Question

please read carefully and show work :)

Q12

A company bought new heating system for $50,000 and was given a trade-in of $2100 on an old heating system, so the company paid $47,900 cash with the trade-in. The old system had an original cost of $44,500 and accumulated depreciation of $40,900. If the transaction has commercial substance, the company should record the new heating system at:

		$2100.
		$50,000.
		$51,500.
		$3600.
		$47,900. The following information is taken from Reagan Company's December 31 balance sheet:        Cash and cash equivalents $ 10,019​ Accounts receivable 78,422​ Merchandise inventories 68,362​ Prepaid expenses 5700​ Accounts payable $ 16,550​ Notes payable 94,638​ Other current liabilities 11,100​ If net sales for the current year were $603,500, the firm's days' sales uncollected for the year is:  (Use 365 days a year.) 47.4 days 41.3 days 69.5 days 159.4 days 79.7 days Q23 On April 12, Hong Company agrees to accept a 60-day, 10%, $5400 note from Indigo Company to extend the due date on an overdue accounts payable. What is the journal entry needed to record the transaction by Indigo Company? Debit Accounts Receivable $5400; credit Notes Payable $5400. Debit Cash $5400; credit Notes Payable $5400. Debit Notes Payable $5400; credit Accounts Payable $5400. Debit Sales $5400; credit Notes Payable $5400. Debit Accounts Payable $5400; credit Notes Payable $5400. A company had net sales of $30,300 and ending accounts receivable of $3900 for the current period. Its days' sales uncollected equals:  (Use 365 days a year.) 38.98 days. 46.98 days. 7.77 days. 62.28 days. 58.18 days. Athena Company provides employee health insurance that costs $14,100 per month. In addition, the company contributes an amount equal to 4% of the employees' $141,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a: Debit to Employee Benefits Expense $19,740. Debit to Employee Retirement Program Payable $5640. Debit to Medical Insurance Payable $14,100. Credit to Employee Benefits Expense $14,100. Debit to Payroll Taxes Expense $19,740.

Answer 1

12) A company bought new heating system for $50,000 and was given a trade-in of $2100 on an old heating system, so the company paid $47,900 cash with the trade-in. The old system had an original cost of $44,500 and accumulated depreciation of $40,900. If the transaction has commercial substance, the company should record the new heating system at:
Market value of new case			$             50,000.00
Cost of old display case	$  44,500.00
Accumulated depreciation	$ (40,900.00)
Book value of old display case		$             3,600.00
Add:  cash paid in exchange		$           47,900.00	$             51,500.00
Loss  on exchange			$               1,500.00
Since the transaction has commercial substance, the loss on exchange is recognized and the new display case should be recorded at	$  50,000.00	Correct Option
The following information is taken from Reagan Company's December 31 balance sheet:
Cash and cash equivalents	10019
Accounts receivable	78422
Merchandise inventories	68362
Prepaid expenses	5700
Accounts payable	16550
Notes payable	94638
Other current liabilities	11100
If net sales for the current year were $603,500, the firm's days' sales uncollected for the year is:  (Use 365 days a year.)
(Accounts receivable ÷ Net annual credit sales) x 365 = Days sales uncollected
Days sales collected = (78422 ÷ 603500) x 365	47.4	days
23) On April 12, Hong Company agrees to accept a 60-day, 10%, $5400 note from Indigo Company to extend the due date on an overdue accounts payable. What is the journal entry needed to record the transaction by Indigo Company?
Debit Accounts Payable $5400; credit Notes Payable $5400.
Accounts Payable decreases (debit) and Short-Term Notes Payable increases (credit) for the original amount owed of $5400
A company had net sales of $30,300 and ending accounts receivable of $3900 for the current period. Its days' sales uncollected equals:  (Use 365 days a year.)
(Accounts receivable ÷ Net annual credit sales) x 365 = Days sales uncollected
Days sales collected = (3900 ÷ 30,300) x 365	46.98	days
Athena Company provides employee health insurance that costs $14,100 per month. In addition, the company contributes an amount equal to 4% of the employees' $141,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:
Debit to Employee Benefits Expense $19,740.	Correct
Accrued Expenses = ($141,000 × 0.04) + $14,100 = $19,740
Debit to employee benefits expense, credit to accrued expenses.