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Mademuasel [1]
3 years ago
15

Whispering Winds Company had the following two transactions related to its delivery truck. 1. Paid $250 for an oil change. 2. Pa

id $800 to install a special gear unit, which increases the operating efficiency of the truck.
Business
1 answer:
inessss [21]3 years ago
8 0

Answer:

Journal Entries

Account                                                    Dr.        Cr.

1.

Repair and maintenance Expense       $250

Cash                                                                    $250

2.

Delivery truck                                         $800  

Cash                                                       $800

Explanation:

Property, plant and equipment are reported in the Fixed asset of the balance sheet. These assets are the depreciated. Fixed assets are initially recorded at cost.

Initially the amount capitalized includes the acquisition cost or purchase price and any direct cost incurred to make asset ready to use.

Any cost incurred to improve the efficiency of the asset will also be capitalised. In this question oil change is a routine maintenance cost  needed to operate the asset. Installation of Special gear unit actually improved the efficiency of the asset as a whole. So, it is capitalised.

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Expected direct materials purchases in Metlock Company are $204000 in the first quarter and $264000 in the second quarter. 35 pe
Nataliya [291]

Answer:

The budgeted cash payments for the second quarter are $225000

Explanation:

The cash payments in the second quarter will comprise of cash purchases for the second quarter which are 35% of purchases for the second quarter along with 65% of payments due for purchases of the first quarter.

The cash payment budgetedn for the second quarter is,

Cash payment = 0.35 * 264000 + 0.65 * 204000  = $225000

6 0
3 years ago
Type the correct answer in the box. Spell all words correctly. What is the first step taken by the management team in any indust
jarptica [38.1K]

Answer:

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Explanation:

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4 0
2 years ago
Which of the following is an example of synthesizing?
lyudmila [28]

Answer:

It's B.

Explanation:

I believe it's B, Putting ideas and concepts together to form a conclusion.

That's almost exactly the definition of synthesizing anyway. ♥

7 0
2 years ago
Read 2 more answers
. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.
snow_lady [41]

Question attached

Answer and Explanation:

Please find attached

7 0
3 years ago
ohnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.
Vesnalui [34]

Answer:

Johnstone should value the equipment at <u>$40,326.29</u>.

Explanation:

To determine this, the present value of the five annual installments of $8,000 is first calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the five annual installments =?

P = Annual payment = $8,000

r = interest rate = 10%, or 0.10

n = number of years = 5

Substitute the values into equation (1) to have:

PV = $8,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10)

PV = $8,000 * 3.79078676940845

PV = $30,326.29

Therefore, the present value of the five annual installments of $8,000 is approximately $30,326.29.

As result of this:

Value the equipment = Payment on the purchase day + present value of the five annual installments = $10,000 + $30,326.29 = $40,326.29

Therefore, Johnstone should value the equipment at <u>$40,326.29</u>.

7 0
2 years ago
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