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RideAnS [48]
2 years ago
14

A company purchased factory equipment on April 1, 2021 for $175000. It is estimated that the equipment will have a $25000 salvag

e value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021 is $17500. $11250. $13125. $15000.
Business
1 answer:
bija089 [108]2 years ago
3 0

Answer:

b. $11250

Explanation:

Capitalized Cost of Equipment = $175,000

Life of Assets = 10 years

Residual value = $25,000

Depreciable value = Cost - Salvage value

Depreciable value = $175,000 - $25,000

Depreciable value = $150,000

Depreciation per year = Depreciable value / Life of assets

Depreciation per year = $150,000/10 years

Depreciation per year = $15,000

Depreciation from April to December 2021 = $15,000*9/12

Depreciation from April to December 2021 = $11,250

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Select which of the ways that entrepreneurs improve the economy is being described:
Ugo [173]

Answer:

Select which of the ways that entrepreneurs improve the economy is being described:  As a family's basic needs are met, jobs are given to the people who help provide these needs.

new business

Explanation:

Entrepreneur improves the economy by starting a new business, they are employer of labor and improves the economy

7 0
2 years ago
You currently own 100 shares of stock in Beverly Brothers Inc. The stock currently trades at $120 a share. The company is contem
Gwar [14]

Answer:

No option is correct, since you will have 200 shares and each share should be worth around $60.

Explanation:

If the 2-for-1 stock split takes place then you will have 200 shares instead of 100. For every 1 share that you currently own, the corporation will issue another share.

Since the price of the shares was $120 before the stock split, after the stock split the price will be divided by two (the same proportion). So each new share will cost approximately $60.

In order for option 2 to be correct, the stock spit should have been 3-for-1.

8 0
3 years ago
The trial balance of Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjus
almond37 [142]

Answer:

The account wise answers are given below

Explanation:

a) Account receivable are adjusted for any doubtful debts and uncollectible accounts from customers.

In this account, the adjusting entry we make as follows

Bad debt Expense        Dr.$$

Provision for Bad debts  Cr. $$

When it is certain that customer will no longer pay the specified amount, the write off entry is made as follows

Provision for Bad Debts    Dr. $$

Accounts Receivable        Cr. $$

b)Prepaid Insurance

It is adjusted when the period for it is paid in advance has lapsed or expired then expense is recorded and prepaid insurance is reduced

The adjusting entry is made as follows,

Insurance Expense   Dr.$$

Prepaid Insurance    Cr.$$

c) & d) Equipment & Accumulated Depreciation

The Assets are adjusted over their useful life for depreciation. When an asset is used during whole year, its cost is reduced and that reduction is recorded as deprecation expense and accumulated depreciation.

The Adjusting Entry is made

Depreciation Expense      Dr. $$

Accumulated Depreciation  Cr. $$

When asset is sold the adjusting entry is made,

Accumulated Depreciation Dr. $$

Asset-Equipment                    Cr. $$

e)Notes Payable & f) Interest payable

These are liabilities. When any expense is accrued and any interest is payable but not paid on loan received is recoded is liability.

The adjusting entry is made,

Interest Expense/Notes Expense   Dr.$$

Interest Payable or Notes Payable  Cr.$$

g) Unearned Service Reveune

It is liability in nature when services are not rendered but amount for those services is paid in advance then its called unearned service revenue.

When those services are actually rendered to customers, the adjusting entry is made,

Unearned Service revenue Dr. $$

Service revenue                    Cr. $$

7 0
3 years ago
Under the allowance method of accounting for uncollectible accounts, a. the cash realizable value of accounts receivable is grea
pentagon [3]

Answer:

c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off.

Explanation:

Under the allowance method of accounting for uncollectible accounts, the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off and bad debt expenses is debited.

This means that in the period in which an account previously written off is collected, the income is unaffected.

Also, under the allowance method of accounting, total assets will remain unchanged when a particular account is being written off.

8 0
3 years ago
Which of the following observations is true?
Strike441 [17]

Answer:

Which of the following observations is true?

d. In the long run, more costs become variable.

Explanation:

The long run is a period of time in which all factors of production and costs are variable.

5 0
3 years ago
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