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kompoz [17]
2 years ago
5

Brief Exercise 229 Iverson Company purchased a delivery truck for $45,000 on January 1, 2020. The truck was assigned an estimate

d useful life of 5 years and has a residual value of $10,000. Compute depreciation expense using the double-declining-balance method for the years 2020 and 2021.
Business
1 answer:
Fofino [41]2 years ago
7 0

Answer:

the  depreciation expense using the double-declining-balance method for the years 2020 and 2021 is $18,000 and $10,800 respectively

Explanation:

The computation of the depreciation expense using the double declining method for the year 2020 and 2021 is as follows:

For 2020

= (Cost) × depreciation rate

= $45,000 × 1 ÷ 5 × 2

= $18,000

For 2021

= ($45,000 - $18,000) × 0.40

= $10,800

hence, the  depreciation expense using the double-declining-balance method for the years 2020 and 2021 is $18,000 and $10,800 respectively

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In a Las Vegas casino, an employee discovered a flaw in the accounting system. The accounts payable clerk discovered that he was
kap26 [50]

Answer:

- This type of fraud is check tampering

- It amounts to 20.1% of fraud cases in small businesses, and 8.4% of fraud in large businesses

- This type of fraud can be prevented by rotating employees that handle check issuance to vendors, review of budget versus actual expenditure, monitoring of audit trail to see if beneficiary was changed, daily statement download for reconciliation, and restriction of functions for example a employee that issues checks should not also reconcile bank statement.

Explanation:

Check tampering is a very common fraud that involves changing the beneficiary of a valid check so that funds can be diverted.

In the given scenario the accounts payable clerk was able to change checks to his name in order to divert $10,000. This was only discovered by chance when an employee noticed the change in name.

Various internal control measures can be taken to prevent this and they are listed above

4 0
3 years ago
what might be the outcome of raising the fees and requiring more paper work in order to start a corperation? what would happen i
Pie
The outcome of raising fees and requiring more paper work to start a corporation would be that there would be less corporations and, the opposite would happen if fees were lowered and application possesses were simpler, hope this helps
8 0
3 years ago
Checking for quality and paying creditors would fall within which two functional​ areas?
horsena [70]
Checking for quality fall within MANUFACTURING AND PRODUCTION AREA while paying creditor fall within FINANCE AND ACCOUNTING AREA.
There are many functional areas in business, each functional area is responsible for performing specific functions.
3 0
3 years ago
The economy is in a recession and the government wants to increase output. If the multiplier equals 3 and the government increas
Anika [276]

Answer:

The correct answer is option D.

Explanation:

Because of recession the government wants to increase output.

The increase in government spending is equal to $250.

The size of the money multiplier is 3.

The increase in output will be

== government\ spending\ multiplier\times increase\ in\ spending

=250\ \times\ 3

=750

So, the correct answer is option D.

8 0
3 years ago
On December 31, Lowland, Inc., converts its $900,000 par value bonds (carrying value also $900,000) into 90,000 shares of $6 par
Alexeev081 [22]

Answer:

Lowland, Inc., entry to record this conversion includes a

Dr Bonds Payable $900,000

Cr Common Stock $540,000

( 90,000 shares x $6 par value per share)

Cr Paid-In Capital in Excess of Par Value $360,000

($900,000 -$540,000)

Explanation:

Since Lowland, Inc. converted its $900,000 par value bonds and carrying value also $900,000) into 90,000 shares of $6 par value common stock which means we have to Debit Bonds Payable with $900,000 and Credit Common Stock with $540,000 which is

( 90,000 shares x $6 par value per share) , then Credit Paid-In Capital in Excess of Par Value for $360,000 which is ( value of bonds converted of $900,000 - par value of shares of common stock issued of $540,000).

5 0
3 years ago
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