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Arte-miy333 [17]
2 years ago
8

During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts

reflected the following:
Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line)
Machine A $55,000 $12,300 7 years $24,400 (4 years)
Machine B 15,800 2,700 5 years 7,860 (3 years)

The machines were disposed of in the following ways:

a. Machine A: Sold on January 2, for $35,100 cash.
b. Machine B: On January 2, this machine was sold to a salvage company at zero proceeds (and zero cost of removal).

Required:
Give the journal entries related to the disposal of Machine A and Machine B on January 2 of the current year.
Business
1 answer:
julsineya [31]2 years ago
7 0

Answer and Explanation:

The journal entries are shown below:

1) Journal entry

On Jan 2

No journal entry is required  

On Jan 2

Cash $35100  

Accumulated depreciation-Machine A $24400  

          To Gain on sale of machine A  4500

         To Machine A  55000

(Being the sale of machine A is recorded)  

2) Journal entry

On Jan 2

No journal entry is required  

On Jan 2  

Accumulated depreciation-Machine B 7860  

Loss on disposal of machine B 7940  

           To Machine B  15800

(Being disposal of machine B is recorded)  

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The loan amount (principal) is $50,000 and the annual interest paid is $5,500. What is the annual interest rate
Mumz [18]

Answer:

The interest rate is 11%

Explanation:

The loan amount = $50000

Interest amount = $5500

Since the annual interest amount and the principal amount is given so we have to find the interest rate by using the given information. Below is the formula to find the interest rate.

Let the interest rate = x

Principal × interest rate = Interest amount

$50000 × r = $5500

r  = $5500 / $50000

r = 0.11 or 11%

The interest rate is 11%

5 0
3 years ago
Meatpackers, Inc., enters into a contract with Nevada Ranch for the delivery of a certain number of beef cattle on a set schedul
frez [133]

Answer:

Provide the buyer with funds for a foreseeable loss beyond the contract

Explanation:

Consequential damages in contracts is different from incidental or actual damages because it causes a loss that impacts the business of the other party beyond the contract horizon, when the opposite party fails to fulfill his side of the contractual obligations.

In the scenario, Nevada's failure to deliver within agreed contractual timing is not just delaying the time of Meatpackers but as a consequence, is also causing them loss in money terms which will impact their business beyond the contract horizon.

Hence an award of consequential damages to Meatpackers will provide the buyer with funds for a foreseeable loss beyond the contract.

6 0
3 years ago
Read 2 more answers
Medlock Company sold inventory on credit for $3,000, terms 2/10, n/30. The cost of the merchandise to Medlock was $2,400. How mu
Finger [1]

Answer:

Medlock will receive $2,940

Explanation:

Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

According to given data

Sales = $3,000

As the payment is made within discount period, so discount will be availed

Discount  = $3,000 x 2% = $60

Now deduct the discount from due balance to calculate the amount received.

Amount Received = $3,000 - $60 = $2,940

4 0
3 years ago
Which expense category will most likely be changed to allow money for the purchase of a car?
Ivan
<h2>Reducing the "Entertainment " will hold good for the given scenario</h2>

Explanation:

There things which a man needs like food, water, shelter, etc.

Savings : This aspect is necessary for helping us in crucial point. It can serve as an another hand on demand.

Groceries : This is most important component of every men and women for living. So it cannot be reduced.

Utilities : This is equally important.

Entertainment : This shows luxurious aspect and not a mandatory one. So the amount spent in this category should be reduced.

7 0
3 years ago
Service Department Cost Activity Base for Allocation Graphics Production $200,000 number of copies Accounting 500,000 number of
Mandarinka [93]

Answer:

$350,000

Explanation:

Production =  $200,000 number of copies

Accounting = $500,000 number of invoices processed

Personnel Department = $400,000 number of employees

These are all service cost

Total number of copies = 20,000 + 30,000 + 50,000 = 100,000

Total number of invoices processed = 700 + 800 + 500 = 2,000

Total number of employees = 130 + 145 + 125 = 400

Rate per service shall be as follows:

Production = $200,000/100,000 = $2 per copy

Cost of Super Division = $2 \tiimes 50,000 = $100,000

Accounting = $500,000/2,000 = $250 per invoice

Cost of Super Division = $250 \tiimes 500 = $125,000

Personnel Department = $400,000/400 = $1,000 per employee

Cost of Personnel Department = $1,000 \tiimes 125 = $125,000

Total service cost of Super Department = $100,000 + $125,000 + $125,000

= $350,000

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3 years ago
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