User Account

All Pages

Prepare the journal entry to record the sale

Assignment Help Accounting Basics
Reference no: EM132818941

Question - On July 1, 2021, STS Inc. acquires a piece of equipment at $230,000 to manufacture product A. It paid $4,000 for shipping and $3,500 for installation of the equipment. Testing fees amounted to $4,500. The company was able to sell some of the output produced during the testing for $600. It also had to repair one part of the equipment that was damaged during the testing, which cost $1,000.

The equipment's useful life is 10 years or 400,000 units of product A. Its residual value is $35,000. It produced 800 units in 2021, 3,000 units in 2022 and 4,500 units in 2023. The units of production method is to be used for depreciation.

Required -

1) Calculate the equipment total cost at acquisition.

2) The equipment was sold on December 31, 2023 for $230,000 cash. Prepare the journal entry to record the sale.

Reference no: EM132818941

Questions Cloud

How robotic processing automation will affect international : Express your opinion regarding how robotic processing automation (RPA) will affect international accounting and auditing professionals.
Characteristics that you feel are important for a leader : There are three personal characteristics that determine a person's leadership style. These are three: Self-awareness, Communication, and Empathy.
Identify at least one key goal and one direct : During the execution phase of a project, efficient management of the associated tasks, quality, cost, and delivery are key to reach the business objectives set.
Is everything that can be research worthwhile to do so : How do values such as those expressed by the Virtuous Business Model impact the knowledge creation model? Is everything that can be research worthwhile to do so
Prepare the journal entry to record the sale : The equipment's useful life is 10 years or 400,000 units of product A. Prepare the journal entry to record the sale
What factors might inhibit the success of optimal strategic : What factors might inhibit the success of the optimal strategic alternative identified? How can the issues you identified be addressed and corrected?
Determine the total costs of units completed and transferred : Beginning work in process in the finishing department was 80% completed to conversion. Determine the Total costs of units completed and transferred
How to report the features may be found on the website : For this Assignment, select a construct that can be assessed (e.g., anger, depression, IQ, mania, suicidal tendencies, developmental delays, education, etc.).
Do you agree with deb roy mechanism underlying birth of word : In your opinion and based on evidence, do you agree with Deb Roy's mechanisms underlying the birth of a word? Provide 2 reasons for why you agree or disagree.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Describe the new revenue recognition standards

Create a 7- to 10slide presentation. Describe the new Revenue Recognition standards. Project the impact of these new standards on financial reporting.

  Explain between accrued vs deferred adjusting entries

Outline 3 differences in the closing entry process between a sole trader and a private company.List 4 defining characteristics of social accounting

  Cbs companys manufacturing accounting system uses direct

cbs companys manufacturing accounting system uses direct labor costs to apply overhead to goods in process and finished

  Compute the cost of the ending inventory under each of

during april leary company sold 1000 units of product q. its beginning inventory and purchases during the month are

  Create a tax plan for the future redemption

Create a tax plan for the future redemption of the client's stock owned in the constructioncompany that will not be taxed according to Section 301 of the IRC.

  What is the recommended amount that Amber should elect

Amber's salary is $99,000, and her marginal tax rate is 24%. What is the recommended amount that Amber should elect as salary deferral treatment for 2019

  Which compensations will still allow to make a profit

A couple wants a refund of the entire cost of the tour because it rained. Which of the following compensations will still allow you to make a profit?

  Compute the present value of net cash flows

Compute the present value of net cash flows. Should Arroyo invest in the project? Include the salvage value as a cash receipt at the end of year #2.

  How do you react to Bridget position

Bridget pledged shares of publicly traded stock (worth $200,000, basis of $75,000) to satisfy the bank's requirement. How do you react to Bridget position

  How AASB incorporate changes to international accounting

ACCT20074: Assessment. How does the AASB incorporate changes to international accounting standards into the Australian accounting standards

  Determine stance on the issue of drug testing

Determine your stance on the issue of drug testing and employee drug use.What if the drug use has no effect on employee performance?

  How much was beginning accounts payable

Logan Company purchased goods on account for $4,500, paid $2,300 of Accounts Payable, How much was beginning Accounts Payable

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