Classifying assets liabilities and owners equity

Swann Company sold a delivery truck on April 1, 2016. Swann had acquired the truck on January 1, 2012, for $45,500. At acquisiti

olganol [36]

Answer:

1.

Journal Entries

a.

Dr. Cash_________________$11,125

Dr. Accumulated Depreciation $36,125

Cr. Truck ________________ $45,500

Cr. Gain on Disposal ________$1,750

b.

Dr. Cash_________________$7,525

Dr. Loss on Disposal ________$1,850

Dr. Accumulated Depreciation $36,125

Cr. Truck ________________ $45,500

2.

a.

The gain is reported as a realized gain in the income statement after operating income for the period.

b.

The loss is reported as a realized loss in the income statement after operating income for the period.

Explanation:

1.

We need to calculate the depreciation for the 3 months of 2016.

Depreciation for the period = ( ( Initial cost -Residual Value ) / Useful life ) x Time Fraction = ( ( $45,500 -$3,000 ) / 5 ) x 3/12 = $2,125

Book Value on April 1, 2016 = Book Value on December 31, 2015 - Depreciation for 2016 = $11,500 - $2,125 = $9,375

Accumulated Depreciation = Initial cost - Book value = $45,500 - $9,375 = $36,125

Now compare The bok value o sale price to calculate the gain or losss

a.

Gain = Sale Value - Book value = $11,125 - $9,375 = $1,750

b.

Loss = Book Value - Sale value = $9,375 - $7,525 = $1,850

2.

4 0

3 years ago

Write a paragraph in no more then 100 words. Do you think it's right to let animals work for human ?

valina [46]

Answer:

Animal rights is the philosophy according to which some, or all, animals are entitled to the possession of their own existence and that their most basic interests—such as the need to avoid suffering—should be afforded the same consideration as similar interests of human beings.That is, some species of animals haveOn the one hand, a group of people believe that mankind does not have the rights to exploit animals, as they are also living creatures. It is true that animals live by following their instinct, but they have the same feeling as human beings, therefore it would not be fair for mankind to exploit them. In several cases, it has been reported that some of the cows had cried before they were slaughtered in the slaughterhouse, which means that they also had the same feeling as human beings. In another reported cases, some of the animals was treated poorly by their masters, though they had been exploited heavily and made them sick or injured. the right to be treated as individuals, with their own desires and needs, rather than as unfeeling property.

Explanation:

it has become a debatable topic about the exploitation of animals by mankind. Some people believed that animals should not be exploited and should be treated fairly by human beings. In contrast, others think animals should be utilised to assist humans in various kinds of ways, such as the source of food or for medical testing. The following essay will discuss both views in details, but in my opinion, I believe that animals can be used as the source of food or to assist human beings in the proportionate way and human should treat them properly.

8 0

3 years ago

Read 2 more answers

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer aw

Ghella [55]

Introduction Stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features.

Explanation:

We buy millions of goods every year as customers. And these goods have a life cycle just as we do.

The process of life of the product has 4 stages, each of which has specific characteristics, which mean different for the organisation trying to handle the life cycle of its individual products.

Introduction Stage : This stage of the cycle could make the company announcing a new product the most expensive. The item's market size is too small, which means that sales are weak, but they will be rise.

Growth Stage: The growth phase usually features a significant increase in sales and earnings, which will boost the gross margin as well as the general profit ratio as the enterprise will continue to benefit from economy of scale in manufacturing.

Maturity Stage: The product will now be developed during the maturity stage, and the manufacturer's goal will now be to maintain their market share.

Decline Stage: Ultimately, a commodity demand may continue to decrease, and this is known as the period of decrease.

3 0

4 years ago

Bethany is looking for a Mother’s Day gift for her mom and wants to purchase some type of perfume or cologne. She knows that her

juin [17]

Answer: A) limited decision making

Explanation:

When a customer is experiencing limited decision making, they are looking to make a choice that requires that they spend a decent amount of time doing some sort of research in order to make a decision.

The research time will not be quite extensive that it would require in-depth research, but it should be more than basic time spent on normal purchase decisions.

Bethany is willing to spend time to try the different scents so this is a limited decision making consumer decision.

6 0

4 years ago

Consider each of the following independent scenarios:a.Terrin Belson, plant manager for the laser printer factory of Compugear I

Angelina_Jolie [31]

Answer: a. Cost center b. Investment center. c. Revenue center d. Profit center. d. Investment center.

Explanation:

a. Cost center

We are informed that Terrin Belson, a plant manager for the laser printer factory of Compugear Inc., complained that two machines had broken down, and some factory production workers were idled for part of the month. He also complained that materials prices has and insurance premiums on the factory has increased and costs were going up.

The responsibility center involved here is the cost center. Everything he was complaining about was with regards to the rise on costs of running the company. Therefore, the cost center should be in charge.

b. Investment center

We are told that Joanna Pauly was delighted to see that her ROI figures had increased for the third straight year as she was sure that her campaign to lower costs and efficiently use of machinery was the reason for this.

This is the responsibility of the investment center. We can see that Joanna is talking about the increase in the return on investment. Therefore, the investment center should be responsible to handle this.

c. Revenue center

From the information, we are told that Gil Rodriguez, sales manager for ComputerWorks, was not pleased with a memo from headquarters detailing recent cost increases for the laser printer line. The headquarters suggested that increase in prices will kill sales and that the revenue will go down.

The responsibility center involved in this situation is the revenue center. We can see that the headquarters was concerned that the increase will in price will affect revenue as the revenue will reduce. This is the revenue center in charge.

d. Profit center

We are told that Susan Whitehorse looked at the quarterly profit and loss statement with disgust as the revenue was down, and the cost was up. The responsibility center in charge here is the profit center as the main issue of discussion is about the profit and loss of the company.

e. Investment center

We are told that Shonna Lowry had just been hired to improve the fortunes of the Southern Division of ABC Inc. and that after meeting with top staff, she gave out a 3-year plan to improve the situation as obsolete equipment will be retired and the state-of-the-art, computer-assisted machinery will be bought.

This is an investment because she told the firm to buy state-of-the-art, computer-assisted machinery will be bought in order to improve their fortunes. The responsibility center involved is the investment center.

6 0

3 years ago