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posledela
3 years ago
5

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acqu

ired at the beginning of 2018 for $2,720,000. Its useful life was estimated to be six years with a $200,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method.
The effect of this change on depreciation for each year is as follows:

Year Straight-Line Declining Balance Difference
2018 $400 $853 $453
2019 400 569 169
2020 400 379 (21)
$1,200 $1,801 $601

Required:
Prepare any 2021 journal entry related to the change. (If no entry is required for a particular event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Business
1 answer:
prohojiy [21]3 years ago
5 0

Answer: Please see below for answers

Explanation:

Year Straight-Line Declining Balance Difference  (000s)

2018       $400          $853                     $453  

2019        400             569                        169  

2020        400             379                        (21)  

               $1,200        $1,801                    $601

Asset cost =$2,720,000

Accumulated depreciation till 2020= $1,801,000

Book value beginning of 2021=$919,000

Residual value=                         -$200,000

Depreciable value=                    $719,000

Remaining estimated life= 6-3years=3

Annual straight line depreciation=    $719,000 /3 = $239,667

rounded dollar= $240,000

2021 journal entry

Adjusting entry                     Debit                   Credit  

Depreciation expense     $240,000

Accumulated depreciation                               $240,000

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You are planning a store on a large lot. Your budget only allows for 800 linear feet of walls. What is the maximum square
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Answer:

The correct solution is "40,000 sq/ft".

Explanation:

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2 years ago
Repair calls are handled by one repairman at a photocopy shop. Repair time, including travel time, is exponentially distributed,
wolverine [178]

Answer:

the average number of customers awaiting repairs = 0.30

the system utilization = 42

the amount of time that the repairman is not out on a call is  = 4.64 hours

the probability of two or more customers in the system = 0.1764

Explanation:

Given that :

Repair time, including travel time =  mean of 1.6 hours per call.

Requests for copier repairs = mean rate of 2.1 per eight-hour day

i.e mean rate R = 2.1/day

Time = 8 hours

thus; mean rate μ = 8 hours/ 1.6 hours = 5

(a)

Let the average number of customers awaiting repairs be I_i :

I_i = \dfrac{R^2}{\mu (\mu-R)}

I_i = \dfrac{2.1^2}{5 (5-2.1)}

I_i = \dfrac{4.41}{5 (2.9)}

I_i = \dfrac{4.41}{14.5}

\mathbf{I_i = 0.30}

the average number of customers awaiting repairs = 0.30

(b) Determine system utilization.

The system utilization is determined as follows:

\delta = \dfrac{R}{\mu}

\delta = \dfrac{2.1}{5}

{\delta = 0.42}

\mathbf{\delta = 42}

(c) The amount of time during an eight-hour day that the repairman is not out on a call is calculated as :

Percentage of Idle time = 1 - \delta

Percentage of Idle time = 1 - 0.42

Percentage of Idle time = 0.58

However during an 8 hour day; The amount of time that the repairman is not out on a call is = 0.58 × 8 = 4.64 hours

(d)

the probability of two or more customers in the system by assuming Poisson Distribution is:

P(N ≥ 2) = 1 - (P₀+ P₁)

where;

P₀ = 0.58

P₁ = 0.58  × 0.42 = 0.2436

P(N ≥ 2) = 1 - ( 0.58 + 0.2436)

P(N ≥ 2) = 1 - 0.8236

P(N ≥ 2) = 0.1764

Thus; the probability of two or more customers in the system is 0.1764

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