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posledela
2 years ago
5

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acqu

ired at the beginning of 2018 for $2,720,000. Its useful life was estimated to be six years with a $200,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method.
The effect of this change on depreciation for each year is as follows:

Year Straight-Line Declining Balance Difference
2018 $400 $853 $453
2019 400 569 169
2020 400 379 (21)
$1,200 $1,801 $601

Required:
Prepare any 2021 journal entry related to the change. (If no entry is required for a particular event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Business
1 answer:
prohojiy [21]2 years ago
5 0

Answer: Please see below for answers

Explanation:

Year Straight-Line Declining Balance Difference  (000s)

2018       $400          $853                     $453  

2019        400             569                        169  

2020        400             379                        (21)  

               $1,200        $1,801                    $601

Asset cost =$2,720,000

Accumulated depreciation till 2020= $1,801,000

Book value beginning of 2021=$919,000

Residual value=                         -$200,000

Depreciable value=                    $719,000

Remaining estimated life= 6-3years=3

Annual straight line depreciation=    $719,000 /3 = $239,667

rounded dollar= $240,000

2021 journal entry

Adjusting entry                     Debit                   Credit  

Depreciation expense     $240,000

Accumulated depreciation                               $240,000

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Moretti Department Store sells gift cards that expire three years from the date of purchase. During 2019, Moretti sold $50,000 o
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Answer:

$64,300

Explanation:

The amount of revenue that Moretti Department store should recognize as revenue in 2021 should be based on the redeemed amount in the year and unused balance:

1. $1,500 were redeemed during 2021

2. $800 2019 balance remains unused

3. $22,000 were redeemed in 2021

4. $40,000 were redeemed in 2021

Total Revenue for 2021 = $64,300

8 0
2 years ago
On January 1, 2021, Jalen Company purchased land costing $800,000. Instead of paying cash at the time of purchase, Jalen plans t
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Answer:Jalen journal $

Date

Jan 1 ,2021

Land Dr. 860,887

Note payable Cr. 860,887

Narration. Issuance of note of above amount payable in four installment for purchase of land.

June 30,2021

Note payable Dr 215,221.64

Cash Cr. 215,221.64

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December 31,2021

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2. Balance on note payable as at December 31, 2021 $400,000

Balance on Interest expenses $30,443.28

Explanation:

The land account is debited to recognized it's purchase and a credit is made to the notes payable account to recognise the credit.

The total installment is debited for payment made in the first and second period.

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6 0
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Which of the following reports is an example of an analytical report? a. A report outlining the new company procedure for report
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Answer:

(C) A report recommending an anti-terrorism security system for mass transit

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An analytical report is a type of a business report that uses qualitative and quantitative company data to analyze as well as evaluate a business strategy or process, while empowering employees to make data-driven decisions based on evidence and analytics. Analytical reports offers both information and analysis and also include recommendations.

6 0
2 years ago
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5 0
2 years ago
$1,000 par value zero-coupon bonds (ignore liquidity premiums).
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10.70% - Option D

<u>Explanation:</u>

One-year interest rate one year from now:

=(1+.2750)^{\wedge} 2 /(1+16 \%)-1

=1.275 * 1.275 / 0.16

= 1.625625 divide by 0.16

=10.160

Therefore, an approximate answer is 10.70%

Respect Maturity (YTM) – in any case alluded to as recovery or book yield – is the theoretical pace of return or loan cost of a fixed-rate security, for example, a security. The YTM depends on the conviction or understanding that a financial specialist buys the security at the present market cost and holds it until the security has developed (arrived at its full worth), and that all premium and coupon installments are made in a convenient manner.

7 0
2 years ago
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