Reference no: EM132490845
Tower Company owned a service truck that was purchased at the beginning of 2018 for $36,000. It had an estimated life of three years and an estimated salvage value of $3,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model.
Assets = Equity Revenue - Expense = Net Income Cash Flow
Cash + Machine - Accumulated Depreciation = Common Stock + Retained Earnings
23,000 + 36,000 - 22,000 = 8,000 + 29,000 NA - NA = NA NA
In 2020, Tower Company spent the following amounts on the truck:
Jan. 4 Overhauled the engine for $6,300. The estimated life was extended one additional year, and the salvage value was revised to $2,000.
July 6 Obtained oil change and transmission service, $280.
Aug. 7 Replaced the fan belt and battery, $380.
Dec. 31 Purchased gasoline for the year, $7,800.
31 Recognized 2020 depreciation expense.
Problem 1: Record the 2020 transactions in a statements model like the preceding one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected, leave the cell blank. Round your answers to the nearest dollar amount. Enter any decreases to account balances with a minus sign.
|
Compute the depreciation expense for each of the four years
: Compute the depreciation expense for each of the four years. Delta Machine Company purchased a computerized assembly machine for $135,000 on January 1, 2018.
|
|
Case Study - Bounce Fitness
: Task - Skills and Performance. Part A - Practical Develop your plan. Research, analyse and list the resources that you will require for a business plan
|
|
Show that the angular momentum of an object
: How do you treat different objects with different moments of intertia as they are added to an object that rotates around an axis?
|
|
How do set up and calculate in excel
: How do set up and calculate in excel? What is the NPV? What is the IRR? The managers of Camping World are considering manufacturing pop-up campers.
|
|
Record the transactions in a statements model
: Record the 2020 transactions in a statements model like the preceding one. In the Cash Flow column, use the initials OA to designate operating activity
|
|
Compute what is the annual rate of interest on the loan
: The treasurer of Brandon Blue Sox is seeking a $20,000 loan for 180 days from the Brandon Credit Union,What is the annual rate of interest on the loan?
|
|
Is plant assets held for sale to customers
: One thing that differentiates plant assets from other assets, such as inventory, is that plant assets are held for sale to customers
|
|
KB7040 Sustainable Development for Engineering Practitioners
: KB7040 Sustainable Development for Engineering Practitioners Assignment help and solution, Northumbria University - assessment writing service
|
|
BSBMGT517 Manage Operational Plan Assignment
: BSBMGT517 Manage Operational Plan Assignment Help and Solution - Business College at International House, Australia. Explain the budgeting process
|