User Account

All Pages

On january 2 2014 johnson inc sold used equipment to

Assignment Help Accounting Basics
Reference no: EM13571900

On January 2, 2014, Johnson Inc. sold used equipment to Rencher Company for $3,000 down and three annual payments of $9,500, each made at December 31. Rencher can borrow at 5.5%, Johnson at 4%. Johnson's equipment had cost $45,000 new and had a book value of $25,000 at the time of the sale.

1-1. Compute the sales price of the equipment.

1-2. Compute the amount of any gain or loss Johnson had on the sale.

1-3. Record the sale by Johnson.

1-4. Prepare an amortization table for Johnson.

1-5. Prepare the journal entries needed for Johnson at December 31, 2015.

1-6. Record the purchase of the equipment by Rencher on 1/2/14.

1-7. Determine how the entry for the sale in 2014 would affect the SCF.

1-8. Determine how the enry(ies) written on 12/31/15 would affect the SCF.

Reference no: EM13571900

Questions Cloud

Describe the importance of process mapping in a supply : 1.describe how you would identify bottlenecks in your value stream? how would you ensure sustained flow through those
If you can earn 13 on similar-risk investments what is the : elk county telephone has paid the dividends shown in the following table over the past 6 years.year dividend per
The nelson company has 1690000 in current assets and 650000 : the nelson company has 1690000 in current assets and 650000 in current liabilities. its initial inventory level is
It is always a good idea to verify amounts in the general : it is always a good idea to verify amounts in the general ledger just to be sure there are no problems or stupid
On january 2 2014 johnson inc sold used equipment to : on january 2 2014 johnson inc. sold used equipment to rencher company for 3000 down and three annual payments of 9500
The companys cost of borrowing is 9 and its weighted costof : the companys cost of borrowing is 9 and its weighted costof capital is 14. calculate the modified internal rate of
Identify any qualitative factors that could influence the : four yards of material are required to lay out the dress pattern. some material remains after cutting which can be sold
The approach of a hurricane risks damage to the local : assume that you are the emergency operations manager for a town on the coast that has oil refineries seaport facilities
Assume mike did not obtain canadian dollars until the : mike suerth sold a call option on canadian dollars for .01 per unit. the strike price was .76 and the spot rate at the

Reviews

Write a Review

Accounting Basics Questions & Answers

  Purpose and impact of active participation

1. Define and discuss the purpose and impact of Active Participation 2. Define and discuss the purpose and impact of Tax shelters 3. Define and discuss the purpose of "Fruit of the Tree"

  Problem related to beginning balance

If Cash has debit postings of $52,000, credit postings of $39,000, and a normal ending balance of $22,000, what was its beginning balance?

  Unadjusted trial balance

Wecker Company's year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be 1.5% of accounts receivable.

  Watney inc purchased 25000 of 6 hamel bonds at par on july

watney inc. purchased 25000 of 6 hamel bonds at par on july 1 2013. the bonds pay interest semiannually. watney intends

  What is the equivalent annual cost of operating

A machine which has a 10 year life will cost $11,000 now with annual operating costs of $500 the first year and increasing $50 per year each of the next 9 years. If the salvage value is estimated to be $2,000 at the end of the 10th year,

  Implementing change in accounting

Explain briefly the difference between those two methods of applying an accounting change. First give a definition of the two types of applications and then answering this question: If I were going to switch depreciation methods from straight line ..

  As of december 31 gammelguard corporation has outstanding

as of december 31 gammelguard corporation has outstanding accounts receivable of 2.4 million. sales on credit during

  Expected benefit to cost ratio

If the drill press costs $10,000 determine the expected benefit to cost ratio of the project using a MARR of 15%. Should the automated drill press be purchased?

  Culver corporation had 11000 sres if its 5 par value common

culver corporation had 11000 sres if its 5 par value common stock outstanding. on june 1 the corporation acquired 10000

  Compute the break-even point

Compute the break-even point

  What will be the effect on net income

Ross would incur special shipping costs of $2 per scale if the order were accepted. Ross has sufficient unused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net income?

  As a potential investor what is the problem with different

as a potential investor what is the problem with different countries having different accounting standards? as the

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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