During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following:
Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight line)
Machine A $ 39,000 $ 3,000 6 years $ 24,000 (4 years)
Machine B 53,000 4,000 8 years 36,750 (6 years)
Machine C 76,900 5,200 17 years 50,612 (12 years)
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $14,500 cash.
b. Machine B: Sold on December 31 for $10,725; received cash, $2,300, and a $8,425 interest-bearing (12 percent) note receivable due at the end of 12 months.
c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost.
Required:
Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b. Machine B.
c. Machine C.

Answer:

Merkley Company

a. Journal Entries:

January 1:

Debit Disposal of Machines $39,000

Credit Machine A $39,000

To transfer machine A to the Disposal of Machines account.

Debit Accumulated Depreciation $24,000

Credit Disposal of Machines $24,000

To transfer the accumulated depreciation of machine A to the Disposal of Machines account.

Debit Cash Account $14,500

Credit Disposal of Machines $14,500

To record the proceeds from disposal of machine A.

Debit Loss on Disposal of Assets $500

Credit Disposal of Machines $500

To record loss incurred on disposal of machine A.

b. December 31:

Debit Disposal of Machines $53,000

Credit Machine B $53,000

To transfer machine B to the Disposal of Machines account.

Debit Accumulated Depreciation $36,750

Credit Disposal of Machines $36,750

To transfer the accumulated depreciation of machine B to the Disposal of Machines account.

Debit Depreciation Expense $6,125

Credit Disposal of Machines $6,125

To record the depreciation expense for the year.

Debit Cash Account $2,300

Debit Notes Receivable $8,425

Credit Disposal of Machines $10,725

To record the proceeds from disposal of machine B.

Debit Disposal of Machines $600

Credit Gain from Disposal of Machines $600

To record gain from the disposal of machine B.

c.  January 1:

Debit Disposal of Machines $76,900

Credit Machine C $76,900

To transfer machine C to the Disposal of Machines account.

Debit Accumulated Depreciation $50,612

Credit Disposal of Machines $50,612

To transfer the accumulated depreciation of machine C to the Disposal of Machines account.

Debit Loss on Disposal of Assets $26,288

Credit Disposal of Machines $26,288

To record loss incurred on disposal of machine C.

Explanation:

a) Data and Calculations:

Asset           Original   Residual  Estimated   Accumulated              Book

                    Cost         Value          Life         Depreciation            Balance

                                                                        Straight-line

Machine A  $ 39,000  $ 3,000     6 years    $ 24,000 (4 years)    $15,000

Machine B     53,000     4,000      8 years       36,750 (6 years)    $16,250

Machine C    76,900      5,200    17 years       50,612 (12 years)  $26,288

b) Machine B recorded a gain on disposal because it was sold on December 31 of the current year.  Thus the last year's depreciation expense must be provided.  This automatically turned the difference between net book value and disposal proceeds into a disposal gain.

The mean value of land and buildings per acre from a sample of farms is ​$1400​, with a standard deviation of ​$200. The data set has a​ bell-shaped distribution. Assume the number of farms in the sample is 74. ​
(a) Use the empirical rule to estimate the number of farms whose land and building values per acre are between ​$1200 and ​$1600.
(b) If 29 additional farms were​ sampled, about how many of these additional farms would you expect to have land and building values between ​$1200 per acre and ​$1600 per​ acre?

Which of the following statements about the operation of a C corporation is correct?

On an average hourly basis, how much does Butcher Enterprises spend on wages and benefits, respectively, in dollars?

