Reference no: EM132865506
Problem - Capital versus Revenue Expenditures - On January 1, 2014, Jose Company purchased a building for $200,000 and a delivery truck for $20,000. The following expenditures have been incurred during 2016:
The building was painted at a cost of $5,000.
To prevent leaking, new windows were installed in the building at a cost of $10,000.
To improve production, a new conveyor system was installed at a cost of $40,000.
The delivery truck was repainted with a new company logo at a cost of $1,000.
To allow better handling of large loads, a hydraulic lift system was installed on the truck at a cost of $5,000.
The truck's engine was overhauled at a cost of $4,000
Required -
1. Determine which of those costs should be capitalized. Also record the journal entry for the capitalized costs. Assume that all costs were incurred on January 1, 2016.
2. Determine the amount of depreciation for the year 2016. The company uses the straight-line method and depreciates the building over 25 years and the truck over six years. Assume zero residual value for all assets.
3. How would the assets appear on the balance sheet of December 31, 2016?
|
Discussing the health care industry
: Discussing the health care industry. What do you think will be the biggest change in health care in the next 10 years?
|
|
Identify the different ways society is stratified
: Identify the different ways society. Apply sociological imagination, theoretical perspectives, and scientific research to uncover patterns of social behavior.
|
|
Determine the amount of depreciation expense
: Assuming that Mercator uses the straight-line basis to depreciate its operating assets, determine the amount of depreciation expense for 2016 and 2017
|
|
Determine which of those costs should be capitalized
: Determine which of those costs should be capitalized. Also record the journal entry for the capitalized costs. Assume that all costs were incurred on January
|
|
The katrina breakdown
: Review "The Katrina Breakdown" in Chapter 3. Setting aside the philosophical and legal issues this case raises,
|
|
Make the journal entry to record depreciation
: On July 1, 2016, the asset was sold for $40,000. Make the journal entry to record depreciation for 2016. Record all transactions necessary for sale of the asset
|
|
Evaluate and report current issue related to management
: analyze, evaluate and report a current issue related to management, specifically, to areas d of management that involve employee supervision
|
|
How does capitalism have a global reach
: What type of economy does Marx propose/support? According to the films, what problems are associated with a capitalist/market economy?
|