Cost-Salvage Value/Total units of production Essay

Salta Comp whatever installs a manufacturing machine in its factory at the beginning of the socio-economic class at a cost of $87,000. The machines useful life is estimated to be 5 long time, or 400,000 units of product, with a $7,000 salvage lever. During its second year, the machine produces 84,500 units of product. Determine the machines second year wear and tear infra the units of production method coiffure $16,900Cost-Salvage pass judgment/Total units of production(87,000 7,000)/400,000 = .2.2 * 84,500 = 16,900Amortization event Is the dogmatic allocation of the cost of an intangible asset to set down over its estimated useful life. Big River Rafting pays $310,000 plus $15,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $105,000, a building appraised at $210,000 and equipment appraised at $35,000. Compute the cost that should be allocated to the land. resolving $97,500105,000 + 210,000 + 35,000 = 350,000105,000/350,000 = .3.3 * 325,000 = 97,500Leasehold dissolving agent argon the rights given(p) to the lessee by the lessor of a lease. CopyrightAnswer Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years. A unmingledAnswer Gives its owner exclusive right to manufacture and sell a patented item or to use a process for 20 years. Carmel Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. Compute the depletion expense for the freshman year assuming 418,000 tons were mined. Answer $1,358,5005,900,000 + 600,000 = 6, 500,000Cost Salvage Value/ Total Units of Capacity6,500,000-0/2000000 = 3.253.25 * 418,000 = 1,358,500Cambria Company reports pull in sales of $4,315 million cost of goods interchange of $2,808 million net income of 283 million and average total assets of $2,136. Compute its total asset turnover. Answer 2.02Net Sales/ medium Total Asset4,315/2,136 = 2.02Salta Company installs a manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machines useful life is estimated to be 5 years, or 400,000 units of product, with $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines second year depreciation under the straight-line method. Answer $16,000Cost salvage value/useful life in periods87,000 7,000/5 =16,000A depreciation asset costing $75,000 is purchased on September 1, year 1. The asset is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining- pact depreciation is used. If the asset is interchange on December 31, Year 3 for $13,000, the journal entry to record the sale will include Answer A debit to injury on sale for $2,625.Chapter 11 QuizzesThe current FUTA tax treasure is 0.8% and SUTA tax rate is 5.4%. Both taxes be utilise to the first-class honours degree $7,000 of an employees pay. Assume that an employee earned $8,900. What is the measuring stick of total unemployment taxes the employer must pay on the employees wages? Answer 434.007,000*5.4% = 3787000*0.8% = 56378 + 56 = 434FICA taxes includeAnswer Social Security taxesindebtednessAnswer Must some times be estimatedIf the times enkindle ratioAnswer Increase thusly the risk decreases.Gross pay is?Answer Total compensation earned by an employee before any deductions. A clubs income before interest expense and taxes is $250,000 and its interest expense is $100,000. Its times interest earned ratio is Answer 2.50Income before Interest expense and income taxes/Interest Expense 250,000/100,000 = 2.50Employee pass benefitsAnswer atomic number 18 estimated liabilitiesThe measuring rod of federal income taxes withheld from an employees paycheck is determined by Answer the amount of the employees current earnings fo r the pay period and number of withholding requitals the employee claims. Amount received in advanced from customers for future products or services Answer atomic number 18 liabilitiesA company estimates that a imprimatur expense will be 4% of sales. The companys sales for the current period ar $185,000. The current periods entry to record imprimatur expense is Answer debit warranty expense $7,400 credit estimated warranty liability $7,400 185,000*4% = 7,400An employee earned 62,500 during the year working for an employer. The FICA tax rate for social security is 6.2% and FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8% and SUTA is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employees pay. What is the total unemployment taxes does the employee have to pay? Answer $0.00 Employees do not pay unemployment taxes.FUTA taxes areAnswer unemployment taxes firmament Companys salaried employees earned dickens weeks vacation per year. It pay s $858,000 in total employee salaries for 52 weeks but its employees work only 50. Record Arena Companys periodic journal entry to record the vacation expense Answer Debit vacation benefits expense $17,160 quotation vacation benefits payable $17,160 858,000/50 = 17,160A company sells computers at a selling price of $1,800 each. from each one computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be under the warranty at an average cost of $150 each. During November the company sold 30,000 computers and 400 computers were serviced under the warranty at total cost of 55,000. The equilibrate is the estimated warranty liability depict at November 1 was $29,000. What is the companys warranty expense for the month of November? Answer 90,000(30,000*2%*150) = 90,000A company had fixed interest expense of $6,000, its income before interest expense and any income taxes is $18,000, and its net income is $8,400. The co mpanys Times interest earned ratio equals Answer 3.0Advanced ticket sales totaling $6,000,000 cash in would be recognized as follows Answer Debit Cash Credit Unearned Revenue During August, Arena Company sells $356,000 in product that has a one year warranty. Experience shows that warranty expenses average close to 5% of the selling price. The warranty liability depict has a balance of $12,800 before adjustment. Customers returned product for warranty repairs during the month that used $9,400 in parts and repairs. The entry to record customer warranty repairs is Answer Debit Estimated Warranty financial obligation $9,400 credit Parts Inventory $9,400 Obligations not expected to be paid inside the longer of one year or the companys operating cycle is reported as Answer Long-term liabilityTimes Interest earned computation isAnswer (Net Income + Interest expense + Income taxes)/Interest expense The difference between the amount received from issuing a note payable and the amount re paid is referred to as Answer InterestA contingent LiabilityAnswer is a authorisation obligation that depends on a future event arising from a past transaction or event. In the fibing records of a defendant, impartialitysuitsAnswer should be recorded if payment for damages is probable and the amount brush off be reasonably estimated. A companys fixed interest expense is $8,000 its income before interest expense and income taxes is $32,000. Its net income is $9,600. The companys times interest earned ratio equals Answer 4.0An Estimated LiabilityAnswer Is a known obligation of an uncertain amount that can be reasonably estimated. Recording employee payroll deduction may involveAnswer Liabilities to individual employees, Liabilities to federal and state governments, Liabilities to insurance companies, and Liabilities to labor unions. Chapter 12 QuizzesKevin and Jeannie conformityed This & That as a limited liability company. Unless the member owners elect to be treated otherwise , the IRS will tax the LLC as Answer a coalitionA confederacy that has two classes of provides, general and limited, where the limited partners have no personal liability beyond the amounts they invest in that partnership, and no active role in the partnership, except as specified in the partnership symmetricalness is a Answer Limited PartnershipGroh and Jackson are partners. Grohs chief city balance in the partnership is $64,000, and Jacksons large(p) balance is $61,000. Groh and Jackson have agreed to plough serving equally in income and detriment. Groh and Jackson agree to accept Block with a 20%interest. Block will invest $35,000 in the partnership. The bonus that is granted to Groh and Jackson equals Answer $1,5001.64,000 + 61,000=125,0002. 125,000 + 35,000=160,0003. 160,000*20%= 32,0004.35,000 32,000 = 3,0005. 3,000*1/2= 1,500Badger and Fox are forming a partnership. Badger invests a building that has a market value of $350,000 the partnership assumes responsibility f or a $125,000 note secured by a mortgage on the property. Fox invest $100,000 in cash and equipment that has a market value of $75,000. For the partnership the amount recorded for Badgers large(p) and Foxs ceiling are Answer Badger $225,000 and Fox $175,000Badger 35,000-125,000 = 225,000 Fox 100,000 + 75,000 = 175,000Regina Harrison is a partner in Pressed for Time. An analytic thinking of Reginas capital account indicates that during the most recent year, she withdrew $20,000 from the partnership. Her share of the partnerships net loss was $16,000 and she made an additional rectitude contribution for $10,000. Her capital account ended the year at $150,000, what was her capital balance at the beginning of the year? Answer $176,00010,000 16,000 20,000 = -26,000150,000 (-26,000) = 176,000collins and Farina are forming a partnership Collins is investing in a building that as market value of $80,000. However the building carries a $56,000 mortgage that will be assumed by the part nership. Farina is investing $20,000 cash. The balance of Collins capital scotch will be Answer $24,00080,000 56,000 = 24,000A partnership in which all partners have mutual theatrical and unlimited liability is called Answer General Partnership In the absence of a partnership agreement, the law says that