On Jan 1, 2022 A&W (A&W) wants to purchase a new Bitcoin Mining Technology. The computers...

 

   

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On Jan 1, 2022 A&W ("A&W") wants to purchase a new "Bitcoin Mining Technology". The computers will cost $130,000 to purchase. A&W purchased the computers on Jan 1, 2022 with cash. The computers will have a useful life that is based upon the hours it is operated. Based upon the manufacturer the computers will last 26,000 hours and at that time the technology will be outdated. A&W purchased the computers on Jan 1, 2022 with cash. A&W has done some estimates and has come up with the following usage: Actual % of Average Hours Total Hours Per Day Year 2022 2023 2024 Total 7,920 33.00% 8,640 36.00% 7,440 31.00% 24,000 33.33% Future: 21.70 23.67 20.38 A&W knows they can't run the computers for 26,000 hours over the next 3 years, and instead can only run them for 24,000 hours due to maintenance that needs to occur. As they are only running them for 24,000 hours A&W will be able to sell some of the parts of the computers for $10,000 in 2025 (hence once the computer is no long usable). Based upon their analysis A&W determined the average usage % per years is 30% A&W is unsure how to expense this asset and needs your help. Current: • Determine the accounting entries for the purchase and depreciation of the ma- chine for each of the following method of depreciation. Assume on Jan 10, 2025 and GNC can sell the machine for $8,000. Determine the journal entry to record the sale. Required - Complete the above using each of the depreciation methods provided below for 2022, 2023, 2024 and 2025: a) Journal Entries - Straight-line b) Journal Entries - Declining balance c) Journal Entries - Activity A&W. currently wants to increase their bank financing and in order to do so they are being required by the bank to provide more accurate financial statements. The bank is requiring that A&W Inc. prepare the following financial statements: a) Statement of Income - Multi-Step format b) Statement of Changes in Equity c) Statement of Financial Position (Current and Non-Current) Using the information provided please prepare the above-required financial statements for year-ending Dec 31, 2022. Task #3 - Financial Statements: A&W Inc. currently wants to increase their bank financing and in order to do so they are being required by the bank to provide more accurate financial statements. The bank is requiring that A&W Inc. prepare the following financial statement: a) Statement of Cash Flow Using the information provided please prepare the above-required financial statement for year-ending Dec 31, 2022. On Jan 1, 2022 A&W ("A&W") wants to purchase a new "Bitcoin Mining Technology". The computers will cost $130,000 to purchase. A&W purchased the computers on Jan 1, 2022 with cash. The computers will have a useful life that is based upon the hours it is operated. Based upon the manufacturer the computers will last 26,000 hours and at that time the technology will be outdated. A&W purchased the computers on Jan 1, 2022 with cash. A&W has done some estimates and has come up with the following usage: Actual % of Average Hours Total Hours Per Day Year 2022 2023 2024 Total 7,920 33.00% 8,640 36.00% 7,440 31.00% 24,000 33.33% Future: 21.70 23.67 20.38 A&W knows they can't run the computers for 26,000 hours over the next 3 years, and instead can only run them for 24,000 hours due to maintenance that needs to occur. As they are only running them for 24,000 hours A&W will be able to sell some of the parts of the computers for $10,000 in 2025 (hence once the computer is no long usable). Based upon their analysis A&W determined the average usage % per years is 30% A&W is unsure how to expense this asset and needs your help. Current: • Determine the accounting entries for the purchase and depreciation of the ma- chine for each of the following method of depreciation. Assume on Jan 10, 2025 and GNC can sell the machine for $8,000. Determine the journal entry to record the sale. Required - Complete the above using each of the depreciation methods provided below for 2022, 2023, 2024 and 2025: a) Journal Entries - Straight-line b) Journal Entries - Declining balance c) Journal Entries - Activity A&W. currently wants to increase their bank financing and in order to do so they are being required by the bank to provide more accurate financial statements. The bank is requiring that A&W Inc. prepare the following financial statements: a) Statement of Income - Multi-Step format b) Statement of Changes in Equity c) Statement of Financial Position (Current and Non-Current) Using the information provided please prepare the above-required financial statements for year-ending Dec 31, 2022. Task #3 - Financial Statements: A&W Inc. currently wants to increase their bank financing and in order to do so they are being required by the bank to provide more accurate financial statements. The bank is requiring that A&W Inc. prepare the following financial statement: a) Statement of Cash Flow Using the information provided please prepare the above-required financial statement for year-ending Dec 31, 2022.

Answer rating: 100% (QA)

a Journal Entries Straightline Depreciation 2022 Debit Bitcoin Mining Technology 130000 Credit Cash 130000 To record the purchase of the Bitcoin Mining Technology Depreciation Expense 130000 10000 3 y... View the full answer