A machine costing $75,000 is purchased on September 1, Year 1. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining-balance depreciation is used. If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include:
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An advantage of bond financing is that issuing bonds does no…
An advantage of bond financing is that issuing bonds does not affect owner control.
On January 1, $300,000 of par value bonds with a carrying va…
On January 1, $300,000 of par value bonds with a carrying value of $310,000 is converted to 50,000 shares of $5 par value common stock. The entry to record the conversion of the bonds includes all of the following entries except:
A known obligation of an uncertain amount that can at least…
A known obligation of an uncertain amount that can at least be reasonably estimated is reported as an estimated liability.
Athena Company provides employee health insurance that costs…
Athena Company provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees’ $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:
Athena Company provides employee health insurance that costs…
Athena Company provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees’ $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:
A 10-year bond issue with a $100,000 par value, 8% annual co…
A 10-year bond issue with a $100,000 par value, 8% annual contract rate, with interest payable semiannually means that the issuer must repay $100,000 at the end of 10 years and make 20 semiannual interest payments of $4,000 each.
A liability is incurred when income is earned because income…
A liability is incurred when income is earned because income tax expense is created by earning income.
A company’s has fixed interest expense of $52,000, income ta…
A company’s has fixed interest expense of $52,000, income taxes expense of $121,000, and net income of $281,000. The company’s times interest earned ratio equals:
A company has advance subscription sales totaling $45,000 fo…
A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. When the company mails the first quarterly journal to customers, it should record: