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Daniel [21]
3 years ago
15

ABC Catering​, purchased equipment for $ 12 comma 000. ABC recorded total depreciation of $ 9 comma 000 on the equipment. Assume

that ABC exchanged the old equipment for new​ equipment, paying $ 3 comma 200 cash. The fair market value of the new equipment is $ 5 comma 800. Journalize ABC's exchange of equipment. Assume this exchange has commercial substance
Business
1 answer:
NNADVOKAT [17]3 years ago
5 0

Answer:

New Equipment $5,800 (debit)

Old Equipment - Accumulated depreciation $9,000 (credit)

Old Equipment at Cost $12,000 (credit)

Gain on echange of Equipment $2,800 (credit)

Explanation:

Accoring to IAS 16 :

If a transaction has a <em>commercial substance</em>,

Acquired Equipment is measured at fair value of asset given up. ( if fair values of acquired and given up asset can be determined reliably)

If fair value of Asset Acquired is more evidentn then Asset acquired is measured at fair value of Asset Acquired.

<u>JOURNAL</u>

New Equipment $5,800 (debit)

Old Equipment - Accumulated depreciation $9,000 (credit)

Old Equipment at Cost $12,000 (credit)

Gain on echange of Equipment $2,800 (credit)

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Tiger Company completed the following transactions.
lbvjy [14]

Answer:

Tiger Company

1. Accounts, Amounts, and Effects on the Accounting Equation:

Date        Assets = Liabilities + Stockholders' Equity

Jan. 3      Inventory $31,000 increased = Accounts Payable $31,000 increased + Stockholders' Equity

Jan. 27    Cash $31,000 decreased = Accounts Payable $31,000 decreased + Stockholders' Equity.

Apr. 1      Cash $87,000 increased = Notes Payable $87,000 increased + Stockholders' Equity

June 13   Inventory $9,400 increased = Accounts Payable $9,400 increased + Stockholders' Equity

July 25   Cash $9,400 decreased = Accounts Payable $9,400 decreased + Stockholders' Equity.

Aug. 1     Cash $9,400 increased = Liability + Rent Revenue (Retained Earnings) $9,400 increased.

Dec. 31   Assets = Wages Payable $19,000 increased + Wages Expense (Retained Earnings) $19,000 decreased

Dec. 31   Assets = Interest Payable $1,305 increased + Interest Expense (Retained Earnings) $3,915 decreased

Dec. 31  Assets = Unearned Rent Revenue $3,525 increased + Rent Revenue (Retained Earnings) $3,525 decreased.

2. Indication of whether the debt-to-assets ratio is increased or decreased:

Date Effect Numerator Denominator

Jan. 3 Increased, Debt is increased, Assets are increased

Jan. 27 Decreased, Debt is decreased, and Assets are decreased

Apr. 1  Increased, Debt is increased, Assets are increased

June 13 Increased, Debt is increased, Assets are increased

July 25 Decreased, Debt is decreased, and Assets are decreased

Aug. 1 Increased, Debt is increased, Assets are increased

Dec. 31 Increased, Debt is increased, Assets are not affected.

Dec. 31 Increased, Debt is increased, Assets are not affected.

Dec. 31 Increased, Debt is increased, Assets are not affected.

Explanation:

The accounting equation indicates the balance that exists between the basic elements of accounting.  It states that Assets = Liabilities + Stockholders' Equity.  For every transaction, this equation holds true, because by the double entry system of bookkeeping, two or more accounts are always involved in every business transaction.

7 0
3 years ago
You manage a pension fund that promises to pay out $10 million to its contributors in five years. You buy $7472582 worth of par-
julia-pushkina [17]

Answer :

Shortfall of money = $74,598

Explanation :

As per the data given in the question,

Par value of bond = $7,472,582

To determine the future value of annual coupon payments received, we will use FV of annuity's formula

FV of Annuity = P [(1 + r)^n- 1 ÷ r]

where,

P = Periodic payment

r = interest rate

n = Time period

here P = 6% of $7,472,582 = $448,354.92

r = 4.50%

n = 5 years

FV of Annuity = $448,354.92 × [(1 + 4.50%)^5 - 1) ÷ 4.50%]

=$2,452,820

Shortfall at the end of 5 years is

= $10,000,000 - $7,472,582 - $2,452,820

= $74,598

6 0
3 years ago
7. During January 2005, an Italian invested in the Italian stock market and earned a return of 1.47%. During the same month, an
vovangra [49]

Answer:

Escreva a expressão algébrica correspondente a cada sentença abaixo descrita.

a) O quadrado de um número real x.

b) O cubo de um número real y.

c) O triplo de um número adicionado ao dobro de um número k.

d) A terça parte de um número real diminuído 7.

Explanation:

Escreva a expressão algébrica correspondente a cada sentença abaixo descrita.

a) O quadrado de um número real x.

b) O cubo de um número real y.

c) O triplo de um número adicionado ao dobro de um número k.

d) A terça parte de um número real diminuído 7.

5 0
3 years ago
The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder
Kaylis [27]

Answer:

Explanation:

The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A higher discount rate decreases banks' incentives to borrow reserves from the Federal Reserve, thereby reducing the quantity of reserves in the banking system and causing the money supply to fall

The federal funds rate is the interest rate that banks charge one another for short term loans. When the Federal Reserve uses open-market operations to buy government bonds, the quantity of reserves in the banking system increases, banks' demand for borrowed reserves declines , and the federal funds rate decreases.

6 0
3 years ago
Why are russian and eastern europe interested to international managers? identify and describe reasons for such interest as well
algol13

Russian and Japanese Europe are interested in international managers: global control refers to the control of commercial enterprise operations in an employer, running in more than one country. global control has a whole lot of blessings.

International managers continually should arrange their commercial enterprise to evolve to neighborhood necessities of all international locations. firstly, they need to create a command hierarchy that involves human beings operating in multiple countries. Then, they must adhere to the local laws and guidelines of the nations they operate in.

It takes a wide range of know-how to be an international manager. They ought to have a complete historical past and aggressive intelligence in marketing, income, finance, and human sources. high-quality networking and pass-cultural communique abilities also are important.

International managers make a contribution with their cultural skills and knowledge of international economics, trade, governments, contracts, markets, and finance to ensure an organization's front into worldwide markets is aligned with its desires and goals.

Learn more about international managers here: brainly.com/question/24553900

#SPJ4

6 0
2 years ago
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