Which of the following could be considered collateral for a loan? (Select all that apply.)

Prine Company purchased equipment on January 1, 2018, for $ 25 comma 000. Suppose Prine Company sold the equipment for $ 3 com

Marat540 [252]

Answer:

a. The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale of the equipment:

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment $6,000

Credit Equipment $25,000

Explanation:

To recognize gain or loss on the sale of the equipment:

First, the company calculates the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges.

Then, subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain and if the remainder is negative, it is a loss

On December 31, 2019, the carrying amount of the asset = $25,000 - $16,000 = $9,000

Sale price - Carrying amount of the asset = $3,000 - $9,000 = -$6,000

=> The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale should be made:

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment $6,000

Credit Equipment $25,000

4 0

3 years ago

an economy where more money is being collected than is being allocated or spent is known as what type of economic stance

nlexa [21]

It is known as Contractionary.

4 0

3 years ago

Read 2 more answers

On January 1, JC Co. accepted a 60-day, 6%, note in the amount of $10,000 from a customer. On March 2, the due date of the note,

sammy [17]

Answer:

Cash account in the amount of $10,100

Explanation:

The journal entry to be recorded for the receipt of payment is as:

Cash A/c.............................................Dr $10,100

Note receivable A/c...................Cr $10,000

Interest Revenue A/c..................Cr $100

Being recoded the receipt of payment

As payment is received so asset is increasing and any increase in asset is debited. Therefore, cash account is debited. And the note receivable got decrease will be credited and the interest revenue is also credited.

Computation of interest revenue is as:

Interest revenue = Amount × % of note × Days / Number of days in a year

= $10,000 × 6% × 60 / 360

= $100

Note: Assume 360 days in a year

3 0

3 years ago

Governments would decrease government expenditures to fight a/an ______________ gap. Due to this change in G, the budget balance

dlinn [17]

Governments would decrease government expenditures to fight an inflationary gap and due to this change in G, the budget balance (BB) would reduce.

<h3>What is budget?</h3>

It should be noted that a budget simply shows the revenue and expenditure for a period of time.

In this case, governments would decrease government expenditures to fight an inflationary gap and due to this change in G, the budget balance would reduce.

Learn more about budget on:

brainly.com/question/6663636

#SPJ1

4 0

2 years ago

Peter, the owner of Happy Burger, is involved in the company's daily decisions and has established procedures for every task. Th

ohaa [14]

Answer:

mechanistic

Explanation:

Mechanistic organization is the organization that is hierarchical and bureaucratic

It is characterized by its;

Highly centralized authority.
Formalized procedures and practices.
Specialized functions.

Mechanistic organizations work well in stable, simple environments. Managers integrate the activities of clearly defined departments through formal channels and in formal meetings. Often, they feature many hierarchical layers and a focus on reporting relationships.

6 0

3 years ago