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Misha Larkins [42]
3 years ago
14

Fancy Farms purchased equipment on January 1 at a cash cost of $30,000. The estimated life is 10 years and the estimated residua

l value is $5,000. Assuming the company uses the double-declining balance method of depreciation, the depreciation expense for the second year will be: ______.
Business
1 answer:
DanielleElmas [232]3 years ago
3 0

Answer:

4,800

Explanation:

\left[\begin{array}{ccccc}Year&Beginning&Dep-Expense&Acc. \: Dep&Ending\\0&-&-&-&30,000\\1&30,000&6,000&6,000&24,000\\2&24,000&4,800&10,800&19,200\\3&19,200&3,840&14,640&15,360\\\end{array}\right]

The double declining will be the straight-line rate times two.

straight-line = 1/10

double declining = (1/10) x 2 = 2/10 = 1/5 = 20%

The first year will be:

30,000 x 20% = 6,000 depreciation expense

then we calculatethe book value for the second year

30,000 - 6,000 = 24,000

now we clacualte the depreciation expense for the 2nd year

24,000 x 20% = 4,800

This process is repeat every year until the book value equalt the salvage value at the end of the 10th year.

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Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year
anyanavicka [17]

Answer:

$81,000

Explanation:

Segment margin is derived by deducting all expenses that are directly traceable to the segment and it does not include corporate common expenses.

Particulars                         Amount

Contribution                       $132,000  [33,000*(8-4)]

Less: Direct fixed cost      <u>($51,000)</u>

Segment Margin               <u>$81,000</u>

So, Carter's segment margin for the West Division is $81,000.

8 0
3 years ago
What is the value today of a money machine that will pay $4,010.00 per year for 13.00 years?
Maurinko [17]

Answer:

The present value of the machine is $35499

Explanation:

The annual amount or annuity amount = $4010 per year.

Total number of years = 13 years

Here, the interest rate is not given so we just assume the interest rate = 6% per annum.

Since we have a total number of years and annual payment that occurs for 13 years. We are required to find the present value of the machine. So use the formula to find the present value of the annuity.

The present value of machine = (Annuity amount x (1 – (1+r)^-n) ) / r

The present value of machine = (4010(1 – (1+6%)^-13) ) / 6%

The present value of machine = $35499

3 0
3 years ago
The following transactions occur for Cardinal Music Academy during the month of October:
tamaranim1 [39]

Answer:

The entries to record the transactions are given below.

a. Provide music lessons to students for $7,000 cash.

Debit Cash Asset                          $ 7000

CreditService Revenue income   $ 7000

b. Purchase prepaid insurance to protect musical equipment over the next year for $3,000 cash.

Debit Prepaid Insurance equipment Asset $ 3000

Credit Cash Asset                                          $ 3000

c. Purchase musical equipment for $10,000 cash.

Debit Equipment Asset    $ 10,000

Credit Cash Asset            $ 10,000

d. Obtain a loan from a bank by signing a note for $10,000

Debit Cash Asset            $ 10,000

Credit Notes payable     $ 10,000

7 0
3 years ago
The following is the adjusted year-end trial balance at December 31, 2018, of Wilson Trucking Company. Account Title Debit Credi
mariarad [96]

Answer:

Income Statment:

Trucking fees earned                 130,000

Depreciation expense—Trucks (23,500)

Salaries expense                         (61,000)

Office supplies expense               (8,000)

Repairs expense—Trucks        <u>  (12,000)  </u>

                  Net Income               25,500

Retained Earnings

Beginning       155,000

Net Income      25,500

Dividends     <u>  (20,000)  </u>

Ending            160,500

Balance Sheet:

Cash                             8,000    Accounts payable         12,000

Accounts receivable  17,500     Interest payable             4,000

Office supplies          <u>   3,000 </u>    Total current liabilities 16,000

Total Current Assets: 28,500    Long-term                     53,000

Trucks (net)               136,000   Total liabilities                69,000

Land                          <u> 85,000</u>    Common Stock             20,000

Total non-current     221,000    Retained Earnings      160,500

                                                   Total Equity                 180,500

Total Assets             249,500    Liabilities + Equity    249,500

Explanation:

For the income statement we list the revenue and then, we subtract all the expenses account.

Retained Earnings will be beginning + income - dividends. This value will go into the balance sheet.

For the balance sheet, we display assets into both categories:

current: who are going to be converted into cash within a year.

and non-current like the truck and the land which are going to be in the company's book for more than a year before converting into cash.

Liabilities and equity will be in the other side and their sum should match the total assets.

6 0
3 years ago
What is a plan to help you reach your financial goals called?
Vikentia [17]

Answer:     Primemerica

Explanation: Its a financial company where you get to build a business within the company. You will be helping families financially. You going to help people get out of debt, make sure they have the right amount of life insurance coverage, and show them how to reach their goals (such as saving for retirement, college fund, vacation, buying a house, or whatever their goals are). Most people don't have a plan on how to reach their goals. Without a plan, their goals will never come true because there are too many distractions in life.

Besides helping families, you can also recruit people into your business and every recruit has the same opportunity as you do. Why recruit? For one, there's only 24 hours in a day and you are just 1 person. How much work can you do by yourself? If you recruit people, more work gets done. Second, you get to make new friends by recruiting. Third, you override your recruits. That means every time your recruit helps a family, the company pays you an override. An override is not a split in commissions. Its profits earn from a sale. That's how every business work. For example, if you worked at McDonalds, every time you sell a burger, the company earns a profit. Do you think the owner of a McDonalds restaurant is there? Of course not. He or she is probably enjoying life.

Override leads to freedom. The top earners in this company earning millions of dollars per year really don't do any work anymore. They live off overrides and residual income (which is work they done in the past continues to pay them forever). Some of these million dollar earners do training and teach others valuable lessons on how to build a business. If you look at the background of these million dollar earners, most of them came from a poverty or middle class families. Are these people any better than you or me? Of course not. They just worked harder than anyone else. Will you get to be a million dollar earner? Only if you work as hard as they did and do it long enough. It all depends on how badly you want it and how much do you believe in yourself.

4 0
3 years ago
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