1. Keira's Kar Company purchases a Machine and incurs the following costs:

Purchase Price $250,000

Sales Tax $5,000

Installation Cost $1,500

Electricity Costs for the Year $2,000

Deliver Costs $500

Required:

1. Calculate the Total Cost of the Machine and RECORD the purchase for CASH in the Journal.
2. Keira estimates the MACHINE will have a $10,000 Salvage Value and a 5 Year useful life.Calculate the annual DEPRECIATION EXPENSE and RECORD it in the Journal.
3. After Year 1...What is the Book Value or Carrying Value of the Machine?
4. Assume that after 5 years, and the Machine is FULLY Depreciated (Accumulated Depreciation Balance = $257,000), Keira sells the Machine for $8,000 Cash. Calculate the Gain or Loss on Sale.....and Record the Sale of the Machine in the Journal.

1. Tara's Treasures has both Preferred Stock, $100 Par, 6% Dividend and Common Stock $1 Par. Tara had the following transactions during the year related to her stock:
2. Tara Issues (Sells) 20,000 Shares of Common Stock for $8 per share in Cash.
3. Tara Issues (Sells) 5,000 Shares of Preferred Stock at Par Value for Cash.
4. Tara Issues (Sells) 30,000 Shares of Common Stock for $13 per share in Cash.
5. Tara Issues (Sells) 7,000 Shares of Preferred Stock at Par for Cash.

Required:

Record the Stock Transactions in the Journal.

What would be the Value of Preferred Stock in the Ledger?

Answer rating: 100% (QA)

Keiras Kar Company Total Cost of the Machine Purchase Price 250000 Sales Tax 5000 Installation Cost ... View the full answer