income (and loss) should be allocated based on Answer Equal shares Groh and Jackson are partners. Grohs capital balance is $64,000 and Jacksons capital balance is $61,000. They have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $35,000 in the partnership. The bonus that is granted to Block equals Answer 5,00064,000 + 61,000 = 125,000 125,000 +35,000 = 160,000 160,000*25% = 40,000 40,000 35,000= 5,000 Nee High and Low Jack are partners. They share income and loss equally. Highs beginning partnership capital balance for the current year is $285,000 and Jacks is $370,000. The partnership had net income of $2 50,000 for the year. High withdrew $90,000 and Jack withdrew $100,000. What is Jacks return on equity? Answer 41.3%A partnership agreementAnswer is binding even if it is not in writing.A partnership designed to protect innocent partners from malpractice or negligence claims resulting from acts of another partner is Answer Limited Liability PartnershipPartners withdrawals of assets areAnswer Debited to their withdrawals account Sam, Bart, and Alex are dissolving their partnership. Their partnership agreement allocates each partner 1/3 of all income and losses. The current periods capital account balances are Sam, $45,000 Bart, $37,000 and Alex, $(5,000). After all assets are sold and liabilities are paid, there is $77,000 in cash to be distributed. Alex is unable to pay the deficiency.The journal entry to record the distribution should be Answer Debit Sam, groovy $42,500 Debit Bart, Capital $37,000 Credit Cash $77,000 metalworker, West, and Krug form a partnership. Smith contributes $180,000, West contributes $150,000 and Krug contributes $270,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $175,000 for its first year, what amount of income is credited to Smiths capital account? Answer $52,500Smith 180,000/600,000 = .3.3 * 175,500 = 52,500Smith, West and Krug form a partnership. Smith contributes $180,000, West contributes $150,000, and Krug contributes $270,000. Their partnership agreement calls for the income and loss division to be based on the ratio of capital invested. If the partnership reports income of $175,000 for itsfirst year, what amount of income is credited to Krugs capital account? Answer $78,750Krug 270,000/600,000 = .45.45 * 175,000 = 78,750Smith, West, and Krug form a partnership. Smith contributes $180,000, West contributes $150,000, and Krug contributes $270,000. Their partnership agreement calls for a 5% invest allowance on the partner s capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $174,000 for its first year, what amount of income is credited to Wests capital account? Answer $55,500Smith, West, and Krug form a partnership. Smith contributes $180,000, West contributes $150,000and Krug contributes $270,000. Their partnership agreement calls for a 5% interest allowances on the partners capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $174,000 for its first year, what amount of income credited to Krugs capital account? AnswerBadger and Fox are forming a partnership. Badger invests a building that has a market value of $350,000 the partnership assumes responsibility for a $125,000 note secured by a mortgage on the property. Fox invests $100,000 in cash and equipment that has a market value of $75,000. For the partnership, the amounts recorded for total assets and for total capital account are AnswerIn a partnership agreement, if partners agreed to an interest allowance of 10% annually on each partners investment, the interests allowance Answer Can make up for unequal capital contributionsWhen a partner is unable to pay a capital deficiency Answer The deficiency is absorbed by the remaining partners before distribution of cash. Chase and Hatch are partners and share equally in income or loss. Chases current capital balance is $135,000 and Hatchs is $120,000. Chase and Hatch agree to accept Flax with a 30% interest in the partnership. Flax invests $115,000 in the partnership. The amount credited to Flaxs capital account is Answer $111,000135,000 +120,000 = 255,000255,000 + 115,000 = 370,000370,000*30% = 111,000Chase and Hatch are partners and share equally in income or loss. Chases current capital balance is $135,000 and Hatchs is $120,000. Chase and Hatch agree to accept Fax with a 30% interest in the partnership. Flax invests $115,000 in the partnership. The balance s in Chases and Hatchs capital accounts after admission of the new partner equal AnswerThe following information is available regarding John Smiths capital account in Technology Consulting Group, a general partnership, for a recent year Beginning of the year balance $22,000His share of partnership income $8,500Withdrawals made during the year $6,000What is smiths partner return on equity during the year in question? Answer 36.6%22,000+8,500-6,000=24,5008,500/(22,000+24,500)/2=.3655=36.6%