On july 1 2015 norwel decides to outsource its circuit

Assignment Help Accounting Basics

Reference no: EM13584415

Norwel Company manufactures miniature circuit boards used in wireless phones and personal organizers. On January 2, 2014, Norwel purchased a circuit board stamping machine at a retail price of $12,000. Norwel paid 5% sales tax on this purchase. Norwel paid a contractor $1,400 for a specially wired platform for the machine, to ensure non-interrupted power to the machine. Norwel estimates the machine will have a 4-year useful life, with a residual value of $2,000 at the end of 4 years. Norwel uses straight-line depreciation and employs the half-year convention in accounting for partial-year depreciation (that is, it takes a half year of depreciation in the first year of an asset's useful life). Norwel's fiscal year ends on December 31.

1) At what amount should Norwel record the acquisition cost of the machine?

2) What journal entry should Norwel record in 2014?

3) At what amount will the machine be reported in Norwel's balance sheet at December 31, 2014?

4) On July 1, 2015, Norwel decides to outsource its circuit board operations to Boards-R-Us Inc. As part of his plan, Norwel sells the machine (and the platform) to Boards-R-Us for $7,000. What is the impact of this disposal on Norwel's 2015 income before taxes?

Reference no: EM13584415

Questions Cloud

What is the weight henry can be 95 confident the mean falls : henry lom feels that the quantity of chocolates in a particular type of packet has decreased. to test this feeling he

Why is the heart described as a double pump describe the : why is the heart described as a double pump? describe the general structure of arteries and veins. how are they

An electromagnetic wave travelling the z direction has a : an electromagnetic wave travelling the z direction has a maximum magnetic field of 10-7 t in the negative y direction

What is the number of defectives they can be 95 confident : bcs quality assurance programme chooses a random sample of 50 units and finds that 12 are defective. what is the number

On july 1 2015 norwel decides to outsource its circuit : norwel company manufactures miniature circuit boards used in wireless phones and personal organizers. on january 2 2014

Give two examples of negative feedback loops in the : give two examples of negative feedback loops in the endocrine system 1 a simple feedback mechanism and 2 a more

To reduce emergency room waiting times the hospital : according to studies by vha inc. an alliance of community hospitals on average it takes 49 minutes before a doctor sees

Structure of cyclic trimetasilicate ion structure and : 1. structure of cyclic trimetasilicate ion?2. structure and bonding inxef4.3. why has cd4 slightly lower boiling point

How would you be assured of getting all of the amino acids : if you were considering becoming a strict vegetarian eating no animal products even milk or eggs how would you be

User Account

All Pages