Prepare the journal entries to record the depot

Assignment Help Financial Accounting
Reference no: EM132871859

Question - Teal Company purchases an oil tanker depot on January 1, 2020, at a cost of $565,300. Teal expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $71,990 to dismantle the depot and remove the tanks at the end of the depot's useful life.

Prepare the journal entries to record the depot and the asset retirement obligation for the depot on January 1, 2020. Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2020, is $40,198.

Reference no: EM132871859

Questions Cloud

Subcontracting remain an area of large controversy : Why does subcontracting remain an area of large controversy in collective bargaining and what exactly have unions tried to do regarding it?
How much total revenue is recognized from the contract : The franchisee starts selling the products on August 1, 20x1 and reports total sales of 600,000 for the year. How much total revenue is recognized
Identify and explain which principles applied : Identify and explain which principles you applied. "Even though at least 60 percent of Americans disapprove of cloned food, the FDA in 2006
Hospital performance of this quality measure : One of the quality measures reported by hospitals to the Centers for Medicare and Medicaid Services (CMS) that is published on the Hospital Compare
Prepare the journal entries to record the depot : Prepare the journal entries to record the depot and the asset retirement obligation for the depot on January 1, 2020
Relating to the role of organizational communication : What are two theories that can be used in a theoretical framework relating to the role of organizational communication (climate, flow, nature) in employee job p
Make a plan of action and produce a pamphlet supporting : Explain why these members are critical to your goal. Make a plan of action and produce a pamphlet supporting your cause. Who will you be reaching out to? Why?
How much revenue should Smith and Sons recognize for year : If a customer purchases both software packages on June 1, 2021, how much revenue should Smith & Sons recognize for the year
Why is sociological representation important : Why is sociological representation important? If congressional representatives have racial, religious, or educational backgrounds similar to their constituents

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is currency depreciation for the year as a percentage

Calculates (?EA/B,t)/(EA/B,t) to be -0.07 but does not convert it into a percentage depreciation. What is her currency depreciation for the year as a percentage

  Find and prepare the journal entry for the acquisition

Prepare the journal entry for the acquisition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

  Evaluate the cash payback period for each proposal

Evaluate the cash payback period for each proposal. Arrange a differential analysis report, dated 15 th November of the present year, on whether the equipment should be leased or sold.

  What are some of the benefits of abc

What are some of the benefits of ABC that relate to the financial services industry? What are three things that the company's original costing method did not take into account?

  Problem regarding the expected returns of portfolio

1. You own a portfolio invested 12.35% in Stock A, 12.21% in Stock B, 12.87% in Stock C, and the remainder in Stock D. The betas of these four stocks are 1.49, 0.74, 0.58, and 1.45. What is the portfolio beta?

  Find what is the monthly payment for the loan

Suppose you borrowed $10,000 from a bank to be repaid in 3 years and the interest applied is 6%compounded monthly. What is the monthly payment for this loan?

  For how many years can she pay for her education

Sally received and invested $57,642 from her parents to fund her post-secondary education. For how many years can she pay for her education

  Calculate the estimated cash receipts

Scottsdale Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows: Actual: July $ 97,600 August 105,300 Forecast: Calculate the estimated cash receipts for September, October, and Novembe..

  What is the current market price of the bonds

The bonds have a yield to maturity of 9%. What is the current market price of these bonds? Do not round intermediate calculations.

  Modify the agreement to reduce the price of the remaining

On July 15, Zink Jewels agrees to a contract to sell 4,000 promise rings for $100,000 to Costless Stores, Inc. On October 1, after 2,000 rings pair of have been delivered, Zink and Costless modify the agreement to reduce the price of the remaining 1,..

  Find and prepare only the stockholder equity section

Find and Prepare only the Stockholder's Equity section of the Classified Balance Sheet for the year end. Be sure to use a good format, dollar signs

  What is the flexible budget variance for operating income

The static budget for operating income was $96,000. What is the flexible budget variance for operating income on the Flexible Budget Performance Report?

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!

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