Answer:
Cost of new machine:
= List price of new machine - Trade allowance + Fair value of old machine
= $16,000 - $9,000 + $6,000
= $13,000
Therefore, the journal entry is as follows:
Cost of new machine A/c Dr. $13,000
Accumulated depreciation (Book Value) A/c Dr. $4,000
Loss on exchange of machine A/c Dr. $2,000
To Old Machine (Book Value) $12,000
To Cash (16,000 - 9,000) $7,000
(To record the machine exchange)
Answer:
Explanation: from the above question, the total of cash and cash equivalent to be recorded in the balance sheet includes all cash balances in the bank and cash balance in the petty cash account.
From the above question, the cash and cash equivalent balance as at April 30 is $1,000 plus all bank balances as at that date.
The answer to this question is that the best medium would be a face to face meeting. A face to face meeting is a meeting where in group of people are being held in a specific meeting room to meet and discuss a specific agenda. Face to face meetings are said to be the best type of meeting because this ensures engagement and it is more efficient.
Answer:
The alternative that should be chosen assuming identical replacement is:
Alternative B.
Explanation:
a) Data and Calculations:
Alternatives:
A B
First Cost $5,000 $9,200
Uniform Annual Benefit $1,750 $1,850
Useful life, in years 4 8
Rate of return 7% 7%
Annuity factor 3.387 5.971
Present value of annuity $5,927.25 $11,046.35
Net cash flow $927.25 $1,846.35
b) Alternative B yields a higher return than Alternative A. Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.