Even when special journals are used, closing journal entries are recorded in the general journal. True False

The balance in the equipment account is $4,900,000, and the balance in the accumulated depreciation—equipment account is $2,646,

iren [92.7K]

Answer:

A) Book value= $2254000

B) Yes, it is the theoretical loss on value due to use.

Explanation:

Giving the following information:

The balance in the equipment account is $4,900,000

Balance in the accumulated depreciation= $2,646,000

A) Book value= purchase price - book value= 4900000-2646000= $2254000

B) Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. Through depreciation, a business will expense a portion of a capital asset's value over each year of its useful life. This means that each year, a capitalized asset is put to use and generates revenue, the cost associated with using up the asset is recorded. Accounting estimates the decrease in value using the information regarding the useful life of the asset.

7 0

4 years ago

Kinnamont Company manufactures farming equipment that includes navigational systems as part of the standard equipment package an

mario62 [17]

Answer: Option B

Explanation:

The contract between Kinnamont and Smith covers two obligations that needs to be performed one is to provide a navigational system and other is training. Both the obligations needs to be provided together as a combine. The accounting for the contract which has multiple performance obligations should allocate transaction pricing separately for each obligation that needs to be performed.

So the transaction pricing in this scenario has to be allocated for navigational system and training separately. The price is not split between the obligations but the price has to be measured based on the work done.

4 0

4 years ago

Between October 2014 and October 2015, the CPI in Canada rose from 120 to 124 and the CPI in Mexico rose from 210 to 229.1. What

Elenna [48]

Answer:

Inflation rates for Canada = 3.3%

Inflation rates for Mexico = 9.1%

Explanation:

Data provided in the question:

For Canada

CPI in 2014 = 120

CPI in 2015 = 124

For Mexico

CPI in 2014 = 210

CPI in 2015 = 229.1

Now,

The inflation = [( Current CPI - Base year CPI) ÷ Base year CPI ] × 100%

Therefore,

For Canada

Inflation = [ (124 - 120 ) ÷ 120 ] × 100%

= 3.3%

For Mexico

Inflation = [ (229.1 - 210 ) ÷ 210 ] × 100%

= 9.1%

8 0

4 years ago

Which type of service specializes in providing advisory services to clients instead of the traditional transaction-based, commis

pickupchik [31]

In regards to providing advisory services as opposed to providing transaction-based, this would be considered consultant servicing. This is due to the fact that there is an ongoing consultation occurring between the servicer and the client at hand, rather than single, one-off transactions.

3 0

3 years ago

Final Exam

Lyrx [107]

I may be wrong but I believe it was copper that’s why some america coins are still made out of it today

4 0

3 years ago