What is the journal entry that would record this transaction

Assignment Help Accounting Basics
Reference no: EM13133562

Spoiled Baby Corp sells baby buggies and has begun an equipment replacement project. You are required to determine the Book Value of each of its fixed assets and make decisions regarding the purchases, trades, and disposition of various assets.

Indicate your recommendation and justify your position for each of the following events.

1. SPC purchased a tube extruder on April 3, 2007 for $27,000. It has a useful life of 10 years and a residual value of $4,000. SPC used double declining balance depreciation for this asset. On February 19, 2012 SPC has an offer to sell this unit for 8,000.

2. SPC purchased a winding machine on July 28, 2012 for $21,000. It has a useful life of 6 years or 12,000 hours. It has a residual value of $3,000. SPC is unsure whether to use straight line depreciation or units of production. It anticipates using the equipment approximately 3000 hours each year.

3. SPC purchased a funneling machine on February 9, 2009 for $72,000. It has a useful life of 5 years and a residual value of $12,000. SPC has used Straight line depreciation for this equipment. SPC has determined that this equipment no longer meets its needs and has decided to exchange this unit for a new model. The new Model has a MSRP of $100,000. On December 28, 2012 SPC will exchange its equipment for the new Model and pay $77,000.

4. SPC has a fully piece of equipment that is currently fully depreciated on its books. This equipment is no longer used and SPC wants to get rid of it. The cost of the equipment is $10,000. The company has been offered $300 for its parts. What is the journal entry that would record this transaction?

Reference no: EM13133562

Previous Q& A

  Preparing cash budget for a corporation

Palmerin Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $30,000. Budgeted cash receipts total $167,000 and budgeted cash disbursements total $171,000. The desired ending cash balance is $50,000.

  Calculate the ph of the final solution

Calculate the pH of the final solution after 250 mL of a 0.157 mol dm-3 solution of HCl is added to 500 mL of a 0.103 mol dm-3 solution of NaCN (Ka HCN = 6.2 × 10-10).

  Operations supply management-learning curve

A time standard was set at 0.20 hour per unit based on the 50th unit produced. If the task has a 90% learning curve what would be the expected time of the 100th, 200th and 400th unit?

  Prepare an income statement for vadercorp for the year

At the start of 2012, Vadercorp reported retained earnings totaling $940,000. Prepare a statement of retained earnings.

  Computing demand curve and profit

Suppose the demand curve for a monopolist is QD = 500 - P, and the marginal revenue function is MR = 500 - 2Q. The monopolist has a constant marginal and average total of $50 per unit.

  How is problem set up using classical-p-value approach

Does the evidence suggest that postpartum women do not get enough sleep? Use =0.05 level of significance. How is the problem set up using the classical and P-value approach?

  Prepare an income statement showing revenues

prepare an income statement showing revenues, expenses, pretax income, income tax expense, and net income for the year ended december 31,2012.

  Calculate the return on equity for both companies

For the ROA, break both of them down into their two component ratios and prove they equal the returns calculated above.

  Exact length of the curve

Find the exact length of the curve defined by y=2[(sqrt(x))^(3)]-1=2x^(3/2)-1 from x=0 to x=2. Set up the integral, use the substitution method( reverse chain rule),

  Transfer taxes to change the title

Cardinal, LLC incurred $20,000 of startup expenses, $3,000 of organizational costs, and paid $10,000 in transfer taxes to change the title (ownership) of a building contributed by one of the LLC's members. Which of the following statements is corr..

Reviews

Write a Review

 

Similar Q& A

  Hoyt''s tax return

Harris moves and Hoyt refunds $1,050 of  the deposit and keeps the remainder to cover $750 which is spent for repairs to the office space  and one week of unpaid rent that amounts to $600. How would this information be reflected on  Hoyt's tax ret..

  Determining transaction by cash flow category

Identify whether each transaction below is an operating, investing or financing activity. Assume the indirect method.

  Total controllable cost variance

A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total contro..

  Compute the gross-margin percentage for each product

the solution of this exercise 16-27 Alternative methods of joint-cost allocation, product-mix decisions. The Southern Oil Company buys crude vegetable oil.

  Amount of the semi-annual interest expense

The bonds were issued for $817,860 cash, which provided the holders an annual yield of 8%. What is the amount of the semi-annual interest expense?

  What is the relationship between fasb requirements

What is the relationship between FASB's requirements for segment-based disclosures and a company's profit centers?

  Accounting objective questions

objective questions: Kovacic Company purchased a computer that cost $10,000. It had an estimated useful life of five years and residual value of $0. The computer was depreciated by the straight-line method and was sold at the end of the fourth year o..

  Explain he circumstances that result different treatments

Explain and justify the difference between the treatment of estimated uncollectible taxes in fund accounting and the treatment of estimated bad debts in commercial accounting.

  Post beginning balances in ledger accounts (t-accounts)

Post beginning balances in ledger accounts (t-accounts) from the December 31, 2009 post-closing trial balance. Prepare journal entries to record each transaction for DeeDee's Designs. (A general journal is provided. Multiple pages will be needed.)

  Pricing the original contract

Calculate the amount of the final price adjustment because of defective pricing based on the Contractor unintentionally overpriced their material costs by $75,000 and under-priced their direct manufacturing labor costs by $50,000. Overhead rates u..

  Debits-credits for the balance sheet and income statements

Your father runs a small auto body shop. He has decided to computerize his records and has asked you to explain the basics of accounting to him so that he can enter the data into his accounting software. 1) Explain to him the rules of debits and c..

  What consolidation worksheet entry would be made

when a company applies the partial equity method in accounting for its investment in a subsidiary and initial value, book values, and fair values of net assets acquired are all equal, what consolidation worksheet entry would be made?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd