For the month of July, Blackfly Ltd. experienced/recorded the following transactions:received a $6000 cash payment for work performed & billed the previousmonth.replanted an area of northern Alberta forest for which it sent out an invoicetotaling $35000.. At the beginning of the month, the company had $2000 of trees in inventoryready for planting.During the month the company purchased $7000 tress for planting⚫ at the end of the month it was left with trees still suitable for planting thatoriginally cost $2500.monthly expenses were: $1500 for office rent; $3500 in misc. expenses;Amortization on the truck and office equipment was calculated to be $1500The income tax rate is 10%.Net Income for the month of July was$12305$5850$17900none of the listed answers are correct$5959$19800

Let's dissect the transactions and figure out the net income for July one step at a time. 1. Got…

Answered: For the month of July, Blackfly Ltd.…

Principles of Accounting Volume 1

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ISBN:9781947172685

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Chapter11: Long-term Assets

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Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...

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For the month of July, Blackfly Ltd. experienced/recorded the following transactions • received a $6000 cash payment for work performed & billed the previous • month. replanted an area of northern Alberta forest for which it sent out an invoice totaling $35000 At the beginning of the month, the company had $2000 of trees in inventory ready for planting. During the month the company purchased $7000 tress for planting • at the end of the month it was left with trees still suitable for planting that originally cost $2500. monthly expenses were: $1500 for office rent; $3500 in misc. expenses; • Amortization on the truck and office equipment was calculated to be $1500 • The income tax rate is 10%. Total expenses for the month of July were $24500 $13000
In June, Blackfly Ltd. received a $6,000 cash payment for work performed & billed the previous month. The company replanted a clear-cut area of northern Alberta for which it sent out an invoice for $20,000. At the beginning of the month the company had $1,000 of trees for planting. During the month the company purchased $2,000 more, and at the end of the month it was left with trees that had cost $1,000. The company's expenses were $1,000 in rent for its office and $3,000 in other expenses. Amortization on the truck and office equipment was calculated to be $1,500. The income tax rate is 10%. Net income for June was O$11,250 none of the listed answers are correct $15,500 $9,900 $10,800
In June, Blackfly Ltd. received a $7,000 cash payment for work performed & billed the previous month. The company replanted a clear-cut area of northern Alberta for which it sent out an invoice for $25,000. At the beginning of the month the company had $2,000 of trees for planting. During the month the company purchased $2,000 more, and at the end of the month it was left with trees that had cost $1,000. The company's expenses were $1,000 in rent for its office and $3,000 in other expenses. Amortization on the truck and office equipment was calculated to be $2.000. The income tax rate is 10%. Total expenses for the month of June were _______________.
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $25,000. On the date of delivery, January 2, the company paid $7,000 on the machine, with the balance on credit at 10 percent interest due in six months. On January 3, it paid $1,300 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,400. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,800. E8-4 Part 2 2. Compute the acquisition cost of the machine.
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $29,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 11 percent interest due in six months. On January 3, it paid $1,400 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,700. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,900. Required: 1. Indicate the effects of each transaction on the accounting equation. Note: Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets". Date January 1 January 1 January 2 January 2 January 3 January 3…
Precision Construction entered into the following transactions during a recent year.January 2 Purchased a bulldozer for $250,000 by paying $20,000 cash and signing a$230,000 note due in five years.January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased onaccount.January 30 Wrote a check for the amount owed on account for the work completed onJanuary 3.February 1 Replaced the seat on the bulldozer and wrote a check for the full $800 cost.March 1 Paid $3,600 cash for the rights to use computer software for a two-year period.Required:1. Analyze the accounting equation effects and record journal entries for each of the transactions.2. For the tangible and intangible assets acquired in the preceding transactions, determine theamount of depreciation and amortization that Precision Construction should report for thequarter ended March 31. The equipment is depreciated using the double-declining-balancemethod with a useful life of five years and $40,000 residual…
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UMPI Corporation purchased conveyor equipment with a list price of $15,000. Presented below are three independent cases related to the equipment. (Round to the nearest dollar.) Instructions: Prepare the general journal entries required to record the acquisition and payment in each of the independent cases below. 6.1 UMPI paid cash for the equipment 8 days after the purchase. The vendor’s credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross. 6.2 UMPI traded in equipment with a book value of $2,000 (initial cost $8,000), and paid $8,500 in cash. The old equipment could have been sold for $1,400 at the date of trade. (The exchange did have commercial substance.) 6.3 UMPI signed an interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time.
On November 1, 2021, Jonas Company established an agency in Laguna sending its merchandise samples costing P31, 500 and a working fund of P18, 000 to be maintained on the imprest basis. During the month, the agency transmitted to the home office sales orders which were billed at P128, 760 of which 50% was collected. A home office disbursement chargeable to the agency is the procurement of office furniture costing P50, 000 which is to be depreciated at 24% per year. The agency paid expenses of P7, 630 and received replenishment from the home office. On November 30, 2021, the agency samples were valued at P20, 150. The gross profit on goods shipped averages 33 1/3% of cost. How much is the net income of the agency for the month of November 2021? a. 25, 752 b, None of the above c. 6, 772 d. 12, 210 e. 5, 772
O'Connor Company ordered a machine on January 1 at a purchase price of $95,000. On the date of delivery, January 2, the company paid $24,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $1,000 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $5,700. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $10,200. Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the…
O'Connor Company ordered a machine on January 1 at a purchase price of $100,000. On the date of delivery, January 2, the company paid $25,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $1,000 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $6,000. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $10,700. Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the…

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