Question
In: Accounting
On July 31, 2018 oxford Inc. purchased a machine by signing an 8-month $40,000 zero interest...
On July 31, 2018 oxford Inc. purchased a machine by signing an 8-month $40,000 zero interest bearing promissory due March 31, 2019. The market rate of interest on similar notes is 6%. The machine will be depreciated using the double-declining method with a useful life of 10 years and salvage value of $ 3,000. Oxford has a 12/31 year-end.
1) Prepare journal entry to record the purchase of the machine on July 31, 2018?
2a) In space provided blow, please prepare the necessary adjusting journal entry at December 31, 2018 related to the short-term note?
2b) In space provided blow, please prepare the necessary adjusting journal entry at December 31, 2018 related to the machine?
3) Prepare the journal entry when the note matures on March 31, 2019?
4a) Calculate the amount of depreciation Oxford would record on the machine during 2019 (i.e., the second year the asset is being depreciate)?
4b) What is the carrying value of the machine at December 31, 2019?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Subject: Accounting On July 31, 2018 oxford Inc. purchased a machine by signing an 8-month $40,000...
Subject: Accounting
On July 31, 2018 oxford Inc. purchased a machine by signing an
8-month $40,000 zero interest bearing promissory due March 31,
2019. The market rate of interest on similar notes is 6%. The
machine will be depreciated using the double-declining method with
a useful life of 10 years and salvage value of $ 3,000. Oxford has
a 12/31 year-end.
1) prepare journal entry to record the purchase of the machine
on July 31, 2018?
2a) In space provided...
Duluth Ranch, Inc. purchased a machine on July 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on July 1, 2018. The cost
of the machine was $34,000. Its estimated residual value was
$10,000 at the end of an estimated 5-year life. The company expects
to produce a total of 20,000 units. The company produced 2,500
units in 2018 and 3,200 units in 2019.
Required:
Part A - Calculate depreciation expense for 2018 and 2019 using
the straight-line method.
Part B - Calculate the depreciation expense for 2018 and 2019
using...
Colah Company purchased $1.8 million of Jackson, Inc., 8% bonds at par on July 1, 2018,...
Colah Company purchased $1.8 million of Jackson, Inc., 8% bonds
at par on July 1, 2018, with interest paid semi-annually. Colah
determined that it should account for the bonds as an
available-for-sale investment. At December 31, 2018, the Jackson
bonds had a fair value of $2.08 million. Colah sold the Jackson
bonds on July 1, 2019 for $1,620,000.
The purchase of the Jackson bonds on July 1.
Interest revenue for the last half of 2018.
Any year-end 2018 adjusting entries....
Colah Company purchased $1.5 million of Jackson, Inc. 8% bonds at par on July 1, 2018,...
Colah Company purchased $1.5 million of Jackson, Inc. 8% bonds
at par on July 1, 2018, with interest paid semi-annually. When the
bonds were acquired Colah decided to elect the fair value option
for accounting for its investment. At December 31, 2018, the
Jackson bonds had a fair value of $1.75 million. Colah sold the
Jackson bonds on July 1, 2019 for $1,350,000.
Required: 1. Prepare Colah's journal entries
for the following transactions:
a. The purchase of the Jackson bonds...
On January 1, Vixen, Inc. purchased a new sleigh packing machine, costing $62,500, by signing a...
On January 1, Vixen, Inc. purchased a new sleigh packing
machine, costing $62,500, by signing a promissory note with 7-year,
4.75% terms with biannual payments. Show the entire amortization
schedule and highlight the total, interest and principal payment
for payment number 13. Also, specify what year/month this payment
occurs.
please show on excel
On January 1, Vixen, Inc. purchased a new sleigh packing machine, costing $62,500, by signing a...
On January 1, Vixen, Inc. purchased a new sleigh packing
machine, costing $62,500, by signing a promissory note with 7-year,
4.75% terms with biannual payments. Show the entire amortization
schedule and highlight the total, interest and principal payment
for payment number 13. Also, specify what year/month this payment
occurs.
Q1 A machine purchased on 1 July 2019 cost $100 000 and has a zero estimated...
Q1 A machine purchased on 1 July 2019 cost $100 000 and has a
zero estimated salvage value. The useful life of the machine is
five years. If the machine was sold on 30 September 2021, what
would its net book value be?
a. $55 000
b. $45 000
c. $50 000
d. $60 000
Q2 An impairment loss is calculated as the amount by which
the:
Select one:
a. carrying amount value of an asset exceeds its original
cost...
On July 9, 2018, Omar Co. purchased a machine for 260,000 SA from Saudi Machine Company...
On July 9, 2018, Omar Co. purchased a machine for
260,000 SA from Saudi Machine Company (SMC). Omar gave SMC 7% note
due in 120 days in payment for the machine. (5
Points)
What is the maturity date of the note?
How much interest will Omar pay to SMC on this note?
Pass the Journal entry for Notes Receivable transaction.
On October 16, 2018, Omar informs us that the company is unable
to pay the note or interest?
What adjusting...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $30,500. Its estimated residual value was
$9,500 at the end of an estimated 5-year life. The company expects
to produce a total of 10,000 units. The company produced 1,150
units in 2018 and 1,600 units in 2019.
Required:
a. Calculate depreciation expense for 2018 and 2019 using the
straight-line method.
b. Calculate the depreciation expense for 2018 and 2019 using
the units-of-production method.
c....
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was...
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The
cost of the machine was $32,000. Its estimated residual value was
$10,000 at the end of an estimated 5-year life. The company expects
to produce a total of 20,000 units. The company produced 1,200
units in 2018 and 1,650 units in 2019.
Required:
Calculate depreciation expense for 2018 and 2019 using the
straight-line method.
Calculate the depreciation expense for 2018 and 2019 using the
units-of-production method.
Calculate depreciation expense...
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