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wel
3 years ago
10

Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $18,000. The carp

et is estimated to have a 15-year useful life and no residual value.A. Prepare the journal entry necessary for recording the purchase of the new carpet.B. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek Company uses the straight-line method.
Business
1 answer:
larisa [96]3 years ago
7 0

Answer:

Entries are given below

Explanation:

Requirement A: Purchase of New Carpet on April 30

                                                    DEBIT         CREDIT

Carpet                                        $18,000

Cash                                                                18,000

Requirement B:  Depreciation Entry

Calculation

Annual Depreciation = 18000/15years = 1200

8 Monthths Depreciation = 1200 x 8/12 = 800

8 months = 1 May to Dec 31

                                                    DEBIT         CREDIT

Depreciation Expense               $800

Accumulated Depreciation                            $800

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1. If two short-term assets offer different interest rates, then investors will move their wealth towards the asset with the low
fenix001 [56]

Answer:

  1. False, investor will move their wealth towards the asset that offers the highest returns.
  2. False, a long term interest rate refers to the interest yielded by a security that has a maturity date longer than one year, while short term interest rate applies to the interest yielded by a security with a maturity date shorter than one year.
  3. True
  4. False, a long term interest rate refers to the interest yielded by a security that has a maturity date longer than one year.
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6 0
4 years ago
A company paid $505,000 to purchase equipment and $15,500 to have the equipment delivered to and installed in the company's prod
Firdavs [7]

Answer:

Using the units-of-production method, the amount of depreciation expense the company would report in the income statement prepared for the year-ended October 31, 2018 would be $105,711.

Explanation:

The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:

(Original Cost - Salvage value) / Estimated production capacity x Units/year

Depreciation expense (DE) is: ($520,500 - $5,500) / 28,500 operating hours x 11,700 hours = $211,421 yearly depreciation expense.

Depreciation from May 1 to October 31, 2018 (6 months): $211,421 / 2 = $105,711

5 0
3 years ago
What amount of capital could be raised by Shoprite
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The amount of capital that Shoprite can raise is dependent on various factors. It is to be noted however that "Shoprite Checkers will contribute R888 million, allowing the Shoprite Employee Trust to subscribe for 10% of the stocks, with Shoprite Checkers funding the remaining shares on a notional basis.

<h3>Who is Shoprite?</h3>

Shoprite Holdings Limited is an investment holding company established in South Africa.

The business is a fast-paced consumer products store.

Its primary activity is food retailing, which is supplemented by furniture, medicines, hotels, tickets, digital commerce, financial services, and cellular facilities.

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3 0
1 year ago
1. Sandra Martínez es una señora que después de tanto tiempo logró cumplir su sueño profesional. En el año 2014 se graduó como C
kaheart [24]

Answer:

B. Sector cuaternario

Explanation:

-Sector primario es el sector en el que se extraen los recursos naturales que se utilizan como materia prima para crear productos.

-Sector cuaternario es un sector que se enfoca en el conocimiento y en las actividades intelectuales, por ejemplo, la generación de información y la investigación y el desarrollo.

-Sector secundario es el sector en el que se transforman las materias primas para crear productos.

-Sector financiero es el sector que está formado por las instituciones que manejan los ahorros de las personas y ayudan con el movimiento del dinero.

De acuerdo a esto, la respuesta es que el sector económico en el que trabaja Sandra es el sector cuaternario porque fue contratada por la NASA que es la agencia del gobierno de Estados Unidos que se encarga del programa espacial y se enfoca en realizar investigación aeroespacial por lo cual trabaja en un sector enfocado en el conocimiento.

4 0
3 years ago
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 400 units
viva [34]

Answer:

WA      1,682

LIFO      910

FIFO  2,260

Explanation:

\left[\begin{array}{cccc}Date&Cost&Units&Subtotal\\$Jan 20th&8&400&3200\\$April 21th&10&200&2000\\$July 25th&13&280&3640\\$Sept 19th&15&90&1350\\$Total&10.51&970&10190\\\end{array}\right]

We add the units purchase and the subtotal to get the total units available for sale.

Ending inventory physical units: 970 - 810 = 160 units

<u>Then, we calculate for each method:</u>

Weighted average:

cost of goods / available units = 10,190 / 970 =  10.51

160 units x 10.51 = 1,681.6‬

LIFO:

Ending inventory will be the oldest units:

160 units x 8 = 960

FIFO:

Ending inventory will be the newest units as the units are sold as soon as they come in

90 x 15 =  1,350

70 x 13 =     910

Total       2,260

5 0
4 years ago
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