I need answer of this question solution general accounting Jackson's Small Engine Repair Shop, a proprietorship,started the year with total assets of $60,000 and totalliabilities of $40,000. During the year, the businessrecorded $100,000 in repair revenues, $55,000 in expenses,and Mike Jackson, the owner, withdrew $10,000. Jackson'sCapital balance at the end of the year was:A) $65,000B) $35,000C) $55,000D) $45,000

Step 1:Define Shareholders EquityAfter deducting all the liabilities of a company from the assets,…

Answered: Jackson's Small Engine Repair Shop, a…

Principles of Accounting Volume 1

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ISBN:9781947172685

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PB: Johnson, Incorporated, had the following transactions during the year: Purchased a building for...

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Family Services, a small social service nonprofit agency, began operations on January 1, 20X1, with $40,000 cash and $150,000 worth of equipment, on which $60,000 was owed on a note to City Bank. The equipment was expected to have a remaining useful life of 15 years with no salvage value. During its first year of operations, ending December 31, 20X1, Family Services paid or accrued the following: A. Salaries and other personnel costs, $100,000 B. Rent and utilities, $24,000. C. Debt service: interest, $5,500, and payment on long-term note principal, $10,000 D. Capital outlay: additional equipment purchased January 3, $30,000, expected to last 6 years and have a $6,000 salvage value. E. Other current operating items paid with cash, $4,500. There were no prepayals or unrecorded accruals at December 31, 20X1, and no additional debt was incurred during the year. Required Compute for the Family Services agency, for the year ended December 31,…
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a. Blue Company's records show that current and former customers owe the firm a total of $4,300; $640 of this amount has been due for more than a year from two customers who are now bankrupt. b. The equipment, which is still being used in the business, cost $15,900 new; similar used equipment is now worth $10,000. Management estimates that the equipment has been used for one-fourth of its total potential use. c. The land cost Blue Company $12,000; it was recently assessed for real estate tax purposes at a value of $16,000. d. Blue Company's president isn't sure of the amount of the note payable, but he does know that he signed a note. e. Since Blue Company was formed, net income has totaled $32,000, and dividends to stockholders have totaled $22,250. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Assets Cash Accounts receivable Land Equipment Less: Accumulated depreciation Total assets BLUE COMPANY INCORPORATED Balance Sheet October 31, 2022…
Johnson, Incorporated, had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for extraordinary repairs Depreciation expense recorded for the year is $15,000. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Johnsons balance sheet resulting from this years transactions? What amount did Johnson report on the income statement for expenses for the year?
Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
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During the current year, Blake Construction disposed of plant assets in the following transactions:Jan. 6 Equipment costing $18,000 was given to a scrap dealer at no charge. At the date ofdisposal, accumulated depreciation on the office equipment amounted to $16,800.Mar. 3 Blake sold land and a building for $800,000, receiving $100,000 cash and a five-year,12 percent note receivable for the remaining balance. Blake’s records showed thefollowing amounts: Land, $50,000; Buildings, $680,000; Accumulated Depreciation:Building (at the date of disposal), $250,000.Jul. 10 Blake traded in an old truck for a new one. The old truck had cost $26,000, and itsaccumulated depreciation amounted to $22,000. The list price of the new truck was$37,000, but Blake received a $12,000 trade-in allowance for the old truck and paidonly $25,000 in cash. Blake includes trucks in its Vehicles account.Sept. 3 Blake traded in its old computer system as part of the purchase of a new system. Theold system had cost…
Blossom Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,016,000 on March 1, $1,296,000 on June 1, and $3,041,650 on December 31.Blossom Company borrowed $1,115,400 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,469,300 note payable and an 10%, 4-year, $3,155,500 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.)
Wildhorse Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,004,000 on March 1, $1,284,000 on June 1, and $3,055,000 on December 31. Wildhorse Company borrowed $1,163,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,377,000 note payable and an 11%, 4-year, $3,691,000 note payable. Compute avoidable interest for Wildhorse Company. Use the weighted-average interest rate for interest capitalization purposes. (Round weighted-average interest rate to 4 decimal places, e.g. 0.2152 and final answer to 0 decimal places, e.g. 5,275.) Avoidable interest
Bramble Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,968,000 on March 1, $1,248,000 on June 1, and $3,076,020 on December 31. Bramble Company borrowed $1,145,430 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,433,900 note payable and an 10%, 4-year, $3,482,600 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, eg. 7.58%.) Weighted-average interest rate
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