Reference no: EM131789987
Assignment
Sheridan Company is in the process of preparing its financial statements for 2017. Assume that no entries for depreciation have been recorded in 2017. The following information related to depreciation of fixed assets is provided to you.
1. Sheridan purchased equipment on January 2, 2014, for $89,600. At that time, the equipment had an estimated useful life of 10 years with a $4,600 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2017, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $2,800 salvage value.
2. During 2017, Sheridan changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $330,000. It had a useful life of 10 years and a salvage value of $33,000. The following computations present depreciation on both bases for 2015 and 2016.
|
2016
|
2015
|
|
Straight-line
|
$29,700
|
$29,700
|
|
Declining-balance
|
52,800
|
66,000
|
3. Sheridan purchased a machine on July 1, 2015, at a cost of $120,000. The machine has a salvage value of $16,000 and a useful life of 8 years. Sheridan's bookkeeper recorded straight-line depreciation in 2015 and 2016 but failed to consider the salvage value.
Prepare the journal entries to record depreciation expense for 2017 and correct any errors made to date related to the information provided. (Ignore taxes.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
|
Discuss net income for tax purposes
: Both of these amounts were paid on July 30, 2016. Which one of the following represents Quality's 2015 Net Income For Tax Purposes
|
|
Describing the aggregate supply model
: Consider the Aggregate demand - Aggregate Supply model, suppose the economy begins in a short run equilibrium with output equal to potential output.
|
|
At what amount would glens inventory acquired
: If Watkins pays $ 450,000 in cash for Glen, at what amount would Glen's inventory acquired be represented in a December 31, 2012 consolidated balance sheet?
|
|
How much will consumer demand of good to maximize utility
: Consider a consumer with (net utility) function given by U(x;p) = 10 ln(x+1) - px, where x is the quantity of the consumption good consumed, and p > 0.
|
|
Prepare the journal entries to record depreciation expense
: Prepare the journal entries to record depreciation expense for 2017 and correct any errors made to date related to the information provided.
|
|
Why should produce more or less output of corn
: Consider the corn market. Suppose marginal revenue is $25 and marginal cost is $20 and the output is 30 units of corn and profits are at $20,000.
|
|
Prepare the journal entries for the first year
: Prepare the journal entryies for the first year of the stock-option plan
|
|
Prepare journal entries for the transactions listed
: Prepare journal entries for the transactions listed above and post to T-Accounts. Prepare an updated December 31, 2016, trial balance.
|
|
Calculate each companys net profit margin expressed
: Calculate each companys net profit margin expressed as a percent
|