Not use ai please On January 1, 2006, Bartell Company sold its idle plant facilityto Cooper, Inc., for $1,050,000. On this date, the plant had adepreciated cost of $735,000. Cooper paid $150,000 cash onJanuary 1, 2006, and signed a $900,000 note bearing interestat 10%. The note was payable in three annual installmentsof $300,000 beginning January 1, 2007. Bartell appropriatelyaccounted for the sale under the installment method. Coopermade a timely payment of the first installment on January 1,2007 of $390,000, which included interest of $90,000 to dateof payment. At December 31, 2007, Bartell has deferred grossprofit of:a. $153,000.b. $180,000.c. $225,000.d. $270,000.

Step 1: Introduction to the Deferred Gross ProfitThe concept of deferred gross profit is used when a…

Answered: On January 1, 2006, Bartell Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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On April 1, 2013, Archer Corporation purchased a new machine on a deferred payment basis. A down payment of $6,000 was made and six monthly installments of $4,000 each are to be made beginning on May 1, 2013. The cash equivalent price of the machine was $28,000. Archer incurred and paid installation costs amounting to $500. The amount to be capitalized as the cost of the machine is a. $28,000b. $22,600c. $28,500d. $24,600
Bilmoco Company purchased a new machine on a deferred payment basis. A down-payment of P100,000 was made and 4 monthly installments of P250,000 are to be made at the end of each month. The cash equivalent price of the machine was P950,000. The entity incurred and paid installation costs amounting to P30,000. What is the amount to be capitalized as cost of the machine?
On January 1, 2025, Pina Colada Corp. purchased equipment for $52560. The company is depreciating the equipment at the rate of $730 per month. The book value of the equipment at December 31, 2025 is: $52560. $8760. $0. $43800.
JBL Co. purchases machinery worth $100,000 on January 1st, 2024. The payment terms are 10% down payment in cash and the remaining amount to be paid over 5 years in equal annual installments at an interest rate of 6%. The machinery has a useful life of 10 years with no residual value. XYZ Corporation uses the straight-line method for depreciation. Record the necessary journal entries on January 1st, 2024, and for the annual depreciation at year-end.
On January 1, 20x1 Buckle Co. purchased a machine that had a list price of ₱46,320. Buckle Co. paid cash of ₱18,000 and executed a one-year non-interest-bearing note for the balance. The going rate of interest was 18%. The machine has a 6-year life and no residual value. Depreciation expense on the SYD basis at the end of 20x1 is:
On January 2, 2022, Lauren Corporation purchased factory equipment for $850,000. In addition, it paid $82,000 in sales tax and $7,000 in installation charges. Shipping costs to ship the equipment to the factory were $2,500 and were paid by Lauren. Lauren paid $300,000 in cash and signed a two-year note for the balance. Required: Prepare the journal entry to record the acquisition of this equipment. Assuming straight-line depreciation, an estimated residual value of $75,000 and an estimated life of 10 years, prepare the journal entry for the depreciation expense for 2021.
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…
During the current year, Hitchcock Developers disposed of plant assets in the following transactions. Feb. 10 office equipment costing $24,000 was given to a scrap dealer at no charge. At the date of disposal, accumulated depreciation on the office equipment amounted to $21,800. Apr. 1 Hitchcock sold land and building to Claypool Associates for $900,000, receiving $100,000 cash and 5 years, 9 percent note receivables for the remaining balance. Hitchcock’s records showed the following amount: Land, $50,000; building, $550,000; accumulated depreciation: building (at the date of disposal), $250,000 Aug. 15 Hitchcock traded in an old truck for a new one. The old truck had cost $26,000, and its accumulated depreciation amounted to $18,000. The list price the new truck was $39,000, but Hitchcock received a $10,000 trade in allowance for the old truck and paid $28,000 in cash. Hitchcock includes trucks in its Vehicles account. Oct. 1 Hitchcock traded in its old computer system as part of the…
During the current year, Ramirez Developers disposed of plant assets in the following transactions:Feb. 10 Office equipment costing $26,000 was given to a scrap dealer at no charge. At the dateof disposal, accumulated depreciation on the office equipment amounted to $25,800.Apr. 1 Ramirez sold land and a building to Claypool Associates for $900,000, receiving$100,000 cash and a five-year, 9 percent note receivable for the remaining balance.Ramirez’s records showed the following amounts: Land, $50,000; Building, $550,000;Accumulated Depreciation: Building (at the date of disposal), $250,000.Aug. 15 Ramirez traded in an old truck for a new one. The old truck had cost $26,000, and itsaccumulated depreciation amounted to $18,000. The list price of the new truck was$39,000, but Ramirez received a $10,000 trade-in allowance for the old truck and paidonly $29,000 in cash. Ramirez includes trucks in its Vehicles account.Oct. 1 Ramirez traded in its old computer system as part of the purchase…
In January 1, 2015, Fun company purchased Company A for $40,000 in cash and paid immediately. Fun company assumed all of Company A's assets and assumed Company A's liabilities. company A has assets valued at $60,000 and liabilities valued at $50,000. question:suppose fun company estimates that company A will only be useful to them for 10 years. What is the annual amortization expense for the goodwill of company Z?

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