+1-415-670-9189
info@expertsmind.com
Determine yoda annual depreciation expense for this truck
Course:- Accounting Basics
Reference No.:- EM131722668




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question 1 - On 1/1/2009 the Yoda company purchased all of the stock in the first order company at book value Yoda accounts for its investment in the first order using the initial value method and the first order doesn't pay dividends.

On 1/1/2011 yoda company purchased a truck for $80,000 this truck is expected to last 12 years And have a $2000 salvage value. Yoda uses straight line depreciation.

On 1/1/2014 the yoda company sold the truck to the first order company for $75,000. The first order believes the Truck will last 9 years and have a $3000 salvage value. The first order also uses straight line depreciation. The first order gave yoda a 1 year 5% note with principle and interest due 1/1/2015

1/1/2015 the first order paid off the note and interest

On 1/1/2018 the first order sold the truck to the obi-won company for $55000.

Unconsolidated income for yoda and the first order were as follows:


YODA

THE FIRST ORDER

2014

4E+05

43000

2015

4E+05

45000

2016

4E+05

48000

2017

4E+05

43000

2018

4E+05

55000

Required:

A) Determine yoda's annual depreciation expense for this truck

B) Make the journal entry yoda makes when it sells the truck to the first order

C) Make the journal entry the first order makes when it buys the truck from yoda

D) Determine the first order's annual depreciation expense for this truck

E) Make the necessary worksheet entries needed 12/31/14 connected with this truck

F) Determine 2014 consolidated income

G) Make the necessary worksheet entries needed 12/31/15 connected with this truck

H) Determine 2015 consolidated income

I) Determine 2016 consolidated income

J) Determine 2017 consolidated income

K) Make the journal entry the first order makes when it sells the truck in 2018

L) Make the necessary worksheet entries needed 12/31/18 connected with this truck

M) Determine 2018 consolidated income

Question 2 - On 1/1/2000 jack purchased 100% of the outstanding stock of jill at book value Jack accounts for its investment in jill using the initial value method and jill does not pay dividends.

On 10/1/16 jack sold merchandise to jill for $50,000 on credit the merchandise had cost jack $30000.

On 12/31/16 jill had not sold any of the inventory acquired from jack and had not paid off the accounts payable to jack.

In 2017 jill sold 80% of the merchandise acquired from jack for $48000 and paid off jack.

In 2018 jill sold the other 20% of the merchandise from jack for $19000.

Required:

a) Using perpetual inventory record jack's journal entry for the sale to jill

b) Using perpetual inventory record jill's purchase of inventory

c) Make any worksheet entries needed 12/31/16 due to this inventory transaction

d) Unconsolildated, jack reported income of $500000 and jill reported income of $80000 what was consolidated income in 2016?

e) Make any worksheet entries needed 12/31/17 due to the intra-company sale of inventory

f) Unconsolidated jack reported income of 650,000 and jill reported income of $90000 what was consolidated income in 2017?

g) Make any worksheet entries needed 12/31/2018 due to the intra-company sale of inventory

h) Unconsolidated jack reported income of $777000 and jill reported income of $101,000 what was consolidated income in 2018?

i) On january 1 2016 jack had unconsolidated retained earnings of $900,000 and consolidated retained earnings of $3,000,000. What was jack's unconsolidated and consolidated retained earnings on 12/31/16, 12/31/17 and 12/31/18? Note: jack also does not pay dividends.

Attachment:- Questions.rar




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
A manager at Strateline Manufacturing must choose between two shipping alternatives two-day freight and five-day freight. Using five day freight would cost $135 less than us
Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,500 M14 - M16s are sold during the year. (Round answers to 2 decimal places, e.
Audra elects section 179 for asset C. Audra's taxable income from her business would not create a limitation for purposes of the section 179 deduction. Audra elects not to t
Parent sold land to its subsidiary for a gain in 2007. The subsidiary sold the land externally for a gain in 2010. Which of the following statements is true?
Make all journal entries necessary on Candra Christensen's books in 2011, 2012, and 2013 to record the forward contract and the purchase of the lobster. For purposes of esti
Prepare a cash budget for the three-month period ending December 31. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimu
Identify any regulatory framework/s affecting the multinational company you have identified operating in Australia and discuss why and how it affects the company. For exampl
On December 31, 2006, Pack Corp.'s board of directors canceled 50,000 shares of $2.50 par value common stock held in treasury at an average cost of $13 per share. Before rec