March 11 Morgan Hartley invested an additional $5,000 into the business. April 1 Disposed of a...

March 11 Morgan Hartley invested an additional $5,000 into the business.

April 1 Disposed of a cash register (Store Equipment) originally costing $675 with a $75 salvage value

Depreciation is computed on a monthly basis with adjusting entries made at the end of each year.

Depreciation after eight years of use was $480 as of December 31. The cash register had an estimated life of 10 years.

Solve and Journalize.

Solutions

Expert Solution

Cost of store equipment = $625

Salvage value = $75

Useful life = 10 year

Annual depreciation = (Cost price - Salvage value)/Useful life

(675 - 75)/10

= 600/10

$60

Depreciation on equipment from January 1 to April 1 of the current year = 60 x 3/12

= $15

Accumulated depreciation on equipment till the date of sale = 480 + 15

= $495

Book value of equipment = Cost price - accumulated depreciation

= 675 - 495

= $180

Loss on equipment disposed = Book value of equipment

= $180

Journal

Date	Account Title and Explanation	Debit	Credit
Mar. 11	Cash	5,000
	Capital, Morgan Hartley		5,000
	(To record additional investment made by owner)
Apr. 1	Depreciation expense	15
	Accumulated depreciation - Equipment		15
	(To record depreciation expense upto April 1)
Apr. 1	Loss on disposal	180
	Equipment		180
	(To record loss on disposal of equipment)

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

a. Molly started the business by depositing $5,000 in a business checking account on April 1...

a. Molly started the business by depositing $5,000 in a business checking account on April 1 in exchange for common stock. b. The company provided services to clients and received $4,215 in cash. c. The company borrowed $1,200 from the bank for the business by signing a note. d. The company paid $1,125 of operating expenses. e. The company purchased a new computer for $3,000 cash to use to keep track of its? customers, starting next month. f. The company...

On April 1 of the current year, Morgan Jones established a business to manage rental property....

On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: Opened a business bank account with a deposit of $29,000 in exchange for common stock. Purchased office supplies on account, $2,880. Received cash from fees earned for managing rental property, $7,800. Paid rent on office and equipment for the month, $3,540. Paid creditors on account, $1,310. Billed customers for fees earned for managing rental property, $6,550. Paid...

March 17-April 1 -2.05 March 18 - April 2 -2.0 March 19 - April 4 -2.02...

March 17-April 1 -2.05 March 18 - April 2 -2.0 March 19 - April 4 -2.02 March 20 - April 5 -2.03 March 22 - April 6 -1.77 March 24 - April 10 -1.41 March 25 - April 12 -1.6 March 27 - April 13 -1.38 March 28 - April 15 -1.38 March 30 - April 16 -1.16 Mean = -1.68 Standard Deviation = 0.34 Do the following. d) For each country test at 5% level if the mean for...

ON APRIL 1, THERE WAS $5,000 OF PREPAID INSURANCE DURING THE YEAR, A TOTAL OF $12,000...

ON APRIL 1, THERE WAS $5,000 OF PREPAID INSURANCE DURING THE YEAR, A TOTAL OF $12,000 WAS PAID OUT IN INSURANCE PREMIUMS. ON MAY 31, THE PREPAID INSURANCE WAS $6,000 CALCULATE THE INSURANCE EXPENSE FOR THE YEAR IF YOU ARE TOLD THAT THE CORPORATION HAS RECEIVED $5,000 FOR AN INSURANCE CLAIM DURING THE YEAR, WHAT WOULD BE THE CHANGE IN THE INSURANCE EXPENSE?

1- Suppose receipts of $20,000 are moved from March to April. (March receipts are now planned...

1- Suppose receipts of $20,000 are moved from March to April. (March receipts are now planned at $94,999 while April receipts are planned at $110,210.) - What change would this have on the total season’s receipt plan? - What change would this have on the total season’s average stock and turnover?

Busiswa Agri Business, has sales of R400 000 in March and R480 000 in April. Forecasted...

Busiswa Agri Business, has sales of R400 000 in March and R480 000 in April. Forecasted sales for May, June and July are R560 000, R640 000 and R800 000 respectively. The firm has an opening cash balance of R40 000 on 1 May and wishes to maintain a minimum cash balance of R40 000 during each month. The following additional information also applies to Busiswa Agri Business • 25% of sales is collected in the month of sale, 50%...

1. You have $10,026.61 in a brokerage account, and you plan to deposit an additional $5,000...

1. You have $10,026.61 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $220,000. You expect to earn 11% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations. ____ years 2. An investment will pay $150 at the end of each of the next 3 years, $250 at...

1. The business began on April 1, 2016 2. The period under consideration is April 1,...

1. The business began on April 1, 2016 2. The period under consideration is April 1, 2016 - April 30, 2016. 3. For the purposes of this assignment, ignore the effects of income tax, property tax, sales tax, and payroll tax . 4. Straight-line depreciation method is used. 5. On April 30, 2016, the company had $150 of Office Supplies and $850 of Lawn & Garden Supplies on hand. 6. The telephone bill for April 2016 for $260 was received...

Ralphy started a business on April 1, 2001, and had the following transactions on April 1:...

Ralphy started a business on April 1, 2001, and had the following transactions on April 1: a. Issued 20,000 shares of $5 par value common stock for $100,000 cash. b. Bought equipment to be used for making products, for $60,000. The equipment has a six-year life and is to be depreciated on a straight-line basis, with no salvage value. c. Paid $4,000 for one year’s rent on a building. d. Bought $30,000 of inventory on credit. e. Bought $25,000 of...

Month Actual Sales Forecast Sales January 8 10 February 11 10 March 12 10 April 14...

Month Actual Sales Forecast Sales January 8 10 February 11 10 March 12 10 April 14 10 -Compute the RSFE, MAD and tracking signals for months January to April?

Subjects