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earnstyle [38]
3 years ago
5

Berning Company purchased a tractor at a cost of $540,000. The tractor has an estimated salvage value of $60,000 and an estimate

d life of 8 years, or 10,000 hours of operation. The tractor was purchased on January 1, 2019 and was used 2,400 hours in 2019 and 2,100 hours in 2020. On January 1, 2021, the company decided to sell the tractor for $210,000. Berning uses the units-of-production method to account for the depreciation on the tractor. Based on this information, the entry to record the sale of the tractor will show:
Business
1 answer:
hjlf3 years ago
8 0

Answer:

Berning Company

Journal Entry to record the sale of Tractor:

Jan. 1, 2021:

Debit Sale of Tractor $540,000

Credit Equipment (Tractor) $540,000

To transfer the cost of tractor to Sale of Tractor.

Debit Accumulated Depreciation - Tractor $216,000

Credit Sale of Tractor $216,000

To transfer the depreciation to Sale of Tractor.

Debit Cash Account $210,000

Credit Sale of Tractor $210,000

To record the cash receipts from the sale.

Explanation:

a) Determination of Accumulated Depreciation for the Tractor:

Depreciable amount = $480,000 ($540,000 - $60,000)

Depreciable rate = $48 ($480,000/10,000) per hour

2019 Depreciation Expense =  $115,200 ($48 x 2,400)

2020 Depreciation Expense = $100,800 ($48 x 2,100)

Accumulated Depreciation = $216,000

b) Calculation of the Book Value = Cost - Accumulated Depreciation

= $540,000 - $216,000 = $324,000

c) Gain or Loss on Sale:  The sales proceed is compared with the book value to determine if there is a gain or loss from the sale.  In this case, there is a loss of $114,000 ($324,000 - $210,000), which will be transferred to the Income Summary.

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Which of the following refers to the strategic process of distributing, promoting, and pricing products, and discovering the des
I am Lyosha [343]

Answer:

a. electronic marketing

Explanation:

  • The electronic marketing refers to the strategic processing of the distribution and promotion and pricing of the products and discovery of the desires of the customers and users of their digital media in digital marketing to develop a strategic plan for the promotion of the marketing.
3 0
3 years ago
Data for 2021 were as follows: PBO, January 1, $243,000 and December 31, $278,000; pension plan assets (fair value) January 1, $
tester [92]

Answer:

$45,000

Explanation:

Computation for the projected benefit obligation

December 31 PBO($278,000)

December 31 Plan assets 233,000

Funded status($45,000)

Therefore the projected benefit obligation was underfunded at the end of 2021 by: $45,000

7 0
3 years ago
Evaluate the suitability of an overdraft compared to the other three products detailed in the case study and recommend, with rea
navik [9.2K]

I think it was just the same thing that I had to make real things I was not sending it is telling me to go abroad and get a good job in the future I would have you got to do something I am sure you would be able for that I see you have to ask question time and how you can send you after classes to be host in a way that you are looking forward to and your relationship will send you back from your experience with a new relationship and a government that needs a good job to

Explanation:

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3 0
2 years ago
Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties decreases by 20%, the q
aalyn [17]

Answer:

Penguin patties and kipples should be advertise together.

Explanation:

The cross-price elasticity formula is:

CPE= % Δq of good A/ %Δp of good B

The CPE of penguin patties and raskels is:

CPE= -22%/-20%

CPE= 1.1

If the CPE is positive, then both goods are substitutes, which means that an increase in price of on good will affect positively the quantity demanded for the other good.

The CPE of penguin patties and kipples:

CPE= 7%/-20%

CPE=-0.35

If the CPE is negative, then both goods are complementary, which means that an increase in price of one good will affect negatively de quantity demanded for the other good.

You should advertise complementary goods together because both could be positively benefited by advertising. If the demand for good A increases, it is probable that the demand for good B increases too. If you advertise substitute goods, people will always prefer one, then the advertising will only be effective for one of the good but not for both.

6 0
3 years ago
Oriole Inc. reported total assets of $2407000 and net income of $324000 for the current year. Oriole determined that inventory w
swat32

Answer:

Total Asset $2,381,500

Net income $298,500

Explanation:

Overstated Inventory Leads to the overstatement of Total Assets value and Net Income. Ending Inventory Value is added in the total asset balance, overstatement in ending inventory causes overstatement in total assets.

The Ending Inventory is also used in the calculation of Cost of Goods sold. Overstated Inventory will cause understatement in Cost of Goods sold and overstatement in Net Income.

To rectify its effect we will deduct the overstated value of Inventory from Total Asset balance and Net Income value.

Total Asset = $2,407,000 - $25,500 = $2,381,500

Net Income = $324,000 - $25,500 = $298,500

4 0
3 years ago
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