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KengaRu [80]
3 years ago
5

On January 1, Year 2 Boothe Company paid $12,000 cash to extend the useful life of a machine. Which general journal entries woul

d be required to recognize this expenditure?
Business
1 answer:
Akimi4 [234]3 years ago
5 0

Answer:

January 1, 2016:

Dr Accumulated Depreciation account 12,000

Cr Cash account 12,000

Explanation:

The accumulated depreciation account is a contra asset account used to record all the incurred depreciation expense since the asset (or assets) was being used or put into service.

Since the repairs extended the life cycle of the asset, then its accumulated depreciation decreases.

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Unlike perfectly competitive firms, in the long run monopolistically competitive firms face excess capacity or unused capacity. They produced at a higher cost which implies wastage of resources or under-utilization of resources.

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Who decides whether a suspect will be tried for an alleged crime
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District attorney decides if a suspect will be tried for a crime.
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A special repair to a machine will extend the life of the machine an additional four years beyond the original estimated life of
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Answer:

C. A capital expenditure.

Explanation:

This is an example of a capital expenditure as it makes significant improvements to the machines and extends the life considerably.

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Hope that helps.

6 0
3 years ago
On August 1, 2020, Ascent Corp. borrowed $80,000 cash on an 8-month note payable with a 7% annual rate that requires Ascent to p
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Answer and Explanation:

The computation is shown below:

Interest payable:

= Borrowed amount × rate of interest × given months ÷ total months

= $80,000 × 7% × 5 ÷ 12

= $2,333.33

And,

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= Borrowed amount × rate of interest × given months ÷ total months

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So here for recording the payment of interest the interest payable is debited for $2,333.33

The same is to be considered

6 0
3 years ago
Quick-service restaurants are likely to spend __________ percent of their income on advertising, more than is spent by the casua
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Answer:

The correct answer to the following question will be "4 to 5".  

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With your friends, log in Evaluate Chambers.

Therefore, 4 to 5 is the right answer.

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3 years ago
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