Determine the amount of bonus paid to the ceo

Assignment Help Financial Accounting
Reference no: EM132793958

Hamburg Company purchased a machine in 2018 for $800,000. The machine has a five year life and a salvage value of $100,000. They depreciated the machine for three years using double declining balance depreciation. At the beginning 2021, they decided that the machine had three years of useful life remaining and a salvage value of $30,000 and should be depreciated using straight line depreciation . Help me Journalize the depreciation expense for 2021. Hamburg Company also had been using the completed contract method to recognize profits for 2020 and 2019. They have chosen to use the percentage of completion method and correct any bonuses paid in the past. CEO Frau Helga Munster is paid a bonus of 3% of construction profits.

                                                     2020                  2019

Completed Contract                $400,000         $450,000

Percentage of Completion         $600,000            $580,000

Problem 1: Determine the amount of bonus paid to the CEO in 2020.

Reference no: EM132793958

Questions Cloud

Describe the economic system known as the american system : Describe the economic system known as the American System. Who were the opponents of the American System? What were their arguments against it?
How are data science and artificial intelligence changing : From the panel discussion, how are data science and artificial intelligence changing the fashion industry? From the panel discussion, what job and career.
How much is budgeted sales revenue for the third quarter : 13% of the next quarter's sales. Each surfboard costs $100 and is sold for $130. How much is budgeted sales revenue for the third quarter of 2020?
Compute current tax expense and total tax expense : Life insurance premiums of P200,000 were recognized each year on key officers for 2020 and 2021. Compute current tax expense and total tax expense
Determine the amount of bonus paid to the ceo : Determine the amount of bonus paid to the CEO in 2020. Hamburg Company purchased a machine in 2018 for $800,000. The machine has a five year life
What are some strengths that have allowed constitution : What are some of the strengths that have allowed the Constitution to survive the test of time? Basically, why is the U.S. Constitution still around where other.
What are preferred structures for a certain industry : 1. What are preferred structures for a certain industry, government, or business sectors and why?
Compare absorption costing and marginal costing : Compare absorption costing, marginal costing and one other costing method of your choice
What is yield to maturity on the vail bonds : What is yield to maturity on the Vail bonds given the current market price of the? bonds? Should you purchase the bond at the current market? price?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Which project should nk construction select

Which project should NK construction select? How would your solution change if the company is unable to re-invest in either project at the end

  What is included in the journal entry to record transaction

Exchange for land and building that have a fair value of $50,000 and $80,000 respectively. What is included in the journal entry to record this transaction?

  Determine the bond interest expense for the first year

Determine the bond interest expense for the first year and explain why the company was able to issue the bonds for $18,851,252

  Prepare the cash flows from operating activities section

Ames Company reported 2017 net income of $151,000. During 2017, accounts receivable increased by $13,000 and accounts payable increased

  Determine diluted earnings per share

Determine diluted earnings per share for 2019, On January 1, 2019, Lund SA issued 10-year, €3,000,000 face value, 6% bonds, at par. Each €1,000 bond

  What are the ending assets for the year

Beginning assets were $437,600, beginning liabilities were $262,560, common stock issued during the year totaled $45,000, revenue for the year was $414,250, expenses for the year were $280,000, dividends declared was $22,700, and ending liabilities i..

  Explain the accounting for convertible preferred stock

Describe the accounting for the issuance, conversion, and retirement of convertible securities.

  How do figure nominal payback

How do figure nominal payback, discount payback, NPV and IRR. The estimated purchase price for the equipment required to move the operation

  Which the best sentence reflect the decrease in trade

Which the best sentence reflect the decrease in trade receivables balance at the end of the year? increase the current ratio and quick ratio

  Which relating to customer accounts of entity b is correct

Which relating to the customer accounts of Entity B is correct? Entity B purchases large pieces of vacant land. It sub-divides this land

  Calculate elizabeths taxable income for the 2017-18 tax year

FNS50217-Diploma of Accounting-Australia-Monarch Institute- Calculate the minimum net capital gain for the 2017/18 tax year.

  What is the amount that martin should recognize

Two months later, Martin sold the stock on February 15 for $7,500. What is the amount that Martin should recognize as gain on the sale of stock?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd