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VMariaS [17]
3 years ago
7

Carla Corporation owns machinery that cost $24,800 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $

2,976 per year, resulting in a balance in accumulated depreciation of $10,416 at December 31, 2020. The machinery is sold on September 1, 2021, for $13,020.
Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accoun
Business
1 answer:
liberstina [14]3 years ago
8 0

Answer:

a. Journal entries to update depreciation for 2021:

Debit Depreciation expense $1,984

Credit Accumulated depreciation account $1,984

b. Journal entries to record the sale:

Debit Cash $13,020

Debit Accumulated depreciation account $12,400

Credit Gain on asset disposal  $620

Credit Machinery asset $24,800

Explanation:

a. Depreciation of the machinery has been recorded at a rate of $2,976 per year.

Depreciation per month = $2,976/12 = $248. In 2021, the machinery is used from Jan 1 to August 31 (8 months).

Depreciation expense for 2021 = $248 x 8 = $1,984

Journal entries to update depreciation for 2021:

Debit Depreciation expense $1,984

Credit Accumulated depreciation account $1,984

b.

Accumulated depreciation account at December 31, 2020 has credit balance of $12,400 ($10,416 + $1,984 = $12,400)

The carrying amount of the machinery = Cost of the machinery -  Accumulated depreciation = $24,800 - $12,400 = $12,400

Sales price - Carrying amount of the machinery = $13,020 - $12,400 = $620>0

The company recognizes gain on the sale. Journal entries to record the sale:

Debit Cash $13,020

Debit Accumulated depreciation account $12,400

Credit Gain on asset disposal  $620

Credit Machinery asset $24,800

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LBM, Inc. issues 25,000 shares of common stock for $20 per share. The stock has a par value of $1 per share. By what amount woul
Arisa [49]

Answer:

$475,000

Explanation:

Calculation for By what amount would LBM credit capital in excess of par

Dr Cash $500,000

(25,000 shares*$20 per share)

Cr Common Stock $25,000

(25,000 shares*$1 per share)

Cr Capital in excess of par $475,000

($500,000-$25,000)

Therefore based on the above Journal entry and calculation the amount that LBM would credit as capital in excess of par will be $475,000 ($500,000-$25,000).

5 0
3 years ago
Current operating income for Bay Area Cycles Co. is $74,000. Selling price per unit is $120, the contribution margin ratio is 30
NeX [460]

Answer:

1. 6,944 units and $833,333.33

2.  $1,080,000 and  22.83%

Explanation:

The computations are shown below:

1. Break-even point in units

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit × contribution margin ratio

= $250,000 ÷ $36

= 6,944 units

Break-even point in sales

= (Fixed expenses ) ÷ (Contribution margin ratio)  

= $250,000 ÷ 30%

= $833,333.33

2. For margin of safety and margin of safety ratio:

Margin of safety = Expected sales - break even sales

where,

Expected sales = (Operating income + fixed expense) ÷ (contribution margin ratio)

= ($74,000 + $250,000)

= ($324,000) ÷ (30%)

= $1,080,000

So, the margin of safety would be

= $1,080,000 - $833,333.33

= $246,667

Margin of safety ratio = Margin of safety ÷ total sales

                                      = $246,667 ÷ $1,080,000

                                      = 22.83%

3 0
3 years ago
How theory and thinking on innovation and creativity can contribute to applied practice ​
konstantin123 [22]

Creativity and innovation both contribute to applied practice.

Explanation:

Creativity refers to the way in which new ideas related to a particular item is brought in reality. Innovation refers to the way of implementing the new idea that was not recognized before. The items are unique in nature.

Creativity deals with new ideas as well as different possibilities that are used to solve problems as well as helps in communicating with others. Creativity also helps in entertainment purpose. These are the ways where innovation and creativity  contribute to applied practice.

5 0
3 years ago
Brainliest Week
iren [92.7K]

Answer:

B Cost of ingredients for cupcakes rises.

Explanation:

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A stock trading company had the budget for enhancing its secondary datacenter approved. Since the main site is in a hurricane af
marshall27 [118]

Answer:

The correct answer is hot site.

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A hot site is a site where a company's operation can take place after a disaster. it is a duplicate of the original site and is situated at an off-premises location. It is a backup site which has all the equipment that is required to continue operations. it is always online and immediately available.  

A warm site has lesser equipment than a hot site and requires more time to be operational. A cold site has the least equipment and takes a few days to be operational but is the cheapest alternative.  

Since the company here wants the business to resume in the least time it should go for a hot site.  

8 0
3 years ago
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