Business, 21.06.2020 01:57 Queenhagar

Blossom Company sells office equipment on July 31, 2022, for $23,730 cash. The office equipment originally cost $79,700 and as of January 1, 2022, had accumulated depreciation of $36,130. Depreciation for the first 7 months of 2022 is $4,970. Prepare the journal entries to (a) update depreciation to July 31, 2014, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answers: 2

Show answers

Answers

Answer from: mcsaggers2842

a. The entries are:

Debit Depreciation expenses for $4,920;

Credit Accumulated depreciation for $4,920.

b. The entries are:

Debit Cash for $23,730

Debit Accumulated depreciation for $41,100

Debit Loss on disposal of equipment for $14,870

Credit Equipment for $79,700

Explanation:

(a) Prepare the journal entries to update depreciation to July 31, 2022.

Note: the correct date to update to is July 31, 2022 not the wrongly stated July 31, 2014 in the question.

The journal entries will look as as follows:

Date Particulars Dr ($) Cr ($)

July 31 Depreciation expenses 4,920

Accumulated depreciation 4,920

To record the updating of depreciation to July 31, 2022.

(a) Prepare the journal entries to record the sale of the equipment.

To prepare this, we need to first calculate the gain or loss on disposal as follows:

Accumulated depreciation till date = $36,130 + $4,970 = $41,100

Net book value = Equipment cost - Accumulated depreciation till date = $79,700 - $41,100 = $38,600

Gain or loss on disposal = Sales proceed - Net book value = $23,730 - $38,600 = $14,870 loss

The journal entries will be as follows:

Date Particulars Dr ($) Cr ($)

July 31 Cash 23,730

Accumulated depreciation 41,100

Loss on disposal of equipment 14,870

Equipment 79,700

(To record disposal of equipment.)

Answer from: Quest

The government cuts taxes

Answer from: Quest

Answerthe legislative process experiences longer delays than monetary policy;

Another question on Business

Business, 22.06.2019 00:00

Chance company had two operating divisions, one manufacturing farm equipment and the other office supplies. both divisions are considered separate components as defined by generally accepted accounting principles. the farm equipment component had been unprofitable, and on september 1, 2018, the company adopted a plan to sell the assets of the division. the actual sale was completed on december 15, 2018, at a price of $600,000. the book value of the divisionâ€™s assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. the division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through december 15. the income tax rate is 40%. chanceâ€™s after-tax income from its continuing operations is $350,000. required: prepare an income statement for 2018 beginning with income from continuing operations. include appropriate eps disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)

Answers: 2

Answer

Business, 22.06.2019 11:50

Which of the following does not offer an opportunity for timely content? evergreen content news alerts content that suits seasonal consumption patterns content that matches a situational trigger content that addresses urgent pain points

Answers: 2

Answer

Business, 22.06.2019 14:10

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.

Answers: 2

Answer

Business, 22.06.2019 20:00

In myanmar, six laborers, each making the equivalent of $ 2.50 per day, can produce 40 units per day. in china, ten laborers, each making the equivalent of $ 2.25 per day, can produce 48 units. in billings comma montana, two laborers, each making $ 60.00 per day, can make 102 units. based on labor cost per unit only, the most economical location to produce the item is china , with a labor cost per unit of $ . 05. (enter your response rounded to two decimal places.)

Answers: 3

Answer

You know the right answer?

Blossom Company sells office equipment on July 31, 2022, for $23,730 cash. The office equipment orig...

Questions