Presented below are some business transactions that occurred during 2017 for ABC Company: Instructions: For each situation
Fantastic news! We've Found the answer you've been seeking!
Question:
Presented below are some business transactions that occurred during 2017 for ABC Company:
Transcribed Image Text:
Instructions: For each situation below, identify the assumption, concept or constraint that has been violated, if any and why. If the Journal Entry is incorrect, prepare the entry that should have been made. If no Journal Entry is required, state this. 1. A heavy duty stapler costing $25 is being depreciated over 5 years. The following entry was made: Depreciation Expense-Stapler Accumulated Depreciation-Stapler.. 5 The owner of Tonnee Company took a vacation to France and charged the travel expenses to the company. The following entry was made: Travel Expense. 2. 4,000 Cash. . 4,000 An account receivable has been deemed a bad debt. The following entry was made: Allowance for Doubtful Accounts 9,000 Accounts Receivable. . 9,000 Merchandise Inventory with a cost of $420,000 is reported at its fair value of $510,000. The following entry was made: Merchandise Inventory. . Gain on Fair Value Adjustment of Inventory. 90,000 90,000 5. Equipment worth $75,000 was acquired at a cost of $60,000 from a company that was going out of business. The following entry was made: Equipment.. Cash. . Gain from on Fair Value Adjustment on Equipment 75,000 60,000 15,000 Instructions: For each situation below, identify the assumption, concept or constraint that has been violated, if any and why. If the Journal Entry is incorrect, prepare the entry that should have been made. If no Journal Entry is required, state this. 1. A heavy duty stapler costing $25 is being depreciated over 5 years. The following entry was made: Depreciation Expense-Stapler Accumulated Depreciation-Stapler.. 5 The owner of Tonnee Company took a vacation to France and charged the travel expenses to the company. The following entry was made: Travel Expense. 2. 4,000 Cash. . 4,000 An account receivable has been deemed a bad debt. The following entry was made: Allowance for Doubtful Accounts 9,000 Accounts Receivable. . 9,000 Merchandise Inventory with a cost of $420,000 is reported at its fair value of $510,000. The following entry was made: Merchandise Inventory. . Gain on Fair Value Adjustment of Inventory. 90,000 90,000 5. Equipment worth $75,000 was acquired at a cost of $60,000 from a company that was going out of business. The following entry was made: Equipment.. Cash. . Gain from on Fair Value Adjustment on Equipment 75,000 60,000 15,000
Expert Answer:
Answer rating: 100% (QA)
1 Depreciation of heavy duty stapler Straight line method of depreciation is used here but An asset ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
The following entry was recorded on November 14. At month-end, it was discovered that Supplies Expense should have been debited on November 14 instead of Salaries Expense. Prepare the correcting...
-
The following entry was recorded on January 10. At month-end, it was discovered that on January 10, computer equipment was purchased for $25,000 by borrowing from the bank. Prepare the correcting...
-
The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC): Cash Received from: Customers ........ $660,000 Interest on note receivables .. 12,000...
-
Write a Fortran program that creates an integer array with values -123, -4, 5, 67, 890, and 12345. Prints out the array in several formatted ways. a. Print each element, on its own line, using a...
-
Last month, a large national banks average payment time was 33 days with a standard deviation of 4 days. This month, the average payment time was 33.5 days with a standard deviation of 4 days. They...
-
The velocity profile for steady flow between parallel is parabolic and given by \(u=u_{c}+a y^{2}\), where \(u_{c}\) is the centerline velocity and \(y\) is the distance measured from the centerline....
-
Donna White started her practice as a design consultant on January 1, 2010. During the first month of operations, the business completed the following transactions: Requirements 1. Open the following...
-
Company R owns a 30% interest in Company E, which it acquires at book value. Company E reports net income of $50,000 for 2011 (ignore taxes). There is an inter-company sale of equipment at a gain of...
-
6) Office Automation, Inc. must choose between two copiers, the XX40 or the RH45. The XX40 costs $900 and will last for three years. The copier will require $120 in maintenance each year. The RH45...
-
Evaluate Req for each of the circuits shown in Fig. 2.103. (a) (b) 12 ko
-
Write a total ionic and net ionic equation for the following reaction between Pb2+ and HCl.
-
A sphere of copper has a radius of 8.00cmand is compressed uniformly by a force of 6.0010 8 N. The bulk modulus for copper is14010 9 N/m 2 . Calculate the sphere's change in volume V after...
-
A gallon of dishwashing liquid was priced with a markup of $1.95. If this is 64% markup based on selling price, how much is the cost of the dishwashing liquid?
-
Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in the table below. Time Before Maturity 7 years Par Value $4,000 Bond Rate Payable...
-
Th-232 has atomic mass of 232.038055 u. What is the binding energy per nucleon for this nuclide? The mass of a neutron is 1.0087 amu, the mass of a proton is 1.0073 amu and the mass of an electron is...
-
What are the strategic imperatives driving the evolution of organizational structures in the era of digital transformation, and how do they reconcile traditional hierarchies with the demands for...
-
Youve just learned that the analyst who assembled the projects projected cash flow information used above didnt know his inflows from his outflows. Youve reexamined the source data and determined...
-
After looking at the resources, explain what a spirit image is. Why might looking at a god and/or a human in terms of their spirit be helpful if you want to eliminate some of the divisions between...
-
The records for the Clothing Department of Wei's Discount Store are summarized below for the month of January (HK$ in thousands). Inventory, January 1: at retail HK$25,000; at cost HK$17,000...
-
Condensed financial data of Fairchild SA for 2019 and 2018 are presented below. Fairchild SA INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 Sales...
-
Wie Company has been operating for just 2 years, producing specialty golf equipment for women golfers. To date, the company has been able to finance its successful operations with investments from...
-
Derive the equation of motion and natural frequency for a mass \(m\) on the string that is under constant tension \(T\) as shown in Figure 2.44. Assume small displacements and that \(m\) is much...
-
Continuing Problem 13, the string is stretched to the position shown in Figure 2.45. Calculate the natural frequency of the system using the following parameter values: \(m g=2 \mathrm{lb}, T=50...
-
Derive the equation of motion for a uniform stiff rod restrained from vertical motion by a torsional spring of stiffness \(K\) and two translational springs each of stiffness \(k\), as shown in...
Study smarter with the SolutionInn App