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Lina20 [59]
3 years ago
15

During the current year ending on December 31, BSP Company completed the following transactions:a.On January 1, purchased a pate

nt for $28,000 cash (estimated useful life, seven years).b.On January 1, purchased the assets (not detailed) of another business for $164,000 cash, including $10,000 for goodwill. The company assumed no liabilities. Goodwill has an indefinite life.c.On December 31, constructed a storage shed on land leased from D. Heald. The cost was $15,600. The company uses straight-line depreciation. The lease will expire in three years. (Amounts spent to enhance leased property are capitalized as intangible assets called Leasehold Improvements.)d.Total expenditures for ordinary repairs and maintenance were $5,500 during the current year.e.On December 31 of the current year, sold Machine A for $6,000 cash. Original cost was $25,000; accumulated depreciation to December 31 of the prior year was $16,000 (on a straight-line basis with a $5,000 residual value and five-year useful life).f.On December 31 of the current year, paid $5,000 for a complete reconditioning of Machine B acquired on January 1 of the prior year. Original cost, $31,000; accumulated depreciation to December 31 of the prior year was $1,600 (on a straight-line basis with a $7,000 residual value and 15-year useful life).Required:1.For each of these transactions, indicate the accounts, amounts, and effects (+ for increase and − for decrease) on the accounting equation. Use the following structure
Business
1 answer:
Mariana [72]3 years ago
5 0

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

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Why is cooperative skill important in good trade? give the reasons..​
klio [65]

Answer:

Team cooperation encourages employees to work together for the benefit of the organization. It reduces the desire of employees to complete against each other,which often never good for the business,and instead focus on working together to achieve a common goal.

3 0
2 years ago
A(n)___standard is the quantity of material required if the process is 100fficient without any loss or waste.
vodomira [7]

A <u>practical</u> standard is the quantity of material required if the process is 100fficient without any loss or waste.

Sensible requirements are the requirements that are set for everyday working conditions. They account for reasonable and unavoidable wastages which are part and parcel of the normal manufacturing manner. Practical standards remember the effect that factors along with machine preservation and maintenance time, everyday employee breaks, etc.

Perfect requirements aren't practical standards, apart from in the very quick run, and are consequently of little use for control wherein their use will be very demotivating for employees.  Achievable standards constitute what will be done with a reasonable degree of effort below ordinary working situations.

Ideal preferred costs, those preferred expenses constitute the best overall performance. They assume 100% efficiency, that there are no losses or idle time. They constitute the minimal charges that are feasible below the maximum efficient running situations.

Learn more about the practical standard here brainly.com/question/14143211

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4 0
2 years ago
On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $22 million cash to fund a geological survey. Th
IgorLugansk [536]

Answer:

<u>when signing the note:</u>

cash    22,000,000

    note payable       22,000,000

<u>accrued interest at december 31th, 2018</u>

interest expense 330,000 debit

     interest payable           330,000 credit

payment of the note:

<u>payment of the note</u>

note payable   22,000,000

interest payable    330,000

interest expense  1,185,000

                  cash                     23,485,000

Explanation:

adjusting entry:

principal x rate x time

22,000,000

rate 9% / 12 = 0.0075

months 2

We must express rate and time in the same metric, in this case, months

22,000,000 x 0.75 x 2 = 330,000 accrued interest

payment of the note:

22,000,000 x 0.75 x 9 = 1,485,000

already accrued                 330,000

interest expense               1,185,000

3 0
3 years ago
A person borrows $370 from a payday loan company, paying $26 interest for two weeks. This would result in an annual interest rat
xeze [42]

Answer:

Rate= 168.65%

Explanation:

When loans are collected there is interest that is paid on the principal collected. The interest is usually expressed as a percentage per year.

The following formula is used to calculate interest rate

Interest = principal* rate* time

We are asked to calculate annual percentage

Rate = interest/(principal * time)

Interest bis paid every two weeks. That is twice a month, and there are 12 months in a years. That is 2*12= 24 times.

Total interest per year= 24* 26= $624

Using the formula

Rate= 624/(370*1)

Rate = 1.6865

Rate= 168.65%

8 0
3 years ago
Marigold Corp. has old inventory on hand that cost $12000. Its scrap value is $14000. The inventory could be sold for $30000 if
vfiekz [6]

Answer: Manufacture Inventory further and sell for $30,000

Explanation:

To make this decision we would have to calculate the benefit that could be acquired from manufacturing further.

Amount net benefit if manufactured further and sold for $30,000

= 30,000 - 12,000

= 18,000

There would be a net benefit of $18,000 of manufactured further.

If Marigold Corp. sold at the scrap value there would get $14,000.

We can see that Manufacturing further and selling for $30,000 is the better option as it brings more money. It should therefore be chosen.

4 0
3 years ago
Read 2 more answers
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