Which staff member usually does the work of both a front desk clerk and an accounting clerk?
A. Controller
B. Credit manager
C. Accounts receivable clerk
D. Night auditor

Slamburger's sells three cheeseburgers for every three regular hamburgers. A cheeseburger sells for $4.75 with a variable cost of $2.00. A regular hamburger sells for $4.25 with a variable cost of $1.75. What is the weighted average contribution margin

For each of the following pairs of goods, state whether the cross-price elasticity is likely positive, negative, or zero. Explain your answers.
a. Hulu and Netflix.
Close to zero. While they are substitutes they are not close substitutes.
Negative. They are complements.
Positive. They are close substitutes.
b. Tortilla chips and salsa.
Close to zero. While they are substitutes they are not close substitutes.
Negative. They are complements.
Positive. They are close substitutes.
c. Movie and popcorn.
Positive. They are close substitutes.
Close to zero. While they are substitutes they are not close substitutes.
Negative. They are complements.
d. Running shoes and high heels.
Negative. They are complements.
Positive. They are close substitutes.
Close to zero. While they are substitutes they are not close substitutes.

Puffin Industries acquired all of Sunset Coast Digital's stock on January 1, 2014, for $3,500,000, $2,100,000 in excess of book value. At that time, Sunset Coast's inventory (LIFO) was overvalued by $500,000 and its plant assets (10-year life) were overvalued by $1,000,000. The remaining excess of cost over book value is attributed to undervalued identifiable intangible assets being amortized over 20 years. Sunset Coast depreciates plant assets and amortizes intangibles by the straight-line method. During 2014 and 2015, Sunset Coast reported total net income of $650,000 and paid out 50 percent in dividends. Puffin carries its investment in Sunset Coast using the complete equity method. Sunset Coast's inventory increased each year since it was acquired by Puffin, and Sunset Coast's reported net income for 2016 was $200,000, and dividends totaled 50 percent of reported income.

Required:
a. Compute Puffin's 2016 equity in net income of Sunset Coast.
b. Compute the balance in the Investment in Sunset Coast account at December 31, 2016, after all equity method entries have been booked.
c. Prepare the working paper eliminating entries needed in consolidation at December 31, 2016.

Your uncle Abdallah is celebrating his 33th birthday today and wants to start saving for his retirement at the age of 63. He wants to be able to withdraw AED 100,000 from his saving account on each birthday for 20 years following his retirement. The first withdraw will be on his 64th birthday. Your uncle intends to invest his money in a local bank in Abu Dhabi that offers 7% interest rate per year. He wants to make equal payments on each birthday into the account established in the local bank for his retirement fund.
1. If your uncle starts making these deposits on his 33th birthday and continues to make deposits until he is 63, what amount must he deposit annually to be able to make the desired withdrawals at retirement?
2. If your uncle has just inherited a large sum of money, so instead of making equal payments, he has decided to pay one lump sum payment on his 33th birthday to cover his retirement needs. What amount does he have to deposit?
3. If your uncle’s employer informs your uncle that he will contribute AED 1,000 to your uncle account every year. Also, if your uncle expects AED100,000 from another investment on his 53th birthday, which he will also put into the retirement account. What amount must he deposit annually now to be able to make the desired withdrawals at retirement.

Present and future value tables of $1 at 3% are presented below:

N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1
1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000
2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087
3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347
4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861
5 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710
6 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971
7 1.22987 0.81309 7.6625 6.23028 7.8923 6.41719
8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028
9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969
10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611
11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020
12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262
13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400
14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496
15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607
16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794

You want to invest $20,000 today to accumulate $22,500 to buy a car. If you can invest at an interest rate of 3% compounded annually, how many years will it take to accumulate the required amount?

For each item below, indicate whether a debit or credit applies.

a. Decrease in Notes Payable select an option
b. Increase in Dividends select an option
c. Increase in Common Stock select an option
d. Increase in Unearned Rent Revenue select an option
e. Decrease in Interest Payable select an option
f. Increase in Prepaid Insurance select an option
g. Decrease in Salaries and Wages Expense select an option
h. Decrease in Supplies select an option
i. Increase in Revenues select an option
j. Decrease in Accounts Receivable

