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2 years ago

During 2019, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business:

Business

1 answer:

Sladkaya [172]2 years ago

8 0

Answer:

Depreciation Expense for 2019 using form 4562

Basis For depreciation; Recovery Period ; Convention ; Method ; Depreciation deduction

2,000 ; 5 years ; HY ; 200 DB ; 400

40,000 ; 7 years ; HY ; 200 DB ; 6,573

Explanation:

Accelerated method of depreciation is used by businesses for accounting and income tax purposes. The depreciation is calculated in such a way that the depreciation expense is higher in early years and lower in later years. Pepe is also using this method to account for his business assets. The depreciation expense for computer equipment and manufacturing equipment's totals $6,973.

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DS Unlimited has the following transactions during August. August 6 Purchases 84 handheld game devices on account from GamerGirl

damaskus [11]

Answer:

Explanation:

The journal entries are shown below:

On August 6

Merchandise Inventory A/c Dr $22,680 (84 handheld games × $270)

To Account payable A/c $22,680

(Being the inventory purchased is recorded)

On August 7

Merchandise Inventory A/c Dr $470

To Cash A/c $470

(Being the freight cost is paid)

On August 10

Account payable A/c $2,430 (9 handheld games × $270)

To Merchandise inventory A/c $2,430

(Being the goods are returned)

On August 14

Account payable A/c Dr $20,250 ($22,680 - $2,430)

To Merchandise Inventory A/c $405 ($20,250 × 2%)

To Cash A/c $19,845

(Being the amount due is paid)

On August 23

Accounts Receivable A/c Dr $18,560 (64 handheld games × $290)

To Sales revenue A/c $18,560

(Being the sales on credit basis is recorded)

Cost of goods sold A/c Dr $17,335

To Merchandise Inventory A/c $17,335

(Being the total cost is recorded)

7 0

2 years ago

Great Western Southern purchased $525,000 of equipment four years ago. The equipment is seven-year MACRS property. The firm is s

tester [92]

Answer: $153,782.70

Explanation:

The MACRS allowance percentages are as follows, commencing with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.

In 4 years, the depreciation would be:

= Cost price * (4 year deprecation)

= 525,000 * (14.29% + 24.49% + 17.49% + 12.49%)

= $360,990

Book value :

= 525,000 - 360,990

= $164,010

Gain (loss) = Sale price - Book value

= 150,000 - 164,010

= ($14,010)

Tax payable = (14,010) * 27%

= ($3,782.70)

After-tax cash flow:

= Selling price - Taxes

= 150,000 - (-3,782.70)

= $153,782.70

<em>Note: If there are options, beware of rounding errors and pick nearest option. </em>

6 0

2 years ago

All of the following represent cash outflows to the firm excepta. Taxes.b. Interest payments.c. Dividends.d. Purchase of plant a

Sergio039 [100]

All of the following represent cash outflows except E; Depreciation.

Further Explanation:

Cash outflows to a firm/business is how much cash for the business is available after taxes and capital are paid for. Interest payments, dividends and the purchase of equipment for the plant is considered into the cash flows.

Depreciation will not be part of the cash flow. This is considered to be a non-cash expense to the business/firm. This is an ongoing charge to the fixed assets of the business. This actually reduces the cash flow by reducing the monies paid for income taxes.

Learn more about depreciation at brainly.com/question/9862781

#LearnwithBrainly

7 0

2 years ago

For the next 2 questions, use the financials of Acme Corporation. After adjusting revenue for accounts receivable and deferred r

Mekhanik [1.2K]

Answer: B. $892.1 million

Explanation:

The Revenue was $939,393 million

When calculating how much cash was generated any increase to the Accounts Receivables is removed from the revenue because it signifies that more sales were made on credit and so have not given the business cash yet.

Any increase in Deferred Revenue must be added because this is Cash that has been given to the business but for accrual purposes cannot be recognized yet. Bottomline however, the Cash has been received.

Increase in Receivables = 309,196 - 221,504

= $87,692 million

Increase in Deferred Revenue= 374,730 - 334,358

= $40,372 million

The Cash generated is therefore;

= 939,393 - 87,692 + 40,372

= $892,073

= $892.1 million

I have attached the Financial Statements of Acme Corporation.

6 0

2 years ago

Suki's salary is $1,200 per month. What is her yearly salary?

nirvana33 [79]

12000*12= 14400 for a year

7 0

2 years ago

Read 2 more answers