productivity of the firm is 1 seat per labor hour.

Explanation:

The Single-factor productivity means the output when a unit of input is used. It is used to identify how many resources are used to produce a unit output.

The Acme Aircraft produce 1 aircraft seat per labor hour.

The single-factor productivity is calculated by formula :

Output/Input

No.  of  seats  produced / ( No. of workers * Hours worked  )                    

   

Single Factor Productivity =  2 Seats / 4 workers * 0.5 (30/60) hours

5 0
3 years ago
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