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ASHA 777 [7]
3 years ago
11

Cedric Company recently traded in an older model computer for a new model. The old model's book value was $140,000 (original cos

t of $370,000 less $230,000 in accumulated depreciation) and its fair value was $210,000. Cedric paid $65,000 to complete the exchange, which has commercial substance.
Calculate the following values:
1. Amount to debit for new equipment
2. Amount to debit accumulated depreciation
3. Amount to credit to cash
4. Amount to credit for old equipment
5. Gain or loss on sale
Business
1 answer:
Semmy [17]3 years ago
8 0

Answer:

1. $210,000

2.$230,000

3. $65,000

4. $370,000

5. $135,000 loss

Explanation:

1. Amount to debit for new equipment

Use the Fair Value of Asset given

2. Amount to debit accumulated depreciation

Use the accumulated depreciation of asset given up.

3. Amount to credit to cash

Use the Cash Paid up

4. Amount to credit for old equipment

Use the cost of asset given up

5. Gain or loss on sale

Gain or loss = Carrying Amount - Fair Value - Cash traded up

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Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the
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Answer:

Explanation:

In business accounting, the inventory conversion period / payables deferral period and average collection period use different inputs due to the fact that Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold. Therefore the accounts receivable (average collection period) are attached and dependent on the specific/changing price of the goods sold.

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3 years ago
Liberty is calculating her cost of goods sold to enter on her Schedule C. Her inventory at the beginning of the year amounted to
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Answer:cost of goods sold for  Liberty to enter on her Schedule C = $12,000

Explanation:

 Cost of goods sold (COGS) of a company are all the  costs ie( the raw materials and labor ) involved directly in the production of the particular  goods sold by the company.

Given

Beginning Inventory = $50,000

Purchases regarding Labour and materials= $20,000

Ending inventory = $58,000

Cost of Goods Sold is calculated as Beginning Inventory + Purchases During the Period – Ending Inventory

$50,000 + $20,000 - $58,000

$70,000 - $58,000

$12,000

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3 years ago
In most organizations, who is primarily responsible for appraising an employee's performance
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It is and should be the managers job to do that
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The general pattern that consumption of the first few units of any good tends to bring a higher level of utility to a person tha
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Law of Diminishing Marginal Utility

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7 0
3 years ago
1. B. Journalize the transactions for May, starting on Page 20 of the journal.*
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Answer:

Rent Expense (Dr.) $5,000

Cash (Cr.) $5,000

Inventory (Dr.) $35,380

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Accounts Receivable Korman Co. (Dr.) $62,000

Sales (Cr.) $62,000

Cost of Goods Sold (Dr.) $48,500

Inventory (Cr.) $48,500

Explanation:

Advertising Expense (Dr.) $21,800

Cash (Cr.) $ 21,800

Cash (Dr.) $62,000

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Customer Refund Payable (Dr.) $31,500

Cash (Cr.) $31,500

Sales Salaries Expense (Dr.) $12,000

Office Salaries Expense (Dr.) $ 38,000

Cash (Cr.) $50,000

Store Supplies Expense (Dr.) $2,200

Cash (Cr.) $2,200

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3 years ago
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