Rooster Ltd. sells a printing press for $10,000 in order to purchase a newer model. The cost of the old printing press was $45,000, and accumulated depreciation up to date is $33,000. The journal entry to record the sale of the old printing press will require a A. credit to Loss on Sale of Equipment for $6,000 O B. debit to Equipment for $45,000 C. credit to Cash for $10,000 D. debit to Accumulated Depreciation for $33,000 C
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- Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny Side had net assets worth $390,000. A. What is the amount of goodwill in this transaction? B. What is Farm Fresh Agriculture Companys journal entry to record the purchase of Sunny Side Egg Distribution? C. What journal entry should Farm Fresh Agriculture Company write when the company tests for impairment and determines that goodwill is worth $1,000 in the year following the purchase of Sunny Side?Garcia Co. owns equipment that costs $77,300, with accumulated depreciation of $42,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $47,000 cash B. $34,500 cash C. $27,000 cash If an amount box does not require an entry, leave it blank
- Rizio Co. purchases a machine for $12,500, terms 2/10, n/60, FOB shipping point. The seller prepaid the $283 freight charges, adding the amount to the invoice and bringing its total to $12,783. The machine requires special steel mounting and power connections costing $864. Another $407 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $325 in damages occurred. Materials costing $40 are used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages. Complete the below table to calculate the cost recorded for this machine. (Rizio pays for this machine within the cash discount period.) Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recordedMathews Bus Service traded in a used bus for a new one. The original cost of the old bus was$52,000. Accumulated depreciation at the time of the trade-in amounted to $34,000. The new buscost $65,000, but Mathews was given a trade-in allowance of $10,000.a. What amount of cash did Mathews have to pay to acquire the new bus?b. Compute the gain or loss on the disposal for financial reporting purposes.c. Explain how the gain or loss would be reported in the company’s income statement.Bravo Company's furnace, which has a current book value of $40,000 (original cost less than accumulated depreciation), has been destroyed. If the insurance company pays Bravo $45,000, which of the following transactions is Bravo supposed to record? Select the single best answer: A debit Cash $45,000 credit Equipment/Furnace $45,000 B. debit Cash $40,000, debit Equipment/Furnace $40,000 C credit Gain on Disposition of Equipment/Furnace $45,000, debit Cash $45,000 D. debit Equipment/Furnace $5,000 credit Equipment/Furnace $40.000, debit Cash $45,000 E credit Gain on Disposition of Equipment/Furnace $5,000 credit Equipment/Furnace $40,000; debit Cash $45.000
- Florence's Flowers sells an old delivery van for $2,000. The van had an original cost of $20,000 and the balance in Accumulated Depreciation on the date of sale is $17,000. Assume depreciation is appropriately recorded up to the date of sale. The entry to record the sale would include aWillis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,000. Accumulated depreciation at the time of the trade-in amounted to $34,000. The new bus cost $67,000, but Willis was given a trade-in allowance of $10,000. a. What amount of cash did Willis have to pay to acquire the new bus? b. Compute the gain or loss on the disposal for financial reporting purposes. c. Explain how the gain or loss would be reported in the company's income statement. Solutions a. $57,000 ($67,000 less $10,000 trade-in allowance) b. Trade-in allowance Less: Book value ($52,000 - $34,000) Loss on trade-in $ 10,000 c. The $8,000 loss on trade-in is reported in Willis Bus Service's income statement following the amount of income from operations. (18,000) (8,000)Kylie Company has sold its old equipment with an original cost of $2,000,000 and accumulated depreciation of $1,800,000 for 3-year $250,000 note. The loan's interest rate is 7% while the market rate of similar notes is 8%. What should be the journal entry to record the disposal of the equipment?
- Bramble Manufacturing has old equipment that cost $56,000. The equipment has accumulated depreciation of $27,600. Bramble has decided to sell the equipment. (a)What entry would Bramble make to record the sale of the equipment for $30,000 cash? (b)What entry would Bramble make to record the sale of the equipment for $15,000 cash?Rizio Co. purchases a machine for $12,000, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $120 discount. Transportation costs of $271 were paid by Rizio. The machine required mounting and power connections costing $830. Another $391 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $360 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,900. Accumulated depreciation at the time of the trade-in amounted to $35,300. The new bus cost $71,000 but Willis was given a trade-In allowance of $10,600. a. What amount of cash did Willis have to pay to acquire the new bus? b. Compute the gain or loss on the disposal for financial reporting purposes. Complete this question by entering your answers in the tabs below. Required A Required B What amount of cash did Willis have to pay to acquire the new bus? Payment of cash