Selected ledger account balances for Business Solutions follow.     For Three Months Ended December 31, 2019   For Three Months Ended March 31, 2020 Office equipment $ 8,400     $ 8,400   Accumulated depreciation—Office equipment   420       840   Computer equipment   20,000       20,000   Accumulated depreciation—Computer equipment   1,250       2,500   Total revenue   31,984       44,500   Total assets   83,560       120,368     Required: 1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2020. Compute amounts for the year ended December 31, 2020, for Depreciation expense—Office equipment and for Depreciation expense—Computer equipment (assume use of the straight-line method). 2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2020? 3. Compute the three-month total asset turnover for Business Solutions as of March 31, 2020. Complete this question by entering your answers in the tabs below.   Required 1 Required 2 Required 3 Compute the three-month total asset turnover for Business Solutions as of March 31, 2020. (Round your answer to 2 decimal places.)         Total asset turnover   times

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Selected ledger account balances for Business Solutions follow.
 

  For Three Months
Ended December 31, 2019
  For Three Months
Ended March 31, 2020
Office equipment $ 8,400     $ 8,400  
Accumulated depreciation—Office equipment   420       840  
Computer equipment   20,000       20,000  
Accumulated depreciation—Computer equipment   1,250       2,500  
Total revenue   31,984       44,500  
Total assets   83,560       120,368  
 


Required:
1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2020. Compute amounts for the year ended December 31, 2020, for Depreciation expense—Office equipment and for Depreciation expense—Computer equipment (assume use of the straight-line method).
2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2020?
3. Compute the three-month total asset turnover for Business Solutions as of March 31, 2020.

Complete this question by entering your answers in the tabs below.

 
  • Required 1
  • Required 2
  • Required 3

Compute the three-month total asset turnover for Business Solutions as of March 31, 2020. (Round your answer to 2 decimal places.)

 
 
 
 
Total asset turnover   times
Selected ledger account balances for Business Solutions follow.
For Three Months
Ended December 31, 2019
$8,400
For Three Months
Ended March 31, 2020
Office equipment
Accumulated depreciation-Office equipment
Computer equipment
Accumulated depreciation-Computer equipment
$
8,400
420
840
20,000
1,250
31,984
83,560
20,000
2,500
44,500
120,368
Total revenue
Total assets
Required:
1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2020. Compute amounts
for the year ended December 31, 2020, for Depreciation expense-Office equipment and for Depreciation expense-Computer
equipment (assume use of the straight-line method).
2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December
31, 2020?
3. Compute the three-month total asset turnover for Business Solutions as of March 31, 2020.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Compute the three-month total asset turnover for Business Solutions as of March 31, 2020. (Round your answer to 2 decimal
places.)
Total asset turnover
times
Transcribed Image Text:Selected ledger account balances for Business Solutions follow. For Three Months Ended December 31, 2019 $8,400 For Three Months Ended March 31, 2020 Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment $ 8,400 420 840 20,000 1,250 31,984 83,560 20,000 2,500 44,500 120,368 Total revenue Total assets Required: 1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2020. Compute amounts for the year ended December 31, 2020, for Depreciation expense-Office equipment and for Depreciation expense-Computer equipment (assume use of the straight-line method). 2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2020? 3. Compute the three-month total asset turnover for Business Solutions as of March 31, 2020. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the three-month total asset turnover for Business Solutions as of March 31, 2020. (Round your answer to 2 decimal places.) Total asset turnover times
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