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- Ford for the company president on June 1, 2020 for $75,000. The automobile is expected to have a useful life of 3 year or 120,000 miles. The trade in value (salvage value) at the end of the useful is expected to be $15,000. The automobile will be driven 25,000 miles in 2020, 40,000 miles in 2021, 32,000 miles in 2022, and 23,000 miles in 2023. Straight-Line Depreciation Round all amounts to the nearest dollar. Compute annual depreciation: Months owned in 2020 = Compute depreciation expense for the period June 1 through December 31, 2020 Compute depreciation expense for 2021 Compute depreciation expense for 2022 Compute depreciation expense for the period January 1 through May 31, 2023K During 2021, Ming's Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior to construction, the city of Naperville charged Ming's $1,000 for a building permit, which Ming's paid. Ming's also paid $15,000 for architect's fees. The construction cost of $670,000 was financed by a long-term note payable, with interest costs of $28,020 paid at the completion of the project. The building was completed June 30, 2021. Ming's depreciates the building using the straight-line method over 35 years, with estimated residual value of $330,000. Read the requirements. c. Joumalize depreciation on the building for 2021. Journal Entry Date Accounts Depreciation Expense-Building Accumulated Depreciation Building Balance Sheet Plant assets: Debit Less: 5,486 Credit 5,486 Requirement 2. Report Ming's plant assets on the company's balance sheet at December 31, 2021. *** Check answer ot MO ot MO ot MO ot MOHeadland Construction Company began work on a $417,500 construction contract in 2020. During 2020, Headland incurred costs of $285,000, billed its customer for $217,500, and collected $183,000. At December 31, 2020, the estimated additional costs to complete the project total $155,835. Prepare Headland's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) No. Account Titles and Explanation Debit Credit (a) (b)
- Glass House Co. decides to develop a new software. The project begins in 2019. Glass House Co. incurs the following expenses in 2019 and 2020 in connection with the project: 2019 2020 Salaries $31,000 $19,000 Equipment $18,000 $21,000 Depreciation on equipment $19,500 $15,500 Glass House Co. elected to apply a deferral and amortization method. The benefits from the project will be realized starting on May 1st, 2021. How much can Glass House Co. deduct for R&E expenses in 2021? Group of answer choices $12,400 $18,600 $16,533 $20,6671. On January 1, 2019, Christian company took out a loan of 12,000,000 with an annual interest of 10% in order to finance specifically the renovation of a building. The renovation work started on the same date. Work on the building was substantially complete on October 31, 2019. The loan was repaid on December 31, 2019, and P150,000 investment income was earned in the period to October 31, 2019, on the proceeds of the loan not yet used for renovation. What is the amount of capitalizable borrowing cost?H1. Account
- Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)Tiger Woods makes the following construction related expenditures: 450,000 on January 1 2021 300,000 on Oct 1 2021 600,000 on Dec 1 2021 500,000 on March 1, 2022 and construction ends June 30, 2022 He has a 600,000 construction loan at 6 percent. In addition, they have a 1,000,000 loan at 4 percent and a 3,000,000 loan at 5 percent. How much depreciation expense does he recognize in 2022 if the company uses straight-line depreciation, begins depreciating as soon as construction is finished, and the building has 30 year useful life and a residual value of 200,000?Miriam Corp. began leasing retail space at Oberlin Village in Raleigh, NC, on December 1, 2022. Before opening its new store, Miriam spent $7,000 on special lighting for the store. The lease term is ten (10) years, and the special lighting has an economic life of five (5) years. Which statement shows the correct accounting treatment for the new lighting in 2022? Miriam should debit its “Leasehold Improvements” account for $7,000 and depreciate the lighting over the lease term of ten (10) years. Miriam should debit its “Repairs and Maintenance Expense” account by $7,000. Miriam should debit its “Cost of Goods Sold” account by $7,000. Miriam should debit its “Leasehold Improvements” account for $7,000 but should not depreciate the lighting. Miriam should debit its “Leasehold Improvements” account for $7,000 and depreciate the lighting over its economic life of five (5) years.
- In 2018, the Laguna Inc entered into a contract to construct a road for 5th Avenue for $14,000,000. The road was completed in 2018. Information related to the contract is as follows: 1. Calculate the amount of gross profit to be recognized in each of the three years under percentage-of-completion method of accounting for long-term construction contracts. 2. Calculate the amount of gross profit to be recognized in each of the three years under completed contract method of accounting for long-term construction contracts.Montgomery Industries spent $690,000 in 2023 on a construction project to build a library. Montgomery also capitalized $34,500 of interest on the project in 2023. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2024. Additional expenditures in 2024 were as follows: February 28 April 30 July 1 September 30 $ 98,100 188,100 44,100 72,100 Required: Determine the completed cost of the library. Note: Do not round intermediate calculations. Completed cost of the libraryOn April 1, 2021 Summer Time Pools agreed to install a pool for the Stafford family. Due to the popularity of pools Summer Time and the Stafford family agreed that the pool will not be installed until May 1, 2022. The Stafford family paid Summer Time $40,000 on April 5, 202. Interest on similar project is $2,400. Will the interest be incorporated into the transaction price (yes/no) If the interest is incorporated into the price will the company recognize interest expense or interest income? What is the transaction price?
