Answer:
D. $6,000
Explanation:
The book value of a new asset includes the purchase price and other related costs that make it ready for use. For Woodstock company, the book value of the new machine will be the buying price of 40,000 plus 1000 transport costs.
Book value = $41,000
The straight-line depreciation method charges equal amounts throughout the life of the asset.
The depreciable amount = asset value - salvage value
=$41,000 - $5000
=$36,000
The depreciation rate = 1/6 x 100
=16.66 %
Annual depreciation = 16.66% x $36,000
=16.66/100 x $36,000
=0.16667 x $36,000
=$6,000
Answer:
B. a debit to Interest Expense for $ 42 comma 750.
C. a credit to Cash of $ 137 comma 750.
Explanation:
Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.
As per given data
Principal Payment = $95,000
First Interest payment = $475,000 x 9% = $42,750
Total Payment = $95,000 + $42,750 = $137,750
Journal Entry for first payment
Dr. Interest Expense $42,750
Dr. Not Payable $95,000
Cr. Cash $137,750
Answer:
D) will be cancelled if not immediately executed at the stated price or better.
Explanation:
A Fill-Or-Kill order can be regarded as
an order that is been made in order
to buy/sell a stock and it must be executed in entirety and immediately. If not executed immediately the order might be cancelled since partial Execution is not part of the process of Fill-Or-Kill order. It should be noted that A fillorkill order will be cancelled if not immediately executed at the stated price or better.
Answer:
$101,200
Explanation:
the cost of land = purchase price of the land + razing expenses - sales of salvaged materials + attorney's fees + broker's fees = $86,000 + $9,700 - $4,400 + $1,500 + $8,400 = $101,200
The cost of the driveways and parking lot are recorded separately (as land improvements), not under cost of land because they can be depreciated.
Architect's fees are generally included in the construction costs of the building, not in the land cost. The architect's fees are covered before the construction starts because you need the blueprints in order to start the construction.
Answer:
b. 30%
Explanation:
The computation of the percentage increased in sales from the previous year to the current year is shown below:
= (Current year Sale - Preceding year Sale) ÷ (Preceding year Sale
)
= ($325,000 - $250,000) ÷ ($250,000)
= ($75,000) ÷ ($250,000)
= 30%
Hence, the correct option is b. 30%
We simply applied the above formula to determine the percentage increased in sales
