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Vlad [161]
3 years ago
15

"Gaston owns" equipment that cost $28,500 with accumulated depreciation of $5,700. Gaston asks $22,500 for the equipment but sel

ls the equipment for $20,500. Prepare journal entry to record the disposal of the equipment.
Business
2 answers:
sammy [17]3 years ago
7 0

Answer:

Dr. Cash                                      $20,500

Dr. Accumulated Depreciation $5,700

Dr. Loss on disposal                  $2.300

Cr. Cost                                       $28,500

Explanation:

The assets is sold for $20,500, which have cost of $28,500 and accumulated depreciation of $5,700. At the time of disposal $20,500 cash is received which is debited in the cash account. Accumulated Depreciation and cost is adjusted against it. The loss of $2,300 is incurred on the disposal of equipment.

UNO [17]3 years ago
3 0

Answer:

To record the disposal,

Debit Disposal/Other income account $22,800

Credit Fixed Asset account $22,800

Being entries to derecognize equipment disposed

Debit Cash account $20,500

Credit Disposal/Other Income account $20,500

Being entries to record the sales proceed on disposal of equipment

Explanation:

The carrying amount or net book value of an asset is the difference betwen the historical cost of the asset and the accumulated depreciation. When an asset is disposed, this carrying amount has to be derecognized and the proceed from the sale recognized. The difference between these two amounts is the gain/loss on disposal.

Net book value of asset

= $28,500 - $5,700

= $22,800

Sales proceed = $20,500

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3 years ago
Coca-Cola, a company that does business in almost every national market, can most accurately be classified as: a. a multinationa
erastovalidia [21]

Answer:

A. a multinational company

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3 years ago
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for Januar
Zigmanuir [339]

Answer:

Total Contribution Margin= $50,388

Explanation:

Giving the following information:

Sales (3,400 units) $ 88,400

Variable expenses 43,316

We need to calculate the selling price and unitary variable cost:

Selling price= 88,400/3,400= $26

Unitary variable cost= 43,316/3,400= $12.74

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3 0
3 years ago
You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on
jeyben [28]

Answer:

$63,852

Explanation:

The computation is shown below:

a) PV of payments is

= $23,500 × (1.07^30 - 1) ÷ (0.07 × 1.07^30)

= $2,91,612

b) The Loan PV of payments is $3,00,000

c) And, the Balloon payment required is

= (Borrowed amount - loan PV payments) × (1 + rate of interest)^number of years

= ($300,000 - $291,612) × 1.07^30

= $63,852

5 0
3 years ago
When making scrap or rework decisions, management should consider: (Check all that apply.)a. Revenue from selling defective unit
vlabodo [156]

Answer:

The correct answer is all of the above

Explanation:

Scrap or the rework costs are the costs which is incurred in order to repair the   items that are defective. And the decision to rework or scrap an item or product, ground on the benefits or advantage of the incremental costs.

If the reworked units generate or yield greater advantage or benefit rather than the selling them as scrap, then the decision to rework will be considered.

And if the decision of rework is taken, then the management should consider the incremental costs, revenue or profit from selling the defective units as scarp and the lost profit on selling and making the new units while the rework is performed.

3 0
3 years ago
Read 2 more answers
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