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andrezito [222]

3 years ago

15

On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of

$28,000. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
No Date General Journal Debit Credit
1 Jan. 2 Gain on disposal of machinery 1,000
Accumulated depreciation 28,000

1 answer:

Alex Ar [27]3 years ago

3 0

Answer:

Dr Accumulated depreciation-Machinery 28,000

Dr Loss on disposal 1000

Cr Cash 1000

Cr Machinery 28,000

Explanation:

Based on the information given the appropriate journal entry to record the transaction on On January 2 is :

On January 2

Dr Accumulated depreciation-Machinery 28,000

Dr Loss on disposal 1000

Cr Cash 1000

Cr Machinery 28,000

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On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $31,000. A total of $2,800 was paid

spayn [35]

Answer:

the amount of depreciation for Year 1 is $3,948

Explanation:

Step 1 : Determine Cost of Equipment

<em>Cost according to IAS 16 means purchase price plus other costs directly incurred in bringing the asset to location and condition of use as intended by management.</em>

Purchase Price $31,000

Installation and testing $2,800

Total Cost $ 33,800

Step 2 : Determine the depletion rate

Depletion rate = (Cost - Salvage Value) ÷ Estimated Production

= ($ 33,800 - $5,600) ÷ 100,000 units

= 0.282

Step 3 : Determine the Depreciation Expense

Depreciation Expense = Depletion rate x Units Produced

= 0.282 x 14,000 units

= $3,948

Conclusion

the amount of depreciation for Year 1 is $3,948

7 0

3 years ago

Consider Pacific Energy Company and Atlantic Energy, Inc., both of which reported earnings of $961,000. Without new projects, bo

lys-0071 [83]

Answer:

A. 7.14

B. 7.96

C.8.71

Explanation:

A. Calculation for the the current PE ratio for each company

First step is to find the market value of the stock using this formula

Market value of stock=Earnings/Return percentage

Let plug in the formula

Market value of stock =$961,000/0.14

Market value of stock =6,864,285

Last step is to find the current PE ratio for each company using this formula

Current PE ratio=Market value of stock/Earnings

Let plug in the formula

Current PE ratio=6,864,285/$961,000

Current PE ratio=7.14

Therefore the Current PE ratio is 7.14

B. Calculation for the new PE ratio of the company

First step is to find the market value of the stock using this formula

Market value of stock =(Earnings+Additional earnings) /Return percentage

Let plug in the formula

Market value of stock =($961,000+$111,000) /0.14

Market value of stock=$1,072,000/0.14

Market value of stock=7,657,142

Last step is to find the new PE ratio of the company using this formula

New PE ratio=Market value of stock/Earnings

Let plug in the formula

New PE ratio=7,657,142/$961,000

New PE ratio=7.96

Therefore the New PE ratio is 7.96

C.Calculation for the new PE ratio of the firm

First step is to find the market value of the stock using this formula

Market value of stock =(Earnings+Increase in earnings) /Return percentage

Let plug in the formula

Market value of stock =($961,000+$211,000) /0.14

Market value of stock=$1,172,000/0.14

Market value of stock=8,371,428

Last step is to find the new PE ratio of the company using this formula

New PE ratio=Market value of stock/Earnings

Let plug in the formula

New PE ratio=8,371,428/$961,000

New PE ratio=8.71

Therefore the New PE ratio is 8.71

7 0

3 years ago

Which of these are true of super political action committees, but not of PACs? Select all that apply.

fomenos

2: <span>Super PACs support candidates’ campaigns
3: </span><span>Super PACs enable unlimited donations.
4: </span><span>Super PACs have fewer government restrictions.
hope this helps</span>

5 0

4 years ago

Read 2 more answers

You are considering the purchase of a common stock that paid a dividend of $2.00 yesterday. You expect this stock to have a grow

Blababa [14]

Answer:

D) $62.57

Explanation:

One should be willing to pay the intrinsic value or fair price, computed using the present value of dividends

Intrinsic value or fair Price = 2.3/1.14 + 2.645/1.14^2 + 3.04/1.14^3 + (3.04*(1+10%)/(14%-10%))/1.14^3

= $62.57

Therefore, You should be willing to pay $62.57 for this stock.

3 0

3 years ago

Carrie is a project manager. She is using a spreadsheet to calculate how much the project will cost. She enters the salaries for

mart [117]

Answer: =(B2+1.5)*(B3+1.5)*(B4+1.5)*(B5*1.5)

Explanation: my guess

5 0

3 years ago

Read 2 more answers