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Andru [333]
2 years ago
6

The entity’s manufacturing division, whose assets constituted 75% of its total assets at September 30, Year 5 (end of year), was

sold on November 1, Year 5. The new owner assumed the bonded indebtedness associated with this property. How should this event be presented in the financial statements?
Business
1 answer:
belka [17]2 years ago
5 0

The event should be presented in the financial statements as follows:

1. The assets side of the balance sheet will be reduced by 75%, with its accompanying accumulated depreciation.

2. The bonded liability on the balance sheet is eliminated by the relevant amount.

3. The journal entry should debit the Bonded Liability and accumulated depreciation, while the assets worth 75% are credited.

4. If the bonded indebtedness is more than 75% of the assets, the company records a profit on disposal on the income statement. Otherwise, it records a loss. If they are equal, there is no profit or loss.

Thus, the difference between the debit and credit entries constitutes either profit or loss on disposal.

Learn more: brainly.com/question/17329408

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If you know how to think critically and have excellent problem solving skills, you are said to have strong
Ugo [173]

Answer:

B

Explanation:

its right

7 0
3 years ago
Which spreadsheet type will determine how well a business has done over the past year?
masha68 [24]
<span>profit-and-loss statement</span>
6 0
3 years ago
The net income reported on the income statement for the current year was $295,000. Depreciation recorded on fixed assets and amo
maksim [4K]

Answer:

The Net cash is 302.000

Explanation:

To get net cash flow using the indirect method we must make adjustments to the net income.

With the balance data,  we get the decrease or increase of the differents accounts.  

End Beginning Cash $ 50,000 $ 60,000  

Decrease in cash  -10000

Accounts receivable 112,000 108,000

Increase in accounts receivable 4000

Inventories 105,000 93,000

inventory increased 12000

Prepaid expenses 4,500 6,500

decreased Prepaid expenses -2000

Accounts payable (merchandise creditors) 75,000 89,000

accounts payable decreased -14000

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Net income 295.000

Adjustment to reconcile the net income to cash

+ Depreciation expense 40.000

+ amortization of patents 5.000

- Decrease in cash (10.000)

- Increase in accounts receivable (4.000)

- inventory increased (12.000)

+  decreased Prepaid expenses  2.000

- accounts payable decreased (14.000)

 

Net cash 302.000

8 0
3 years ago
8. The TS Company has budgeted sales for the year as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales in units 10,000 12,0
Finger [1]

Answer:

Results are below.

Explanation:

<u>First, we need to determine the production budget using the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

Quarter 1:

Production= 10,000 + (0.25*12,000) - 2,500

Production= 10,500

Quarter 2:

Production= 12,000 + (0.25*14,000) - 3,000

Production= 12,500

Quarter 3:

Production= 14,000 + (0.25*16,000) - 3,500

Production= 14,500

Quarter 4:

Production= 16,000 - 4,000

Production= 12,000

<u>Now, the direct material purchase budget:</u>

Purchases= production + desired ending inventory - beginning inventory

Quarter 1:

Purchase= 10,500*4 + (12,500*0.1) - 4,200

Purchase= 39,050 pounds

Quarter 2:

Purchase= 12,500*4 + (14,500*0.1) - 1,250

Purchase= 50,200 pounds

Quarter 3:

Purchase= 14,500*4 + (12,000*0.1) - 1,450

Purchase= 57,750 pounds

Quarter 4:

Purchase= 12,000*4 - 1,200

Purchase= 46,800 pounds

3 0
2 years ago
How do you wrrite the word pneumonoultramicroscopicsilicovolcanoconiosi aand what does it mean?
mel-nik [20]

Answer:

Pneumonoultramicroscopicsilicovolcanoconiosis

Explanation:

Pneumonoultramicroscopicsilicovolcanoconiosis is a phrase used to describe a lung condition produced by inhaling silica dust, as in I had difficulty breathing and my doctor diagnosed me with pneumonoultramicroscopicsilicovolcanoconiosis.

3 0
3 years ago
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