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WITCHER [35]
2 years ago
11

Equipment that cost $420,000 and on which $200,000 of accumulated depreciation has been recorded was disposed of for $180,000 ca

sh. the entry to record this event would include a
Business
1 answer:
NeTakaya2 years ago
3 0
The entry to record this event would include a  LOSS OF $40,000.
The equipment original cost = $420,000
Accumulated depreciation = $200,000
Selling price = $180,000
 Loss = 180,000 - [420,000 - 200,000] 
= 180,000 - 220 = - 40,000
Thus, a loss of $40,000 was experienced in the sale of the equipment.
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During a presidential campaign, the incumbent argues that he should be reelected because nominal GDP grew by 12 percent during h
zavuch27 [327]

Answer:

The correct answer is "grew,but by less than 12%"

Explanation:

  • Since GDP grew by 12% but at the same time population also increase by 4% so the overall increase will be less than 12% to calculate the exact amount on percentage increase in GDP more data is needed.
4 0
2 years ago
On June 30, a company provides $900 of services to customers on account. It usually takes the company one week to mail bills to
pav-90 [236]

Answer:

b. Debit Accounts Receivable $900, Credit Service Revenue $900

Explanation:

In this scenario, services was performed; invoice was issued. Thus revenue must be recorded in June, though customer has not paid yet

a. Debit Accounts Receivable $900, Credit Deferred Revenue $900

False, because Deferred Revenue is about the revenues received in advance for services which have not yet been performed or goods which have not yet been delivered.

b. Debit Accounts Receivable $900, Credit Service Revenue $900

True, because revenue was recorded but customer has not paid yet.

c. Debit Cash $900, Credit Deferred Revenue $900

False, because customer has not paid yet

d. Debit Cash $900, Credit Service Revenue $900

False, because customer has not paid yet

4 0
2 years ago
Bonita Company has a factory machine with a book value of $87,800 and a remaining useful life of 5 years. It can be sold for $32
qwelly [4]

Answer: Old machine should be replaced.

Explanation:

The variable manufacturing cost will reduce by:

= 624,000 - 524,000

= $100,000

Over a period of 5 years this will be:

= 100,000 * 5

= $500,000

Selling the old machine would bring in $32,000:

= 500,000 + 32,000

= $532,000

The cost of the new machine would reduce this gross benefit by:

= 532,000 - 455,100

= $76,900

<em>Net income will increase by a total of $76,900 over the 5 year period if the new machine is bought so it should be bought. </em>

4 0
1 year ago
Portions of the financial statements for Software Associates are provided below. SOFTWARE ASSOCIATES Income Statement For the ye
charle [14.2K]

Answer:

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $78,000

Adjustment made:

Add : Depreciation expense $33,000

Add: Decrease in accounts receivable $10,000

Add: Decrease in inventory $13,000

Add: Increase in accounts payable $7,000

Less: Decrease in salaries payable -$4,000

Add: Increase in income tax payable $8,000

Less: Increase in prepaid rent -$3,000

Total of Adjustments $64,000

Net Cash flow from Operating activities                   $142,000

7 0
2 years ago
Suppose John has a budget of $82 that he spends on ice cream sundaes (Q1) and coffee (Q2). The price of ice cream sundaes recent
ANEK [815]

Answer:

The answer is 9 ice cream sundaes.

Explanation:

The answer to how many ice cream sundaes that John's budget of $82 is constrained to based on the following data

New Price of Ice cream sundaes (Q1) = $6

New Price of Coffee (Q2) = $4

can be calculated thus

since, 7 coffee was bought for $4 dollars each

7x4 = $28

The remaining funds is now

82-28 = $56

therefore,

$56/$6 = 9 Ice cream sundaes

4 0
2 years ago
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