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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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Answer:

Optimization

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2 years ago
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Lakeside Manufacturing provided the following information for the month ended March​ 31:Sales Revenue​$26,000Beginning Finished
solmaris [256]

Answer:

cost of goods available for sale= $29,100

Explanation:

Giving the following information:

Sales Revenue​$26,000

Beginning Finished Goods Inventory​8,000

Ending Finished Goods Inventory​13,500

Cost of Goods Manufactured​15,600

cost of goods available for sale= beginning finished goods inventory + purchases

We have to find the amount of purchases.

We know that:

cost of goods manufactured= Beginning Finished Goods Inventory​ + purchases - Ending Finished Goods Inventory​

15600= 8000 + purchases - 13500

purchases= 15600 - 8000 + 13500

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5 0
3 years ago
Kleister Company issues bonds for $100 million and repays a long-term notes payable of $10 million. The company also sells its o
antoniya [11.8K]

Answer:

$97 million cash inflow from financing activities.

Explanation:

Given: Company issue bonds for $100 million

           Repay long term notes payable is $10 million.

           Company sell its own shares= $12 million

           Pay cash dividend= $5 million.

Now, lets calculate the cash inflow from financing activities (CFF)

∴ Formula; Cash inflow from financing activities= \textrm{cash inflow from issuing equity or debt -(cash paid as dividend +repurchase of debt and equity)}

Cash inflow are the item through which cash is flowing in the company.

∴ cash inflow= (\textrm{(cash inflow issuance of bonds and selling own shares)}

Cash inflow= (100+12)= \$ 112\ million

Cash inflow from financing activities= 112-(10+5)= 112-15

Cash inflow from financing activities is $97 million

6 0
3 years ago
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