Question: I would really need help on the boxes that are marked wrong (red). Thank you so much!!!! Need an expert in accounting. On January 1st
I would really need help on the boxes that are marked wrong (red). Thank you so much!!!! Need an expert in accounting.
On January 1st 2021 Kimberly Clark corp. purchases a machine that converts raw materials into diappers, all is automatically done without labour. The savings are important allowing the company to pay a premium to have a custom made machine. The machine is delivered and starts production on April 1st 2021, it is expected to last 10 years with residual value of $200,000. On April 1st Kimberly Clark made a payment of $240,000 and at the time of delivery entered into a debt contract for $730,000 that requires semiannual payments at the end of June and December during the next four years with an interest rate of 8%. The first payment is to be made on June 30th 2021, the company has a fiscal year end of December 31st and uses the declining balance method of depreciation. Required 1: What is the amount recognized in the books as capital asset as of April 1st 2020? $ o Required 2: What is the amount of the semiannual equal payments? $ o Required 3: What is the net book value of the truck reported on December 31st 20207 $ @I o Required 4: If the machine is sold on December 2021 for $820,000 what is the gain (loss) for the sale of the machine? $ o Required 5: What is the net book value of the long term liability reported on December 31st 20227 $ o Required 6: What is the amount of debt cancelled (principal paid off) in the year 20237 $ @I o Required 7: What is the amount of Interest expense reported in the annual income statement of December 31st 20227 $ o Required 8: What is the amount of Interest expense reported in the annual income statement of December 31st 20247 $ o Box Office Corporation sells tickets for cabaret shows, Broadway shows, concerts and other live performances in Toronto. It packages tickets into a season pass good for ten events and customers can select from various theme packages. Each pass costs From $800 to $2,000 depending on seat selection. The average pass cost in the year was $1,440. Box Office sold 415 passes this year. At the end of the year the passes not redeemed (used) are expired and deemed forfeited. Once the season is over all passes expire and cannot be used to grant access to venues. Required 1: Assume there were no other transactions in the year and that 90% of passes have been redeemed, how much is the accrued liability just before doing the AJE of end of the season? $ o Required 2: Assume there were no other transactions in the year and that 96% of passes have been redeemed, how much is the balance of Advances from Customers just before doing the AJE of end of the season? $ (23904 | @ Required 3: Assume there were no other transactions in the year and that 92% of passes have been redeemed, how much is the revenue for the season reported in the Income Statement? $ (549792 | @ Pedro Company has $184,500 of machinery being depreciated over 5 years. There is no estimable residual value after that. After taking 2 years depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residual value remains unchanged. Required 1: What depreciation expense will Pedro record in year 2 when using the straight line method? $ 36900 | @ Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ 27675 | @ Required 3: What depreciation expense will Pedro record in year 2 when using the declining balance method? $ |44280 | @ Required 4: What depreciation expense will Pedro record in year 3 when using the declining balance method? $ | 26568 | @ Required 5: What depreciation expense will Pedro record in year 2 when using the double declining balance method? $ |44280 | @ Required 6: What depreciation expense will Pedro record in year 3 when using the double declining balance method? $ | 26568 | @
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