Seperate legal entity

1. On December 31st, 2012, Bingo Corp. borrowed $50,000 from a bank. Half of the loan was to be repaid in 2013, and the other ha

olga2289 [7]

Answer:

undervalued assets an liabilities by 50,000

Explanation:

The financial statement for the fiscal year ended on December 31th, 2012

will have the following mistake:

Liabilities are undervalued by 50,000

Cash wll be undervalued by 50,000

As the note payable is not recorded neither the cash receipts from the loan.

Because this transaction is missing, we are not doing a correct representation of reality. This account will be undervalued.

4 0

4 years ago

Question 451 pts In the Freyfogle Company, land decreased $75,000 because of a cash sale for $75,000, the equipment account incr

Juli2301 [7.4K]

Answer: $55,000

Explanation:

From the question, we are told that in the Freyfogle Company, land decreased $75,000 because of a cash sale for $75,000, and the equipment account increased $20,000 due to a cash purchase, while the bonds payable increased $70,000 from an issuance for cash at face value.

The net cash provided by investing activities shows the amount of money that has been spent for investment purposes at a specific period.

Sales of land = $75,000

Less: Equipment purchase= $20,000

Therefore, the net cash provided by investing activities will be:

= $75,000 - $20,000

= $55,000

3 0

4 years ago

What colur is my hair

sdas [7]

Strawberry blonde, dirty blonde, brown/light brown

6 0

3 years ago

1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the jou

laiz [17]

Answer and Explanation:

Before recording the journal entries first we need to do the computations which are shown below:

The predetermined overhead rate is

= $420,000 ÷ 60,000 machine hours

= $7 per machine hour

Now

Particulars Job 101 Job 102 Job 103 Total

Direct materials used 19,200 14,400 9,600 43,200

Direct labor 28,800 11,200 9,600 49,600

overhead applied 7000 28000 14000 49000

total 55,000 53,600 33,200 141,800

COGS Finished WIP

Now the journal entries are as follows

1 Finished goods inventory $53,600

To Work in process inventory $53,600

(Being the transfer of job 102 is recorded)

2a) Cost of goods sold $55,000

To Finished goods inventory $55,000

(being the cost of goods sold is recorded)

2b) Cash $60,000

To sales revenue $60,000

(being the sales revenue is recorded)

3) Manufacturing overhead $4,000 ($49,000 - $45,000)

To Cost of goods sold $4,000

(Being the balance of the manufacturing overhead is recorded)

7 0

3 years ago

The following transactions and adjusting entries were completed by Robinson Furniture Co. during a three-year period. All are re

riadik2000 [5.3K]

Answer:

Year 1

Jan. 8. Purchased a used delivery truck for $24,000, paying cash.

Dr Truck 24,000
Cr Cash 24,000

Mar. 7. Paid garage $900 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck.

Dr Maintenance expenses - Truck 900
Cr Cash 900

Dec. 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is four years, with a residual value of $4,000 for the truck.

Depreciation expense = 2 x 0.25 x $24,000 = $12,000

Dr Depreciation expense 12,000
Cr Accumulated depreciation - truck 12,000

Year 2

Jan. 9. Purchased a new truck for $50,000, paying cash.

Dr Truck new 50,000
Cr Cash 50,000

Feb. 28. Paid garage $250 to tune the engine and make other minor repairs on the used truck.

Dr Maintenance expenses - Truck 250
Cr Cash 250

Apr. 30. Sold the used truck for $9,500. (Record depreciation to date in Year 2 for the truck.)

depreciation expense = 2 x 0.25 x 4/12 x $12,000 = $2,000

Dr Depreciation expense 2,000
Cr Accumulated depreciation - truck 2,000

truck sold at $9,500 - $10,000 (carrying value) = -$500 loss on sale

Dr Cash 9,500
Dr Accumulated depreciation 14,000
Dr Loss on sale - truck 500
Cr Truck 24,000

Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $12,000 and an estimated life of eight years.

Depreciation expense = 2 x 0.125 x $50,000 = $12,500

Dr Depreciation expense 12,500
Cr Accumulated depreciation - truck new 12,500

Year 3

Sept. 1. Purchased a new truck for $58,500, paying cash.

Dr Truck three 58,500
Cr Cash 58,500

Sept. 4. Sold the truck purchased January 9, Year 2, for $36,000. (Record depreciation to date for Year 3 for the truck.)

Depreciation expense = 2 x 0.125 x 8/12 x $37,500 = $6,250

Dr Depreciation expense 6,250
Cr Accumulated depreciation - truck new 6,250

truck sold at $36,000 - $31,250 (carrying value) = $4,750 gain on sale

Dr Cash 36,000
Dr Accumulated depreciation 18,750
Cr Truck new 50,000
Cr Gain on sale - truck new 4,750

Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $16,000 and an estimated useful life of 10 years.

Depreciation expense = 2 x 0.1 x 4/12 x $58,500 = $3,900

Dr Depreciation expense 3,900
Cr Accumulated depreciation - truck three 3,900

5 0

3 years ago

Seperate legal entity​

Seperate legal entity