A relocation of a short stretch of rural highway feeding into Route 390 northwest of Dallas is to be made to accommodate new growth. The existing road is now unsafe, and improving it is not an alternative. Alternate new route locations are designated as East and West. The initial investment by government highway agencies will be $3, 950,000 for East and $5, 500,000 for West. Annual highway maintenance costs will be $120,000 for East and 590,000 for the shorter location West. Relevant annual road user costs, considering vehicle operation, time end route, fuel, safety, mileage, and so on, are estimated as $880,000 for East and only $690,000 for West. Assume a 20 year service life and i = 7 %. C
1. What is the present worth of the benefits and costs of route West over route East? PW benefits of route West over route East: $ PW costs of route West over route East: $ Carry all interim calculations to 5 decimal places and then round your Final answer to the nearest dollar. The tolerance is plusminus 50. Using incremental D/C ratio analysis, which alternative should be selected?
2. Compute the appropriate B/C ratio(s) and decide whether East or West should be constructed.

a. Fethe's Funny Hats is considering selling trademarked, orange-haired curly wigs for University of Tennessee football games. The purchase cost for a 2-year franchise to sell the wigs is $20,000. If demand is good (40% probability), then the net cash flows will be $27,000 per year for 2 years. If demand is bad (60% probability), then the net cash flows will be $6,000 per year for 2 years. Fethe's cost of capital is 13%. What is the expected NPV of the project?

b. If Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000. In this case, the cash flows that occurred in Years 1 and 2 will be repeated (so if demand was good in Years 1 and 2, it will continue to be good in Years 3 and 4). Write out the decision tree. Note: The franchise fee payment at the end of Year 2 is known, so it should be discounted at the risk-free rate, which is 4%. Use decision-tree analysis to calculate the expected NPV.

(D)
Life membership fees received by a club is
A. Revenue receipt
(B)
(C) Both (A) and (B)
(D)
Capital receipt
None of these​

Alpha Industries is considering a project with an initial cost of $8.2 million. The project will produce cash inflows of $1.93 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.67% and a cost of equity of 11.31%. The debt-equity ratio is 0.62 and the tax rate is 21%. What is the net present value of the project

Much has been written about how to identify and interpret signs that indicate that a new organizational form is needed. Grinnell and Apple have identified five signs in addition to those previously described in Section 3.625:Management is satisfied with its technical skills, but projects are not meeting time, cost, and other project requirements.There is a high commitment to getting project work done, but great fluctuation in how well performance specifications are met.Highly talented specialists involved in the project feel exploited and misused.Particular technical groups or individuals constantly blame each other for failure to meet specifications or delivery dates.Projects are on time and to specification, but groups and individuals aren’t satisfied with the achievement. Grinnell and Apple state that there is a good chance that a matrix structure will eliminate or alleviate these problems. Do you agree or disagree? Does your answer depend on the type of project? Give examples or counterexamples to defend your answers.

true or false ,The first step in composing a message is to identify its purpose

Pilot plus Pens is deciding when to replace its old machine. The old machine’s current salvage value is $2 million. Its current book value is $1 million. If not sold, the old machine will require maintenance costs of $400,000 at the end of the year, for the next five years. Depreciation on the old machine is $200,000 per year. At the end of five years, the old machine will have salvage value of $200,000 and a book value of $0. A replacement machine costs $3 million now and requires maintenance costs of $500,000 at the end of each year during its economic life of five years. At the end of five years, the new machine will have a salvage value of $500,000. It will be fully depreciated by the straight-line method. In five years, a replacement machine will cost $3,500,000. Pilot will need to purchase this machine regardless of what the choice it makes today. The corporate tax rate is 34% and the appropriate discount rate is 12%. The company is assumed to earn sufficient revenues to generate tax shields from depreciation. Should Pilot Plus replace the old machine now or at the end of five years? no excel and financial calculator, so please show the answer by hand written and how u get to the numbers

Southern Rim Parts estimates its manufacturing overhead to be $418,500 and its direct labor costs to be $930,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $52,000 for Job 301, $77,000 for Job 302, and $110,000 for Job 303. For the year, actual manufacturing overhead was $464,000 and total direct labor cost was $847,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using pre-determined rates.
Required:
A. How much overhead was assigned to each of the three jobs, 301, 302, and 303?
B. What was the over- or underapplied manufacturing overhead for year 1?

