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

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

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 $24,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 12 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 $2,600. 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 $3,300. E8-4 Part 1 Required: 1. Indicate the effects of each transaction on the accounting equation. (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 No effect January 2 Equipment Cash January…
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 $24,000. On the date of delivery. January 2, the company paid $8,000 on the machine, with the balance on credit at 11 percent interest due in six months. On January 3, it paid $800 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,200. 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. 3. Compute the depreciation expense to be reported for Year 1. Depreciation expense
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…
On March 1, Bartholomew Company purchased a new stamping machine with a list price of $88,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $3100; sales tax paid, $6,720, installation costs, $1,900; routine maintenance during the first month of operation, $3,000. The cost recorded for the machine was:
The controller for Nina Group reviewed the following large transactions this month for the company: ● Purchase of a forklift to use in the warehouse: $32,000 (8-year life, depreciated on a straight-line basis, recorded monthly). ● Purchase of materials for use in the production of wheelbarrows (the company’s primary product): $114,000 (all was used in production this month, and all units produced were sold). ● Recognized payroll costs for this month’s production, office, and administrative employees: $45,000 (one-third for each category). ● Investment in mutual funds (with excess cash): $65,000. What dollar amount from these transactions would be recorded as an expense this month? What dollar amount would still be listed as an asset at the end of the month?
White mountain supply company purchases warehouse shelving for 18,400. Shipping charges were $ 370 and assembly and set up amounted to $575. The shelves are expected to the last nine years and have a scrap value of $800. Use a straight line method of depreciation, answer the questions round your answer to the nearest cent. A- what is the annual depreciation expense in dollars of the shelving? B-what is the accumulated depreciation in dollars after the third year? C-what is the book value of the shelving in dollars after the fifth year?
O'Connor Company ordered a machine on January 1 at a purchase price of $85,000. On the date of delivery, January 2, the company paid $21,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $900 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $5,100. 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 $9,100. 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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