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Grace [21]
3 years ago
6

For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabiliti

es, and net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (—)_ Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category.
a. Recorded $200 of depreciation expense.
b. Sold land that had originally cost $9,000 for $13,000 in cash.
c. Acquired a new machine under a financing lease. The present value of future lease payments, discounted at 11%, was $11,000.
d. Recorded the first annual payment of $2,800 for the leased machine (in part c).
d. Recorded a $5,900 payment for the cost of developing and registering a trademark.
e. Recognized periodic amortization for the trademark (in part e) using a 34-year useful life.
f. Sold used production equipment for $16,000 in cash. The equipment originally cost $45,000, and the accumulated depreciation account has an unadjusted balance of $23,700. It was determined that a $1,800 year-to-date depreciation entry must be recorded before the sale transaction can be recorded.

Required:
Record the adjustment and the sale.
Business
1 answer:
Alja [10]3 years ago
7 0

Answer:

a. Recorded $200 of depreciation expense.

depreciation expense 200 debit (-net income)

 accumulated depreciation  200 credit (-assets)

b. Sold land that had originally cost $9,000 for $13,000 in cash.

cash 13,000 debit +assets

  land             9,000 credit -assets

 gain on sale 4,000 credit +net income

c. Acquired a new machine under a financing lease. The present value of future lease payments, discounted at 11%, was $11,000.

machinery  11,000 debit +assets

 lease liability 11,000 credit +liability

d. Recorded the first annual payment of $2,800 for the leased machine (in part c).

lease liability 2,800 debit -liability

cash                     2,800 credit -assets

d. Recorded a $5,900 payment for the cost of developing and registering a trademark.

trademark 5,900 debit +assets

cash  5,900 credit -assets

e. Recognized periodic amortization for the trademark (in part e) using a 34-year useful life.

 amortization 173 debit -net income

trademark 173 credit -asset

f. Sold used production equipment for $16,000 in cash. The equipment originally cost $45,000, and the accumulated depreciation account has an unadjusted balance of $23,700. It was determined that a $1,800 year-to-date depreciation entry must be recorded before the sale transaction can be recorded.

book value  45,000 - 23,700 - 1,800 = 19,500

sale price = 16,000  loss of 3,500

cash                             16,000  debit +assets

acc depreciation        23,700 debit +asset

depreciation expense  1,800 debit -net income

loss on disposal           3,500 debit -net income

equipment                                   45,000 credit -assets

Explanation:

We follow the accounting principles:

debit = credit

asset + expense = liabilities + equity + expenses

DEBIT //  CREDIT           DEBIT //  CREDIT

----------------------          ---------------------------------

+++++   //  --------             ------- ///    +++++++

Left side increase fro mdebit and decrease from credit

right side increase through credit decrease with debit.

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Tolton, Inc. is just shy of hitting its operating income target. The manager, K.T. Tolton, decides to purchase inferior material
mario62 [17]

Answer:

Net income increase - $4,890

Explanation:

The computation of the effect on net income is shown below:

= Number of pounds of inferior product × (standard price for the materials - inferior product price per pound)

= 3,000 pounds × ($13 - $11.37)

= 3,000 pounds × $1.63

= $4,890 increase

For determining the effect we took the difference of the prices and then multiply it with the number of pounds of the inferior product

6 0
3 years ago
_________ is the elapsed time from receipt of a customer order to when the completed goods are shipped to the customer.
Leno4ka [110]

The period of time between receiving a client order and shipping the finished items to the customer is referred to as the delivery cycle time.

When it comes to measuring internal business performance, delivery cycle time is regarded as a very crucial statistic. It is defined as the period of time between the moment an order is received and the time it is actually sent.

This usually plays a significant role for both organizations and customers because prompt order processing is a skill that almost all firms and customers tend to value.

In a similar vein, it can be seen that quicker delivery cycles can also serve as a possible competitive advantage for the business and, in most situations, are essential to their existence.

To know more about delivery cycle time.

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4 0
2 years ago
Information technology has been used to improve both internaland external access and sharing of information. Three main kinds of
Mashcka [7]

Answer:

1. Executive Information System (EIS).

2. Corporate Portal.

3. Intranet.

Explanation:

Information technology (IT) can be defined as a set of components or computer systems, which is used to collect, store, and process data, as well as dissemination of information, knowledge, and distribution of digital products.

An information technology (IT) interacts with its environment by receiving data in its raw forms and information in a usable format.

Information technology (IT) has significantly helped to improve both internal and external access and sharing of information between two or more business firms and individuals. Basically, there are three (3) main kinds of information technology (IT) which allow informations to be accessed and shared internally among employees; executive information systems (EIS), intranets, and portals.

1. Executive Information System (EIS): it assist managers working in an organization to monitor and analyze organizational performance. An Executive information system is also referred to as an Executive support system and it can be defined as a management support system that enhances and supports all of the senior executive information and decision-making process.

2. Corporate Portal: it's a hybrid system that uses a web address (uniform resource locator-URL) to give employees access to customized information and specialized transactions with respect to an organization.

3. Intranet: it's an internal company network which is private and provides employees with easy access to information.

8 0
2 years ago
Product V72 sells for $20 per unit as is, but if enhanced it can be sold for $25 per unit. The enhancement process will cost $52
Furkat [3]

Answer:

It will incur an Opportunity cost of $8,000.

Explanation:

It will incur the opportunity cost of $8000 because the additional unit produces by the company then the additional revenue that is generated will be equal to the amount (25 - 20) x 12,000 = 60,000. Since the additional cost, that incurs for the production of 12000 units is 52000. Therefore the profit earned is $8000.

So if the company does not produce it then it will lose the profit of $8000.

3 0
2 years ago
you texpect to receive a payout from a trust fund in 3 years. The payout will be for $11000. You plan to invest the money at an
MrMuchimi

Answer:

11.68 years

Explanation:

For computing the number of years first we have to applied the NPER formula i.e to be shown in the attachment below:

Given that,  

Present value = $11,000

Future value = $19,000

Rate of interest = 6.5%

PMT = $0

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the number of years is 8.68

Now after 3 years, it would be

= 8.68 + 3

= 11.68 years

3 0
3 years ago
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