Question
In: Accounting
Armada Ski’s year end is December 31. Some of the 2019 transactions are as follows: March...
Armada Ski’s year end is December 31. Some of the 2019 transactions are as follows:
March 1 Paid $135,000 cash to purchase the following two assets:
Market Est. Useful Est. Residual
Asset Value Life Value
Land $80,000 - -
Warehouse 60,000 20 years $5,000
Armada Ski will use the straight-line amortization method for the warehouse.
April 1 Purchased a used delivery van for $20,000 cash. The van sells for $30,000 when new. The van is expected to be used for 7 years and driven 200,000 km. The estimated salvage value is $5,000. It will be amortized using the units-of-production method.
April 1 Installed heavy-duty suspension costing $2,000 that will enable the van to pull the Armada Ski trailer to various ski demo days at local ski hills.
June 30 Paid a local glass shop $400 to replace the windshield which had been damaged by a pair of skis.
Dec. 31 Recorded amortization on the assets. The van was driven 17,000 kilometers since it was purchased.
Record the journal entries for the above transactions of Armada Ski Shop. Round all amounts to the nearest dollar. Explanations are not required.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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cash collections to 31/12/2020
AB
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$600,000
$1,400,000
$450,000
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contract price
costs incurred to 31/12/2020
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billing to 31/12/2020
cash collections to 31/12/2020
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$400,000
$1,200,000
$300,000
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Required:
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gross profit (loss) of the project before deducting selling,
general, and administrative expenses for the year ended 31 December
2020 using the percentage-of-completion method.(based on estimated
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