A1 Consulting Corporation experienced a fire on December 31, 2025, in which its financial records were partially destroyed. It hasbeen able to salvage some of the records and has ascertained the following balances.December 31, 2025December 31, 2024Cash$40,000$15,000Accounts receivable (net)84,000126,000Inventory200,000180,000Accounts payable50,00010,000Notes payable30,00020,000Common stock, $100 par400,000400,000Retained earnings170,000101,000Additional information:1The inventory turnover is 4.2 times.2.The return on common stockholders' equity is 14%. The company had no additional paid-in-capital.3.The accounts receivable turnover is 10.2 times.4.The return on assets is 12.5%.5.Total assets, Dec. 31, 2024 - $604,750.Compute the following values for 2025:(a) Cost of goods sold $(b) Net credit sales(c) Net income$$6A(d) Total assets$

a) Cost of Goods SoldFirst, we need to compute the average inventory. Add the beginning and ending…

Answered: A1 Consulting Corporation experienced a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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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
On January 15, 2017, before the December 31,2016 balance sheet was issued, a building with a cost of $20,000 and a book value of $7,000 was totally destroyed. Insurance proceeds will amount to only $5,000. Does this go on the balance sheet for Dec 31,2016 and if so where?
Swifty Company's delivery truck, which originally cost $83100, was destroyed by fire. At the time of the fire, the balance of the Accumulated Depreciation account amounted to $57200. The company received $47300 reimbursement from its insurance company. The gain or loss as a result of the fire was $21400 gain. $35800 loss. $35800 gain. $21400 loss.
On December 31, 2021, a machine owned by SLP COMPANY was destroyed by a fire. SLP COMPANY incurred removal and clean-up costs of P40,000. The machine had a book value of P450,000 and a fair value of P510,000 at the time of the fire. The machine was insured “new to old” and was replaced by the insurance company with a new one currently selling at P560,000. The loss due to fire to be reported in the 2021 income statement is
On 1 July 2019, it is discovered that the damage to the machine is worse than originallythought. The machine is now considered to be worthless and the recoverable amount ofthe factory as a cash-generating unit is estimated to be $950,000. At 1 July 2019, thecash-generating unit comprises the following assets:$’000Building 500Plant and equipment (including the damaged machine at a carrying amountof $35,000)335Net current assets (at recoverable amount) 2501,085In accordance with HKAS 36 ‘Impairment of Assets’, what will be the carrying amountof Phoenix’s plant and equipment when the impairment loss has been allocated to thecash-generating unit on 1 July 2019?A $262,500B $300,000C $237,288D $280,838
An earth quake damaged a warehouse of Kupal Girl Corporation On December 31, 2011. The entire company and many accounting records stored in the warehouse were completely destroyed. Although the inventory was not insured, a portion could be sold for scrap. Though the use of microfilmed records, the following data were gathered: Inventory, January 1, P1,000,000; Purchases, P4,400,000; Cash sales, P547,200; Collection of accounts receivable (including the amount of recovery) P5,040,000; Accounts receivable- January 1; P420,000; Accounts written off, P17,200; Recovery of accounts written off, P7,200; Allowance for bad debts – January 1, P21,000: Account receivable, December 31, 2011, (net of required allowance), P684,000; Sales returns, P72, 000; Sales discounts, P28,800; Purchase returns, P120,000; Purchase discounts, P24,000; freight in, P43,200; Salvage value of inventory, P1,200,000: Gross profit percentage on sales, 32%. The Company consistently measures doubtful accounts in percent…
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1 QUE A plant asset cost $101700 when it was purchased on January 1, 2011. It was depreciated by the straight-line method based on a 9-year life with no salvage value. On June 30, 2018, the asset was discarded with no cash proceeds. What gain or loss should be recognized on the retirement? $16950 loss. $11300 gain. $22600 loss. No gain or loss. 2 QUE Admire County Bank agrees to lend Vaughn Brick Company $599000 on January 1. Vaughn Brick Company signs a $599000, 8%, 9-month note. What entry will Vaughn Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30? a Notes Payable 634940 Cash 634940 b Notes Payable 599000 Interest Payable 35940 Cash 634940 c Interest Payable 23960 Notes Payable 599000 Interest Expense 11980 Cash 634940 d Interest Expense 35940 Notes Payable 599000…
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On December 31, 2021, after a slight mishap, Wreckless Transport Co. decides to evaluate its delivery truck for possible impairment. The company has the following information as of 12-31-2021: Equipment cost 65,000 Accumulated depreciation to date 20,000 Expected future net cash flows 10,000 Fair Value on 12-31-2021 8,000 Disposal costs 2,000 Fair value of equipment on 12-31-2022 15,000 Assume that the company will continue to use this asset in the future. As of December 31, 2021, the equipment has a remaining useful life of 4 years. INSTRUCTIONS: A Prepare the journal entry, if any, to record impairment at 12-31-2021 B Prepare the journal entry, if any, at December 31, 2022 to record the increase in fair value. C Prepare the journal entry on 12-31-2021 to record impairment assuming that the company intends to dispose of the truck rather than continue to use it. Show work to explain please.
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