1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
How to identify the significant accounts, disclosures, and relevant assertions in auditing long-lived assets?
RSB [31]

An account or disclosure is a vast account or disclosure if there's an inexpensive possibility that the account or disclosure should contain a misstatement that, personally or when aggregated with others, has a fabric impact on the financial statements, considering the risks of each overstatement.

On the subject of auditing balance sheet accounts, which includes lengthy-term property and liabilities, the important thing assertions that an auditor will test are lifestyles; rights and duties; completeness and valuation.

To be able to become aware of these risks, we carry out techniques such as subsequent: Discussions with key employees to gain knowledge of your employer and its environment. Discussions and walkthroughs achieved and documented over internal manipulation tactics. diverse analytical tactics.

Learn more about environment here: brainly.com/question/17413226

#SPJ4

6 0
2 years ago
Complete the following sentence. When the long run average cost (LRAC) curve has a positive slope, it implies there are:
Andreas93 [3]

Answer:

It implies there are diseconomies of scale.

Explanation:

It implies there are diseconomies of scale in the industry

Because as the quantity of units output increase, the cost also increase. While in economies of scale, the slope for the LRAC will be negative, as each increase in output lowers the cost.

When this occurs, there is a lower change of monopoly in the industry, as the larger firm also faces the larger cost, so the supply tend to be more diverse.

While a, indifined negative slope will generate monopolies as their cost become lower at gerater the output.

4 0
3 years ago
When firms in a perfectly competitive market face the same costs, in the long run they must be operating a. under diseconomies o
ella [17]

Answer:

d. where price is equal to average fixed cost.

Explanation:

Firms involved in a perfectly competitive market face the same cost, <em>they will theoretically make zero profit on the long run.</em> This happen at the point where price is equal to average fixed cost.

7 0
3 years ago
Mountain Products has decided to raise $6 million via a rights offering. The company will issue one right for each share of stoc
Scorpion4ik [409]

Answer:

 Value of  one right   = $2.63

Explanation:

<em>A right issue is the issue of additional new shares to existing shareholders in proportion to their existing shareholdings at a price less than the current market price.</em>

<em>The value of rights is the difference between the theoretical ex-right price and the right price . </em>

Value of rights= Theoretical ex-right price - Right price

<em>The theoretical ex-right price is the price at which a share is expected to settle after the right issue assuming all the rights are taken</em>

Theoretical ex-rights price = Total value of shares after right issue/Number of shares after right issues

<em />

1 unit  of old share       at   $25.25 =  $25.25

I unit of right share   at       $20.00= <u>$20.00</u>

Total value of 2 shares                     <u>$ 45.25</u>

Theoretical ex-rights price  = 45.25/2 =$22.63

Theoretical ex-rights price=$22.63

Value of rights= Theoretical ex-right price - Right price

                       =  22.63 - 20.00

 Value of  one right   = $2.63

6 0
3 years ago
He kelly family and the stewart family each used their sprinklers last summer. the water output rate for the kelly family's spri
tigry1 [53]
This problem is actually under the subject of Mathematics, particularly, Algebra. For work problems, you can use a convenient technique of dimensional analysis. This is done by multiplying units of measurement, then cancelling out like terms in order to come up with the units of the final answer. For this problem, the total amount of liters is 2,100. So, the equation would be

Volume of Kelly's family + Volume of Stewart's family = 2,100

However, we are only given the rates for each family in liters per hour. To come up with the final answer with a unit of measurement in Liters, we must multiple the rate of L/hour with the individual time. Let x be the time Kelly's sprinkler was used, and y for Stewart's family.

(20 L/h)(x hours) + (40 L/h)(y hours) = 2,100

This is the first equation. The second equation is the total time. 

x + y = 65 hours

Rearranging the equation, y = 65 - x. Let's substitute this to the first equation.

20x + 40(65-x) = 2,100

Solving for x, then substituting it to the second equation to obtain y,

x = 25 hours
25 + y = 65
y = 40 hours.

Thus, Kelly's sprinkler was used for 25 hours, while Stewart's sprinkler was used for 40 hours.
8 0
3 years ago
Other questions:
  • You decide that you need more information on how employees feel about diversity, so you create a paper and pencil survey on empl
    9·1 answer
  • Presented below are selected account balances for Homer Winslow Co as of December 31, 2014.
    6·1 answer
  • You are planning to purchase the stock of Ted's Sheds Inc. and you expect it to pay a dividend of $3 in 1 year, $4.25 in 2 years
    13·1 answer
  • All of the following are reasons to use an estimated method of costing inventory except: A. perpetual inventory records are not
    8·1 answer
  • Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the rang
    10·1 answer
  • How have the general ideologies of each major party change over time?
    12·1 answer
  • The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were compl
    14·1 answer
  • 4. Assess this scenario: Jerry is a manager at FTG Corporation. Jerry likes to gather all the information he possibly can in a s
    10·1 answer
  • The exchange gain or loss on repatriated funds from a foreign branch is calculated by multiplying the nominal amount of the fund
    10·1 answer
  • Olivia bakes cakes and Andrew grows corn. Olivia and Andrew both like to eat cake and eat corn. In which of the following cases
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!