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Charra [1.4K]
3 years ago
11

A trucking company sold its fleet of trucks for $56,800. The trucks originally cost $1,496,000 and had Accumulated Depreciation

of $1,287,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks?
Business
2 answers:
MatroZZZ [7]3 years ago
5 0

Answer:

the trucking company recorded<em> a</em><em> </em><em>loss on disposal of $152,200 </em>when it sold the fleet of trucks.

Explanation:

Open the Truck Disposal T-Account as Follows:

Debits :

Cost                                                      $1,496,000

Totals                                                    $1,496,000

Credits:

Cash Receipt                                           $56,800

Accumulated Depreciation                $1,287,000

Profit and Loss (Balancing figure)         $152,200

Totals                                                   $1,496,000

<em>Therefore, there was a loss on disposal of $152,200</em>

Marysya12 [62]3 years ago
4 0

Answer:

loss on disposal =$152,200

Explanation:

The gains on disposal is the the difference between the net sales proceeds on disposal and the carrying value of the assets as the date of disposal.

The carrying value = Cost  of the assets - accumulated depreciation to date

Carrying value = $1,496,000- $1,287,00

                       =209,000

Loss on disposal = $56,800 - $ 209,000 = -152,200

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Answer and Explanation:

The Preparation of statement of stockholders’ equity is shown below:-

                  <u> Statement of Stockholder's Equity</u>

<u>                          Power Drive Corporation</u>

<u>                For the year ended December 31, 2018</u>

<u>Particulars      Common   Additional    Retained   Treasury   Total</u>

<u>                           stock        paid in          Earning       Stock    Stockholder</u>

<u>                                            capital                                                equity</u>

Jan 1 Balance  100,000  $4,800,000 $2,300,000   0       $7,200,000

Issued common

stock                58,000    $3,132,000      0                 0       $3,190,000

                (58,000 × $1) (58,000 × $54)

Purchase treasury

stock                                                                    -$307,400 -$307,400

                                                                               (5,300 × $58)

Dividends                                              -$251,955                -$251,955

                                        ((100,000 + 58,000 - 5,300) × $1.65)

Sale of Treasury

stock                                  $13,250                       $153,700   $166,950

                                     (2,650 × $5)                   (2,650 × $58)

Net Income                                              $630,000                $630,000

Balance,

December

31            158,000    $7,945,250   $2,678,045  -$153,700 $10,627,595

Total Stockholder's equity  is

= Common stock + Additional paid in capital + Retained earnings - Treasury stock

= 158,000  + $7,945,250  + $2,678,045  - $153,700

= $10,627,595

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Answer:

The given condition is an example of:

A. Menu costs

Explanation:

In the given question mentioning data is that

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On his very payday he went outside immediately and bought as many goods as he could for himself as he was going to get his pay today and was needing those items.

So, he thought of buying all the items he is needing as for the next two weeks  in order of prevention of the money in his wallet from losing value due to high inflation rates.

And at last what he couldn't spend on buying for all that amount he converted that amount into most stable foreign currency for being used as a steep fee.

So all this were an example of :

A. Menu costs

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Ryan:
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b.
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Ryan <span>$7,000</span>
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Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then
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Answer:

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Paid In Capital - No effect

Retained Earnings - No Effect

Net Income - No Effect

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Assets - Increase by $98,000

Cash increased because of sale of stock = 2,000 * 49 = $98,000

Liabilities - No effect

Stockholders' equity - Increase by $90,000

= 2,000 * 45 = $90,000

Cost method means that when debiting from Treasury account, use original cost.

Paid In Capital - Increase by $8,000

If stock is sold for amount different from what it was bought, it goes into this account. If it is larger than it was bought for then this account increases and vice versa.

Retained Earnings - No Effect

Net Income - No Effect

<u>Transaction 3</u>

Assets - Increase by $20,000

Cash from sale of stock = 500 * 40 = $20,000

Liabilities - No effect

Stockholders' equity - Increase by $22,500

= 500 * 45 = $22,500

Paid In Capital - Decrease by $2,500

If stock is sold for amount different from what it was bought, it goes into this account. If it is smaller than it was bought for then this account decreases and vice versa.

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