The machine has an expected useful life of five years and

Assignment Help Accounting Basics

Reference no: EM13481706

Leslie Company sells business stationery imprinted with acustomer's business name and address. To do this, it purchased a printing machine costing$48,000 on January 1, 2004. The machine has an expected useful life of five years and anestimated salvage value of $3,000. Leslie Company uses straight-line depreciation for all of its depreciable assets.

On August 1, 2007, the manager of the print shop was persuadedto purchase a new machine that operated more efficiently. The old machine was sold at thattime for $5,000.

a. Calculate the depreciation expense recorded on the oldmachine for each year of use.

b. Calculate any gain or loss on disposal of the oldmachine.

c. Show how information about the printing machine transactionswould be reported on the statement of cash flows for years 2004 through 2007. Assume theindirect format is used.

d. How would the information about the printing machine affectthe income statement for years 2004 through 2007?

Reference no: EM13481706

Questions Cloud

Prepare a bond interest expense and premium ammorization : on january 1 2007 the calvert company issues 12 100000 face value bonds for 103545.91 a price to yield 10. the bonds

Prepare the journal entry to issue the bonds on july 1 : on july 1 2009 a corporation issued 800000 of 9 8 yearbonds to yield 10. interest is paid semiannually on december

Prepare an income statement statement of retained : tyler smith has worked in an upholstery shop for 10 years. tylers wages were 20000. lately tyler has been unhappy with

Aero inc requires sales of 2000000 to cover its fixed : aero inc. requires sales of 2000000 to cover its fixed costs of 700000 and to earn net income of 200000. what percent

The machine has an expected useful life of five years and : leslie company sells business stationery imprinted with acustomers business name and address. to do this it purchased a

Maccloud industries has two divisions-standard and premium : maccloud industries has two divisions-standard and premium. each division has hundreds of different types of tennis

Explain the procedures of apportionment of overhead : explain the procedures of apportionment of overhead expenses through departmentalization with the help of practical

The sales mix is 30 and 70 q-chip plus q-chip has variable : ramirez corporation sells two types of computer chips. the sales mix is 30 and 70 q-chip plus. q-chip has variable

When the stock market is going up over a long period of : when the stock market is going up over a long period of time investors can become complacent about the risks of being a

User Account

All Pages