Reference no: EM132843522

Questions -

Q1. On January 1, 2020, DTF Co. reported Supplies on hand balance of $1,400. During 2020 DTF Co. purchased additional supplies for $7,100. Physical count of inventory on Dec. 31, 2020 revealed a balance of $1,250 worth of supplies. Show how would DTF Co. report the accounts related to Supplies in the Income Statement and Balance Sheet on Dec. 31, 2020, its fiscal yearend.

Q2. Early January of 2020, Jordan Medical Clinic (JMC) decided to buy an X-ray machine. JMC contacted the supplier and found out that the cash price was $187,000. They also found that they can buy it on installments but at a different price. JMC decided to buy the machine on installment basis. The contract price was $201,750 payable $48,0000 down, and $10,250 a month for the next fifteen months. Additional $2,850 were paid for wiring & setting up the machine. The costs of running the X-ray machine during 2020 was $2,450. Determine the Book Value of the X-ray machine at the Acquisition date and at the End of 2020. Assume JMC recognized a total of $26,000 as depreciation expense on the X-ray machine at the end of 2020.