New equip ment: List price Cash price without trade in Cash payment with trade in 1,600,000 1,400,000 980,000 Required: repare journal entry to record the exchange transaction.
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- How much should be recorded as the purchase price of theindividual PPE items: For items 18 to 22, identify the amount to be included asEquipment 18. Payment for injuries to third‐parties not covered byinsurance – P200,00019. Freight amounted to P50,000 and freight insuranceamounted to P5,000.20. Site preparation of P100,000 and installment cost ofP75,000.21. Test run cost which includes P10,000 materials, P15,000direct labor cost, P1,000 allocated supervisor’s salary andother overhead cost of P5,000. The good produced was soldfor P30,000.22. Value‐added tax amounting to P100,00023. Import tax of P30,00Hybrid dealers bought computer equipment for R54000 on 1 July 2018.The equipment is deprecated at 20% to the diminishing balance method. prepare the depreciation and closing transfer entries in the general journal of hybrid dealers on 31 March 2019 and 31 March 2020MCSQ1:Harvard Company purchased equipment having an invoice price of $11,500. The terms of sale were 2/10, n/30, and Harvard paid within the discount period. In addition, Harvard paid a $160 delivery charge, $185 installation charge, and $931 sales tax. The amount recorded as the cost of this equipment is: A. $11,845.B. $12,776.C. $11,615.D. $12,546.MCQS2:To understand and use accounting information in making economic decisions, you must understand?(a) The nature of economic activities that accounting information describes(b) The assumptions and measurement techniques involved in developing accounting infrmation(c) Which information is relevant for a particular type of decision that is being made?(d) All of AboveMCQS3:Significant noncash transactions would not includea)conversion of bonds into common stock.b)asset acquisition through bond issuance.c)treasury stock acquisition.d)exchange of plant assets.
- Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method. Required: Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020. Please see attached for answer formatHybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method.Required:Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020.19.ABC Corp bought goods for P25000. Terms : 2%, 3% 2/10, n/30 FOB Shipping point Freight Prepaid. Freight related to the purchase was P1,000.The entry to record the purchase under the net method (periodic system) would include: Cr Accounts Payable 22,290 Cr Accounts Payable 24,290 Dr Purchases 23,290 Dr Purchases 24,290
- Help Save & Ext Su Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has cormmercial substance. Old Equipment Cash Book Value Fair Value Received Equipment A Equipment B $74,500 $81,600 $56,000 $12,300 $60,800 $ 9,600 For Equipment B, Pensacola would record a gain/(loss) of: DO Multiple Choice O $3,300. $14.800) ( Prev 6 of 15 Next>A company exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance. Old Equipment Cash Book Value Fair Value Received $ 73,800 $ 80,800 $ 12,100 The company would record the new equipment at: Multiple Choice $68,700. $70,200. $72,950. $56,200.Problem 23-4 (AICPA Adapted) Wilbur Company traded a used equipment for a newer model with a dealer. Old equipment: Original cost Accumulated depreciation Average retail price New equipment: 800,000 600,000 170,000 List price Cash price without trade in Cash payment with trade in Required: 1,000,000 900,000 780,000 Prepare journal entry to record the exchange transaction.
- Below is information relative to an exchange of equipment by Pensacola Inc. Assume the exchange has commercial substance. Case A Case B Old Equipment Book Value $75,000 $60.000 Old Equipment Fair Value $80,000 $56,000 ECOM dock 13 rations In Case B, Pensacola would record a gain/lloss) of. O $4,000. 0 (54,000. O ($10,000) O None of these answer choices are correct. Cash Received $12,000 $10,000Required information t2 of 2 (The following information applies to the questions displayed below.) On January 2, Summers Company received a machine that the company had ordered with an invoice price of $85,000. Freight costs of $1,000 were paid by the vendor per the sales agreement. The company exchanged the following on January 2 to acquire the machine: nts a Issued 2,000 sharos of Summers Company common stock, par value $1 (market value, $3.50 per share) b. Signed a note payable for $60,000 with an 1.5 percent interest rate (principal plus interest are due April 1 of the current year). c The balance of the invoice price was on account with the vendor, to be paid in cash by January 12. Book Print On January 3, Summers Company paid $2,400 cash for installation costs to prepare the machine for use. On January 12. Summers Company paid the balance due on its accounts payable to the vendor. ference 3. Indicate the effects of the purchase and subsequent cash payment on the accounting…Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens Company, invoice no. J34Y9, 250.25; terms net 15 days; dated May 1; FOB shipping point, freight prepaid and added to the invoice, 15 (total 265.25). 11Bought one weed trimmer from Lionels Lawn Landscaping, invoice no. R7740, 219.72; terms 2/10, n/30; dated May 9; FOB shipping point, freight prepaid and added to the invoice, 35 (total 254.72). 15Bought five bags of fertilizer from Wrights Farm Supplies, invoice no. 478, 210.97; terms net 30 days; dated May 13; FOB destination. 25Bought one lawn mower from Gutierrez Corporation, invoice no. 2458, 425.39; terms net 30 days; dated May 22; FOB destination. Assume that Williams Corporation had beginning balances on May 1 of 3,492.29 (Accounts Payable 212), 4,239.49 (Purchases 511), and 234.89 (Freight In 514). Record the purchases of merchandise on account in the purchases journal (page 13) and then post to the general ledger.