All categories

3 years ago

Rane Company had the following assets on January 1, 2017.

Business

1 answer:

Viefleur [7K]3 years ago

6 0

Answer:

Journal entries are prepared below

Explanation:

Journal entries required are given as follows

Jan. 1 (To record retirement of machinery)

Debit Credit

Accumulated depreciation-equipment $69,580

Equipment $69,580

June. 30 (To record the depreciation expense on forklift)

Debit Credit

Depreciation expense 2940

Accumulated depreciation-equipment 2940

Working

Annual depreciation = $29,400 / 5 years = $5880

depreciation for 6 months = $5880 x 6/12 = $2940

June. 30 (To record sale of forklift)

Debit Credit

Cash 11760

Accumulated depreciation-equipment(w) 20580

Equipment 29400

Gain on disposal of plant assets 2940

Working

Accumulated depreciation = 5880 x 3.5 years

Dec. 31 (To record depreciation expense on truck)

Debit Credit

Depreciation expense 3724

Accumulated depreciation-equipment 3724

Working

Annual depreciation on truck = ($32,736- $2,944) / 8 years = $3724

Depreciation for 2017 = $3724

Dec. 31 (To record discarding of the truck)

Debit Credit

Salvaged materials 2,944

Accumulated depreciation-equipment 22344

Loss on disposal of plant assets 7448

Equipment 32,736

Working

Accumulated depreciation = 3724 x 6 years = 22,344

You might be interested in

Why do you think most companies make use of celebrities in their marketing promotional activities?

Amanda [17]

Answer:

Celeberties get a lot of attension, companies want attension to sell the goods or serveicef they see a celebirty they feel safe in buying their things.

Explanation:

7 0

3 years ago

Read 2 more answers

The following information was taken from the bank reconciliation for Mooner Sooner Inc. at the end of the year:

Lunna [17]

Answer:

The correct cash balance that should be reported in Mooner Sooner's balance sheet at the end of the year is $5,800.

Explanation:

For adjusting the bank statement balance do not consider note collected by the bank, service fee and NSF check returned. Note collected by the banks are already recorded in the bank passbook, so there is no adjustments are needed in the bank statement. Service charge is deducted by the bank, so service charge also recorded in bank passbook; hence no adjustments are required in the bank statement balance. In the case of NSF check returned no adjustments are needed in the bank statement balance.

correct bank balance = Bank balance + Deposits outstanding - Checks outstanding

= $9,000 + $4,600 - $7,800

= $5,800

MAKE SURE YOU AVOID THIS:

For calculating correct cash balance only checks outstanding and deposits outstanding are adjusted with bank balance. For getting correct cash balances add deposit outstanding to the balance as per the bank and minus outstanding checks. Deposit in transit amount must be added to the bank side of the bank reconciliation statement and outstanding check must be deducted from the bank side of the bank reconciliation statement. Here, bank balance is $9,000, checks outstanding are $7,800 and deposits outstanding is $4,600, hence correct cash balance is $5,800.

Therefore, The correct cash balance that should be reported in Mooner Sooner's balance sheet at the end of the year is $5,800.

3 0

3 years ago

Pinkie Copy Center sells laser printers and supplies. Pinkie Copy Center started the year with 90 containers of ink (average cos

Naddik [55]

Answer:

A) FIFO costing method

B) LIFO cost method

Explanation:

Pinkie copy center income tax expense ending December 31

Average cost FIFO LIFO

Sales revenue 13860 13860 13860

Cost of goods sold 6300 6246 6363

Gross profit 7560 7614 7497

Operating expense 4000 4000 4000

Net income before tax 3560 3614 3497

Income tax expense 1424 1446 1399

Net income 2136 2168 2098

7 0

3 years ago

An all equity capitalized firm (i.e., no debt in the capital structure) is expected to produce a cash flow in the amount of $900

xz_007 [3.2K]

Answer:

Explanation:

Cash flow at end of year 1 = $900,000

Growth rate = 2%

Required rate of return = 10%

Estimated Market value = Cash flow at end of year 1 / (Required rate of return - Growth rate}

Estimated Market value = $900,000 / (0.10 - 0.02)

Estimated Market value = $900,000 / 0.08

Estimated Market value = $11,250,000

So, the the estimated Market Value of the Firm is $11,250,000

6 0

3 years ago

After a report that saving in the united states is at an all time low, jeopardizing many family's retirement plans, americans be

Ivanshal [37]

Savings usually have positive impacts on economic growth of a nation. Firstly, increase in the amount of money saved increase the amount of money that are available in the banks which can be used for investment purposes that will benefit the economy. Secondly, high saving rate in an economy increases the ability of that economy to recover from inflation and recession. Personally and nationally, saving helps to cope better with economic and financial down turns.

5 0

4 years ago