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Kipish [7]
2 years ago
7

Cushenberry Corporation had the following transactions. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock at par f

or $20,000. 3. Recorded depreciation on buildings for $17,000. 4. Paid salaries of $9,000. 5. Issued 1,000 shares of $1 par value common stock for equipment worth $8,000. 6. Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.
Required:
For each transaction above, (a) prepare the journal entry, and (b) indicate how it would affect the statement of cash flows using the indirect method.
Business
1 answer:
Eduardwww [97]2 years ago
3 0

Answer:

Entries are given

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

Sold land (cost $12,000) for $15,000.

Dr Cash                  15,000

Cr Land                                          12,000

Cr Gain on Sale                             3,000

Increase investing cash flows by 15,000. and 3000 gain will be deducted from operating activities

Issued common stock

Dr Cash                                            20,000

Cr Common Stock                                        20,000

Increase financing cash flows by 20,000

Recorded depreciation on buildings for $17,000.

Dr Depreciation Expense             17,000

Cr Accumulated Depreciation                      17,000

This will not affect cash flow.

Paid salaries of $9,000.

Dr Salaries Expense                     9,000

Cr Cash                                                          9,000

Decrease operating activities cash flow by $9,000.

Issued 1,000 shares of $1 par value common stock for equipment

Dr Equipment                                                8,000

Cr Additional paid-in capital Common Stock            7,000

Cr Common Stock                                                          1,000

It doesn't  involve any cash however affects the company financial position so it will be recorded in schedule of non cash financing and investing activities

Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.

Dr Cash                                         1,200

Dr Accumulated Depreciation    7,000

Dr Loss on Disposal                     1,800

Cr Equipment                                                        10,000

There would be an increased cash flow of $1,200 under investing activities.

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andrey2020 [161]

Answer:

C) Sales markets of the foreign entity are primarily in foreign countries.

Explanation:

The US dollar is the most commonly used currency in the world, and most of foreign trade is carried out using the US dollar. If the foreign entity sells most of its production overseas (exports) then they will use the US dollar as their functional currency since all their exports will be valued in US dollars.

6 0
3 years ago
Manufacturing overhead was estimated to be $562,800 for the year along with 20,100 direct labor hours. Actual manufacturing over
Lemur [1.5K]

Answer:

$604,800

Explanation:

Applied manufacturing overhead is the manufacturing overhead that has been applied to production in a period.

it is calculated with the formula "budgeted overhead rate * actual labor hr"

Budgeted manufacturing overhead = $562,800

Budgeted Direct labor hours = 20,100

Budgeted Overhead rate = 562800/20100 =$28/hr

Actual manufacturing overhead = $543,705

Actual direct labor hours = 21600

Amount of manufacturing overhead applied = predetermined overhead rate * actual hr =28*21600

=$604,800

7 0
3 years ago
Decisions today are becoming _____ complex, due to _____ uncertainty in the decision environment. Question 25 options: 1) less,
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The answer is option 4 more and increased.

Explanation:

Decisions today are becoming more complex, due to increased uncertainty in the decision environment.

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6 0
3 years ago
Suppose that a jewelry store found that when it increased prices by 10 percent, sales revenue increased by 3 percent. Which of t
Anna11 [10]

Answer:

The correct answer is Demand is inelastic, but not perfectly.

Explanation:

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4 0
3 years ago
Equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 ope
CaHeK987 [17]

Answer:

(a). Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

(b). 1st Year Depreciation = $20,000

for 2nd year depreciation = $26,000

(c) 1st year Depreciation= $60,000

2nd year Depreciation = $36,000

Explanation:

a).

Annual Depreciation of Equipment = (Cost of Equipment - Residual Value) ÷ Useful Life of Equipment

= ($150,000 - $30,000) ÷ 5

= $24,000

Rate of Straight Line Depreciation = Annual Depreciation of Equipment ÷ (Cost of Equipment - Residual Value) × 100

= 24,000 ÷ ( $150,000 - 30,000) × 100

= $24,000 ÷ $120,000 × 100 = 20%

Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

b). Unit Of Production For 1st Year Depreciation= (Cost Of Equipment -Residual Value) × Annual Production Units ÷ Total Operating Hours

= ($150,000 - $30,000) × 2,500 ÷ 15,000 = $20,000

Unit of Production for 2nd year depreciation = ( $150,000 - $30,000) × 32,50 ÷ 15,000

= $26,000

c). Declining Balance Depreciation Rate = Straight Line Depreciation Rate × 2

= 20% × 2 = 40%   (Because Declining Balance at Twice the Straight Line Rate)

1st year Depreciation= $150,000 × 40÷100 = $60,000

2nd year Depreciation = ($150,000 - $60,000) × 40÷100 =$36,000

8 0
2 years ago
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