a. Depreciation on the company's wind turbine equipment for the year is $6,500. b. The Prepaid Insurance account for the solar panels had a $3,500 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $1,350 of unexpired insurance coverage remains at year-end. c. The company received $7,500 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. d. As of December 31, $2,700 in wages expense for the organic produce workers has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $550 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. For each of the above separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table below by indicating the amount and direction (+) increase or (-) decrease) of the effect. Adjusting Entry 8 b C d. 0 Net Income Total Assets Total Liabilities

a. Depreciation on the company's wind turbine equipment for the year is $6,500. b. The Prepaid Insurance account for the solar panels had a $3,500 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $1,350 of unexpired insurance coverage remains at year-end. c. The company received $7,500 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. d. As of December 31, $2,700 in wages expense for the organic produce workers has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $550 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. For each of the above separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table below by indicating the amount and direction (+) increase or (-) decrease) of the effect. Adjusting Entry 8 b C d. 0 Net Income Total Assets Total Liabilities

Name: a. Depreciation on the company's wind turbine equipment for the year
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Description: a. Depreciation on the company's wind turbine equipment for the year is $6,500.b. The Prepaid Insurance account for the solar panels had a $3,500 debit balance at December 31 before adjusting forthe costs of any expired coverage. Analysis of prepaid

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Before you begin this assignment, review the Tying It All Together feature in the chapter iHeartMedia , Inc. in their annual report for the year ending December 31, 2015, state that the plant assets reported on its balance sheet includes the following: Depreciation is computed using the straight-line method. Requirements 1. Suppose iHeartMedia, Inc. purchases a new advertising structure for $100,000 on August 1. The residual value of the structure is $4,000 and the useful life is 10 years. How would iHeartMedia record the depreciation expense on December 31 in the first year of use? What about the second year of use? 2. What would be the book value of the structure at the end of the first year? What would be the book value of the structure at the end of the second year? 3. What would be the impact on iHeartMedia, Inc. financial statements if they failed to record the adjusting entry related to the structure?
Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 $50,000 2,700 750 958 1,500 2 Record the purchase of equipment.
Further information 1. Depreciation has not yet been charged. There were no movements in non-current assets during the year. The plant is depreciated at 10% straight-line on a monthly basis taking into account the month of sale or purchase. Freehold buildings are depreciated over their useful life of 40 years. Depreciation on the plant is charged to cost of sales. Depreciation on freehold buildings is charged to administrative expenses. 2. Closing inventories at cost amounted to £8,650,000. 3. The company paid £138,000 in insurance costs in August 2020, which covered the period from 1 September 2020 to 31 August 2021. This was included in administrative expenses in the trial balance. 4. Interest on the bank loan for the last three months of the year has not been included in the accounts in the trial balance. The corresponding figure as at 31 December 2019 was £220,000. 5. The income tax charge for the year has been calculated as £1,030,000. 6. A cheque received from…
Required information [The following information applies to the questions displayed below.] a. Depreciation on the company's wind turbine equipment for the year is $5,300. b. The Prepaid Insurance account for the solar panels had a $2,300 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $750 of unexpired insurance coverage remains at year-end. c. The company received $3,900 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. d. As of December 31, $1,500 in wages expense for the organic produce workers has been incurred but not yet paid. e. As of December 31, the company has earned, but not yet recorded, $430 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. or each of the above separate cases, prepare the required December 31 year-end adjusting…
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NewTech purchases computer equipment for $273,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $26,000. Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. Note: Enter all amounts as positive values. Depreciation for the Period End of Period Year Beginning-Year Book Value Depreciation Rate Annual Depreciation Accumulated Year-End Depreciation Book Value Year 1 Year 2 Year 3 Year 4 Total $ 0