Reference no: EM131806740
Problem - Transactions for fixed assets, including sale
The following transactions, adjusting entries, and closing entries were completed by D. Hurd Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used.
2010
Jan. 9. Purchased a used delivery truck for $30,000, paying cash.
Mar. 17. Paid garage $400 for miscellaneous repairs to the truck.
Dec. 31. Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with a residual value of $6,000 for the truck.
2011
Jan. 2. Purchased a new truck for $48,000, paying cash.
Aug. 1. Sold the used truck for $12,500. (Record depreciation to date in 2011 for the truck.)
Sept. 23. Paid garage $325 for miscellaneous repairs to the truck.
Dec. 31. Record depreciation for the new truck. It has an estimated residual value of $11,000 and an estimated life of ve years.
2012
July 1. Purchased a new truck for $52,000, paying cash.
Oct. 2. Sold the truck purchased January 2, 2011, for $17,000. (Record depreciation for the year.)
Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $14,000 and an estimated useful life of eight years.
Instructions - Journalize the transactions and the adjusting entries.
Recommendation for firm about project acceptance criteria
: Assume a cost improvement project has only a first cost of $100,000 and a monthly net savings, M. There is no salvage value.
|
How much of this is interest and how much is principal
: How much does he repay? How much of this is interest and how much is principal?
|
Savings account from an inheritance
: Joe Miner has $3000 in his savings account from an inheritance 10 years ago. If the savings account pays interest annually at a rate of 5%, how much was deposit
|
What compound rate of interest has susan earned
: Susan Cardinal deposited $500 in her savings account, and 6 years later, the account has $600 in it. What compound rate of interest has Susan earned on her capi
|
Journalize the transactions and the adjusting entries
: Aug. 1. Sold the used truck for $12,500. (Record depreciation to date in 2011 for the truck.) Journalize the transactions and the adjusting entries
|
Estimating the community benefits
: Use EAWs to calculate the benefit/cost ratio at i = 6% for a new library. The first cost is $500K, and O&M costs are $100K per year.
|
Identify your major cash flows for the current
: Identify your major cash flows for the current school term as first costs, O&M expenses, salvage values, revenues, overhauls
|
Describe the disease and discuss efforts to control it
: Describe the disease and discuss efforts to control it.Identify the environmental factors related to this disease.
|
Draw the cash flow diagram
: At the end of year 6, it will be donated to Metro U's School of Engineering. The donation will save $2000 in taxes. Draw the cash flow diagram.
|