Proprietary and fiduciary funds follow account and reporting principles similar to those of _____

Carla Corporation owns machinery that cost $24,800 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $

liberstina [14]

Answer:

a. Journal entries to update depreciation for 2021:

Debit Depreciation expense $1,984

Credit Accumulated depreciation account $1,984

b. Journal entries to record the sale:

Debit Cash $13,020

Debit Accumulated depreciation account $12,400

Credit Gain on asset disposal $620

Credit Machinery asset $24,800

Explanation:

a. Depreciation of the machinery has been recorded at a rate of $2,976 per year.

Depreciation per month = $2,976/12 = $248. In 2021, the machinery is used from Jan 1 to August 31 (8 months).

Depreciation expense for 2021 = $248 x 8 = $1,984

Journal entries to update depreciation for 2021:

Debit Depreciation expense $1,984

Credit Accumulated depreciation account $1,984

b.

Accumulated depreciation account at December 31, 2020 has credit balance of $12,400 ($10,416 + $1,984 = $12,400)

The carrying amount of the machinery = Cost of the machinery - Accumulated depreciation = $24,800 - $12,400 = $12,400

Sales price - Carrying amount of the machinery = $13,020 - $12,400 = $620>0

The company recognizes gain on the sale. Journal entries to record the sale:

Debit Cash $13,020

Debit Accumulated depreciation account $12,400

Credit Gain on asset disposal $620

Credit Machinery asset $24,800

8 0

3 years ago

a local pizza parlor is selling two different shapes of cheese pizza for the same price. You can get two small square pizza that

Mamont248 [21]

Answer:

The large round pizza with a 14 inch diameter

Explanation:

We can see this as a simple geometry problem. Which is the largest area? Two squares of 8 inches side or a 14 inch diameter circle? Let's see. The area of the square is side * side, in this case 8 * 8, so we have 64 squared inches in each of the two pizzas. That makes a total of 128 squared inches (64 + 64) for the two small squared pizzas. Now to calculate the circle, we must do the following formula: $\pi *r^{2}$ where r is the radium of the circle. The radium is half of the diameter, in this case 14/2=7. So the formula is 7^2, that is to say 49, multiplied by pi. This gives us approximately 153.93 squared inches, which is bigger than 128. A large round pizza with 14 inches of diameter gives more pizza.

We can also think that most people don't like the crust of the pizza. Two pizzas have more crust than one. So one pizza, besides being bigger, can save you to eat the crust and more cheese and sauce.

5 0

3 years ago

What best explains why any determination of cost must go beyond counting the money involved ?

Hitman42 [59]

A process Of maximizing benefits Or minimizing costs.

3 0

3 years ago

Read 2 more answers

Suppose a company purchased land and a building for $20,000,000 cash. The appraised value of the building was $17,000,000, and t

sladkih [1.3K]

Answer:

The amount of the purchase price will be allocated to the Land account is $6,400,000

Explanation:

For computing the purchase price of the land, first we have to compute the weightage of both the fixed assets which are shown below:

For building = Appraised value of building ÷ total value of fixed assets '

= $17,000,000 ÷ $25,000,000

= 68%

where,

Total value of fixed assets = Appraised value of the building + appraised value of the land

= $17,000,000 + $8,000,000

= $25,000,000

For land = Appraised value of land ÷ total value of fixed assets '

= $8,000,000 ÷ $25,000,000

= 32%

So, the purchase price of the land equal to

= Total purchase price of fixed assets × weightage of land

= $20,000,000 × 32%

= $6,400,000

6 0

3 years ago

What will maximize the amount of interest you earn ?

Solnce55 [7]

Alright bud so basically what maximizes the amount of interest you can make would be a high interest rate along with a long period of time

3 0

3 years ago

Proprietary and fiduciary funds follow account and reporting principles similar to those of ______ organizations.