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yulyashka [42]
3 years ago
12

A company purchased a van at a cost of $42,000 and expects it can be sold for $6,000 after 120,000 miles of service. Assuming th

e units-of-production method is used and the van is driven for 24,000 miles during the first year, the depreciation at the end of the first year would be
Business
1 answer:
scoray [572]3 years ago
8 0

Answer:

Annual depreciation= $7,200

Explanation:

Giving the following information:

A company purchased a van for $42,000 and expects it can be sold for $6,000 after 120,000 miles of service.

<u>To calculate the annual depreciation, we need to use the following formula:</u>

Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles driven

<u>For 24,000 miles:</u>

<u></u>

Annual depreciation= [(42,000 - 6,000) / 120,000]*24,000

Annual depreciation= 0.3*24,000

Annual depreciation= $7,200

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On July 1m 2017, Ling Co. pays $12,400 to Marsh Insurance Co., for a 2-year insurance contract. Both companies have fiscal years
Ronch [10]

Answer:

Journal entries

Explanation:

The journal entries are as follows

On July 1

Prepaid insurance Dr $12,400

     To Cash $12,400

(Being the payment is recorded)

On December 31

Insurance expense Dr $3,100

    To Prepaid insurance $3,100

(Being the insurance expense is recorded)

It is computed below:

= $12,400 × 6 months ÷ 24 months

= $3,100

6 0
3 years ago
Strickland Company owes $202,900 plus $18,600 of accrued interest to Moran State Bank. The debt is a 10-year, 10% note. During 2
Vesnalui [34]

Answer:

a.                     Strickland Company (Debtor)

Date  Account Title and Calculation                   Debit         Credit

          Notes payable                                          $202,900

          Interest payable                                        $18,600

          Accumulated depreciation (Machine)      $218,689

                    Machine                                                             $397,600

                    Gain on disposition of machine                        $7,080

                     (186,000 + 397,000 - 218,680)

                    Gain on debt restructuring                                 $35,500

                    [(202,900 + 18,600) - 186,000]

                       Moran State Bank (Creditor)

Date  Account Title and Calculation          Debit         Credit

         Machine                                             $186,000

         Allowance for Doubtful accounts     $35,000

                Notes receivable                                           $202,900

                 Interest receivable                                        $18,600

b. Gain on machine disposition and the gain on debt restructuring should be reported as an ordinary gain in the income statement.

c.                      Strickland Company (Debtor)

Date  Account Title and explanation         Debit         Credit

         Notes payable                                   $202,900

         Interest payable                                 $18,600

                  Common stock                                             $112,000

                   Additional paid-in-capital                            $74,000

                   Gain on debt restructuring                          $35,500

                       Moran State Bank (Creditor)

Date  Account Title and explanation             Debit         Credit

          Investment Trading                             $186,000

           Allowance for Doubtful accounts      $35,500

                     Notes receivable                                          $202,900

                     Interest receivable                                        $18,600

7 0
3 years ago
If jorge produces 20 pounds of green beans, he can produce _______ pounds of corn
aniked [119]

If jorge produces 20 pounds of green beans, he can produce  <u>240 </u>pounds of corn.

<h3 /><h3> Production Possibilities Schedule</h3>

Based on the  Production Possibilities Schedule table given pound of green beans is 20 while pounds of corn is 240.

Based on this if he produces 20 pounds of green beans he can as well produce 240 pounds of corn.

Jorge's Production Possibilities Schedule

Pounds of Green       Beans Pounds of Corn

20                                 240

Therefore If jorge produces 20 pounds of green beans, he can produce  <u>240 </u>pounds of corn.

Learn more about  Production Possibilities Schedule here:brainly.com/question/26492942

#SPJ12

6 0
1 year ago
Ginny, a licensee, uses a preprinted contract in Tim's purchase of a new loft apartment. There is a discrepancy in the contract
777dan777 [17]

Answer:

The handwritten clause generally supersedes the preprinted clause.

Explanation:

5 0
2 years ago
Net sales$688,500 $450,000 Cost of goods sold 337,364 133,200 Determine the 2016 and 2017 trend percents for net sales using 201
alisha [4.7K]

Answer:

Trend- % change in sales =  34.64%

Explanation:

<em>Trend analysis entails determining the performance of a business over time by comparing its performance data from one period to another. The aim of trend analysis is to identify the behavior of a set of ratios over a period of time by comparing them across different years.</em>

To determine the trend for a particular data, we use the formula below

% Change in variable =

(Current year figure - Previous year figure)/Previous year figure × 100

DATA

Current year figure  for sales (2017) - 450,000

Previous year figure for sale (2016) - 688,500

% change in sales =   (450,000 -688,500)/688,500 × 100 = 34.64%

% change in sales =  34.64%

This implies that the company made sales in 2017 which is 34.64% less than that made in 2016

5 0
2 years ago
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