On May 1, 2021, Q Incorporated entered into the following transactions: a. Paid advertising expense amounting to 120,000 which would cover a period of two years (the current year and the succeeding year) b. Acquired an equipment costing 1 million. PPEs are depreciated over a 5-year useful life using the straight-line method c. A machinery was sold at a loss of 50,000. When the company prepares the income statement for the first quarter of the year, at what amount will these be reflected? a. None of these will be recognized or considered in the preparation of the first quarter income statement b. 15,000 for the advertising expense, 50,000 for the depreciation of equipment and 12,500 for the loss on sale of machinery c. 15,000 for advertising expense d. Answer not among the choices e. 15,000 for advertising expense and 12,500 for the loss on sale of machinery
On May 1, 2021, Q Incorporated entered into the following transactions:
a. Paid advertising expense amounting to 120,000 which would cover a period of two years (the current year and the succeeding year)
b. Acquired an equipment costing 1 million. PPEs are
c. A machinery was sold at a loss of 50,000.
When the company prepares the income statement for the first quarter of the year, at what amount will these be reflected?
None of these will be recognized or considered in the preparation of the first quarter income statement
15,000 for the advertising expense, 50,000 for the depreciation of equipment and 12,500 for the loss on sale of machinery
15,000 for advertising expense
Answer not among the choices
15,000 for advertising expense and 12,500 for the loss on sale of machinery
Step by step
Solved in 2 steps