The following transactions apply to Jova Company for Year 1, the first year of operation:

a. Issued $17,000 of common stock for cash.
b. Recognized $63,000 of service revenue earned on account.
c. Collected $56,400 from accounts receivable.
d. Paid operating expenses of $36,600.
e. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account.

The following transactions apply to Jova for Year 2:

a. Recognized $70,500 of service revenue on account.
b. Collected $64,400 from accounts receivable.
c. Determined that $860 of the accounts receivable were uncollectible and wrote them off.
d. Collected $300 of an account that had previously been written off.
e. Paid $48,100 cash for operating expenses.
f. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account.

Required:
a. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange).
b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows.
c. Prepare closing entries and post these closing entries to the T-accounts. Prepare the postclosing trial balance.

Joker stock has a sustainable growth rate of 10 percent, ROE of 12 percent, and dividends per share of $1.30. If the PE ratio is 17.0, what is the value of a share of stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Given the following information about a fully amortizing loan, calculate the lender’s yield (rounded to the nearest tenth of a percent): loan amount: $166,950; term: 30 years; interest rate: 8%; monthly payment: $1,225.00; discount points: 2.

Unemployment Type Rate (Percent) Frictional 3.2 Cyclical 0.0 Structural 1.1 Total unemployment 4.3 True or False: This economy is not currently at its natural rate of unemployment. gs

Park Corporation is planning to issue bonds with a face value of $710,000 and a coupon rate of 7.5 percent. The bonds mature in 8 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)
Required 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

If the risk-free rate of return is 6%, and if a risky asset is available with a return of 9% and a standard deviation of 3%, what is the maximum rate of return you can achieve if you are willing to accept a standard deviation of 2%

Assume that you have a $100,000 account and you are willing to risk 5% of your capital on an idea. You determine that the there is $4 of risk in your trade. What should be your maximum position size

The following is a condensed version of the comparative balance sheets for Tamarisk Corporation for the last two years at December 31.
2020 2019
Cash $ 354,000 $ 156,000
Accounts receivable 360,000 370,000
Investments 104,000 148,000
Equipment 596,000 480,000
Accumulated Depreciation-Equipment (212,000 ) (178,000 )
Current liabilities 268,000 302,000
Common stock 320,000 320,000
Retained earnings 614,000 354,000
Additional information:
Investments were sold at a loss of $20,000; no equipment was sold; cash dividends paid were $60,000; and net income was $320,000.
Prepare a statement of cash flows for 2020 for Swifty Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Food handlers with facial hair must

Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]
[The following information applies to the questions displayed below.]
The Sky Blue Corporation has the following adjusted trial balance at December 31.
Debit Credit
Cash $1,230
Accounts Receivable 2,000
Prepaid Insurance 2,300
Notes Receivable (long-term) 3,000
Equipment 12,000
Accumulated Depreciation $ 2,600
Accounts Payable 5,420
Salaries and Wages Payable 1,000
Income Taxes Payable 2,900
Deferred Revenue 600
Common Stock 2,400
Retained Earnings 1,000
Dividends 300
Sales Revenue 42,030
Rent Revenue 300
Salaries and Wages Expense 21,600
Depreciation Expense 1,300
Utilities Expense 4,220
Insurance Expense 1,400
Rent Expense 6,000
Income Tax Expense 2,900
Total $58,250 $ 58,250
M4-17
Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

At the end of the current year, Leer Company reported total liabilities of $315,000 and total equity of $115,000. The company's debt ratio on the last year-end was:

Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ___________ analysis. Group of answer choices competitor challenger strategic participant industry