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3 years ago

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Abbott Landscaping purchased a tractor at a cost of $30,000 and sold it three years later for $16,200. Abbott recorded depreciat

ion using the straight-line method, a five-year service life, and a $4,000 residual value. Tractors are included in the Equipment account.
Assume the tractor was sold for $12,400 instead of $19,800. Record the sale.

1 answer:

Viefleur [7K]3 years ago

3 0

Answer:

Debit Credit

Cash $16,200

Accumulated depreciation-equipment $15,600

Gain on sale of equipment 1,800

Equipment 30,000

(To record sale of equipment)

Explanation:

According to the given data we have the following:

Equipment=$30,000

Cash=$16,200

Therefore,The accumulated depreciation would be=($30,000-4,000)/5*3

The accumulated depreciation would be=$15,600

Therefore, the sale to record would be as follows:

Debit Credit

Cash $16,200

Accumulated depreciation-equipment $15,600

Gain on sale of equipment 1,800

Equipment 30,000

(To record sale of equipment)

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Answer:

<u>Part 1</u> There will be a disadvantage for 30,000 as there are allocated cost into product X

<u>Part 2 </u>TRUE

As performing the order will not renounce to selling in the local market. When the order comiptes with the normal capacity(there is no idlbe capacity to use) it will have as opportunity cost the contribution if sold in the local market.

Explanation:

$\left[\begin{array}{cccc} &$Current&$Discontinued&$Differential\\$Revenues&400,000&&-400,000\\$variables&-320,000&&320,000\\$Contribution&80,000&&-80,000\\$avoidable fixed cost&-50,000&&50,000\\$allocate fixed&-70,000&-70,000&\\$Result&-40,000&-70,000&-30,000\\\end{array}\right]$

Revenue 10,000 x 40 = 400,000

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3 years ago

Which of the following actions puts you at risk for dumpster diving? A. Not shredding financial documents when you’re done with

Lelechka [254]

<span>Failure to shred financial documents, as given in option A, puts you at risk for dumpster diving. If financial documents are not shredded, then it is possible for bad actors going through your trash to recover personal and confidential information which can be used for various kinds of fraud and theft.</span>

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4 years ago

Turnkey systems, inc. began the month of june, 2014 with a prepaid expenses balance of $240,000. during the month, debits totali

fomenos

The ending balance of prepaid expense can be calculated using the following formula:

Ending balance = Beginning Balance + Debit entries – Credit Entries

We are given the following information:

Beginning Balance = $240,000

Total Debit entries = $110,000

Total Credit entries = $80,000

Hence,

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3 years ago

In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant

dem82 [27]

Answer:

$149,000

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Computation for the relevant costs of producing 2,400 units of product PQ107 internally

Using this formula

Relevant Costs = Incremental Costs = Incremental Variable Costs + Incremental

Let plug in the formula

Relevant Costs = [(2,400 units × $31/unit) + (2,400 units × $19/unit) + (2,400 units × $8/unit)] + $9,800

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Relevant Cost =$149,000

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3 years ago

If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield t

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Answer:

FIFO

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FIFO inventory system means the first purchased inventory are the first to be sold.

The LIFO inventory system means the last purchased inventory are the first to be sold.

The average cost inventory system means that the average cost of inventories are used as the cost of the goods sold.

For example, if a business has a beginning inventory of 5 biros at $2 each. On the first of December, the business purchased 10 pens at $2.50. On the 10th, 5 pens were purchased at $3. 15 pens are sold at $5 each. If the FIFO inventory system is used, the cost of goods sold would be = (5×$2)+(10×$2.50) = $35

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If the LIFO inventory system is used, the cost of goods sold =(10 × $2.50) + (5×$3) = $40

Net profit = $35

The net profit is higher using the FIFO method.

I hope my answer helps you

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3 years ago