Answer:
A. Patent = 28000 / 7 years = 4000
B. Goodwill = Indefinite life, so amortization is zero
C. Leasehold improvements = Construction is done on 31 December hence no depreciation for the current year
D. Ordinary repairs and maintenance = Revenue expenditure, so no depreciation
E. Machine A = Already recorded depreciation So no additional depredation as it is sold
F. Machine B (31000 - 7000) / 15 year = 1600
Answer:
bank statement 56,300
Checks outstanding (25,390)
Deposit in transit not recorded by bank<u> 13,325 </u>
Adjusted bank statement 44,235
Cash account 42,920
Bank debit memo for service charges (35)
check register error: <u> 1,350 </u>
Adjusted cash account 44,235
Explanation:
The procedure is to adjust for the unknow information and mistake of each party.
The bank is unaware of the check outstanding and deposit in transit
The company thanks to the banbk statement gets information about a mistake in his check register as it was posted for 1,500 when it should be 150.
Answer:
$2,010
Explanation:
The future value of the savings account in 6 years can be computed using the below future value formula:
FV=PV*(1+r)^n
FV=unknown future amount
PV=current worth of the savings account=$1,200
r=annual interest rate=5%
n=number of years envisaged=6
FV=$1,500*(1+5%)^6
FV=$1,500*(1.05)^6
FV=$1,500*1.3400956
FV=$2,010
Insurance can definitely help you in case of an emergency.
Hope this helps!
