Quick answer of this accounting questions MetroTech Corp has projected the following balances for the end of thefiscal period:Sales: $312,000 Cash: $18,500 Cost of goods sold: $198,000 Accountsreceivable: $45,000 Inventory: $63,000 Selling expenses: $52,000 Interestexpenses: $25,000 Equipment: $156,000 Accumulated depreciation: $89,000What are the total assets at the end of the period?a. $193,500b. $312,000c. $156,000d. $245,000

Step 1: Definition of Total AssetsTotal Assets are the resources owned by a company that have…

Answered: MetroTech Corp has projected the…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.3.2MBA

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Net income for Inkaleb Inc. for 2020 includes the effect of the following transactions involving the sale of fixed assets. Asset Sales Price Cost Gain (Loss)X P20,000 P 80,000 P 10,000Y 25,000 150,000 (18,000)Purchases of fixed assets during 2020 amounted to P340,000. The Accumulated Depreciation account increased P40,000 during 2020. How much is the depreciation expense for 2020?
The asset - vehicle worth £21,200 will be depreciated by 10% at the end of the year. Which nominal accounts should be debited and credited, respectively? a) Debit Depreciation A/c & Credit Non-Current Asset A/c b) Debit Inventory A/c & Credit Depreciation A/c c) Debit Balance Sheet A/c & Credit Profit or Loss A/c
Calculate the asset turnover ratio?
Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Presented below is information related to equipment owned by Concord Company at December 31, 2020. Cost $9,450,000 Accumulated depreciation to date 1,050,000 Expected future net cash flows 7,350,000 Fair value 5,040,000 Assume concord intends to dispose of the equipment in the coming year. it is expected that the cost of the disposal will be $21,000. As of December 31, 2020, the equipment has a remaining useful life of 4 years. (b) prepare the journal entry (if any) to record depreciation expense for 2026. (c) the asset was not sold by december 31, 2026. The fair value of the equipment on that date is $5,565,000. prepare the journal entry (if any) necesarry to record this increase in fair value. it is expected that the cost of disposal is still $21,000.
Presented below is information related to equipment owned by Concord Company at December 31, 2020. Cost $9,450,000 Accumulated depreciation to date 1,050,000 Expected future net cash flows 7,350,000 Fair value 5,040,000 Assume concord intends to dispose of the equipment in the coming year. it is expected that the cost of the disposal will be $21,000. As of December 31, 2020, the equipment has a remaining useful life of 4 years.
On December 31, 2020, Riverbed Inc. has a machine with a book value of $1,410,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,950,000 Less: Accumulated depreciation 540,000 Book value $1,410,000 Depreciation is computed at $90,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) Your answer is correct. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $645,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and…
On December 31, 2020, Riverbed Inc. has a machine with a book value of $ 1,410,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,950,000 Less: Accumulated depreciation 540,000 Book value $ 1,410,000 Depreciation is computed at $ 90,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) A fire completely destroys the machine on August 31, 2021. An insurance settlement of $ 645,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit…
Presented below is information related to equipment owned by Coronado Company at December 31, 2020. Cost $10,080,000 Accumulated depreciation to date 1,120,000 Expected future net cash flows 7,840,000 Fair value 5,376,000 Coronado intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,400. As of December 31, 2020, the equipment has a remaining useful life of 5 years. (a) Your answer is partially correct. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 202O. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Loss on Impairment 3584000 Accumulated Depreciation-Equipment 3584000 eTexthook and Media
On December 31, 2020, Tritt Inc. has a machine with a book value of $940,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,300,000 Less: Accumulated depreciation 00360,000 Book value $0940,000 Depreciation is computed at $60,000 per year on a straight-line basis. Instructions Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. a. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $430,000 was received for this casualty. Assume the settlement was received immediately. b. On April 1, 2021, Tritt sold the machine for $1,040,000 to Yoakam Company. c. On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of…
To calculate the change in Net Working Capital (NWC) during FY24, we first need to find the NWC for both FY23 and FY24 using the formula: NWC=Current Assets−Current Liabilities Step 1: Calculate NWC for FY23 Current Assets (FY23): Cash: 211,000,000 Accounts Receivable: 508,000,000 Inventory: 41,000,000 Total Current Assets (FY23): 760,000,000 Current Liabilities (FY23): Accounts Payable: 622,000,000 Notes Payable: 377,000,000 Total Current Liabilities (FY23): 999,000,000 NWC (FY23)=760,000,000−999,000,000=−239,000,000 Step 2: Calculate NWC for FY24 Current Assets (FY24): Cash: 329,800,000 Accounts Receivable: 626,800,000 Inventory: 100,400,000 Total Current Assets (FY24): 1,057,000,000 Current Liabilities (FY24): Accounts Payable: 531,000,000 Notes Payable: 442,000,000 Total Current Liabilities (FY24): 973,000,000NWC (FY24)=1,057,000,000−973,000,000=84,000,000 Step 3: Calculate the Change in NWC during FY24 Change in NWC=NWC (FY24)−NWC…

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