Comparing Three Depreciation Methods Newbirth Coatings Company purchased waterproofing equipment on January 2, 2013, for $532,000. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $44,000. The equipment was used for 3,000 hours during 2013, 2,500 hours in 2014, 1,400 hours in 2015, and 1,100 hours in 2016. Required: 1. Determine the amount of depreciation expense for the years ended December 31, 2013, 2014, 2015, and 2016, by (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Output Method Double-Declining-Balance Method 2013 $ $ $ 2014 $ $ $ 2015 $ $ $ 2016 $ $ $ Total $ $ $ 2. What method yields the highest depreciation expense for 2015? 3. What method yields the most depreciation over the four-year life of the equipment?

Please explain in full how to work this problem below.

I need a method to calculate this type of problems. Please help.

Stuart Company is considering investing in two new vans that are expected to generate combined cash inflows of $30,500 per year. The vans’ combined purchase price is $99,000. The expected life and salvage value of each are five years and $21,200, respectively. Stuart has an average cost of capital of 14 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Required

1. Calculate the net present value of the investment opportunity. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.)

2. Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted.

Describing

1.    Accounts receivable—

2.    Note receivable—

3.    Inventories—

4.    Investments—

5.   Prepaid expenses—

6.   Land—

7.   Equipment, net—

8.    Patent—

9.    Note payable—$

10. Interest payable—

11. Common stock—

Tamarisk Manufacturing has old equipment that cost $58,000. The equipment has accumulated depreciation of $27,200. Tamarisk has decided to sell the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) What entry would Tamarisk make to record the sale of the equipment for $32,000 cash? (b) What entry would Tamarisk make to record the sale of the equipment for $15,000 cash?

Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Lon has gathered the following investment information.

1. Five used vans would cost a total of $74,970 to purchase and would have a 3-year useful life with negligible salvage value. Lon plans to use straight-line depreciation.

2. Ten drivers would have to be employed at a total payroll expense of $48,000.

3. Other annual out-of-pocket expenses associated with running the commuter service would include Gasoline $16,000, Maintenance $3,600, Repairs $4,000, Insurance $4,300, and Advertising $2,700.

4. Lon has visited several financial institutions to discuss funding. The best interest rate he has been able to negotiate is 15%. Use this rate for cost of capital.

5. Lon expects each van to make ten round trips weekly and carry an average of six students each trip. The service is expected to operate 30 weeks each year, and each student will be charged $12 for a round-trip ticket. Click here to view PV table.

a)

Determine the annual (1) net income and (2) net annual cash flows for the commuter service. (Round answers to 0 decimal places, e.g. 125.)

Net income    $

Net annual cash flows    $

(b)

Compute(1) the cash payback period and (2) the annual rate of return. (Round answers to 2 decimal places, e.g. 10.50.)

Cash payback period    years

Annual rate of return %

(c)

Compute the net present value of the commuter service. (Round answer to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Net present value

July 2019 Transactions

Date     Description of the Transaction                                                                                                                    

July 1    Borrow $35,000.00 from 1st Bank by signing a 24 month note.

(As an example of how to journalize and post a transaction -- this transaction has already been entered into the General Journal and posted to the General Ledger.)

July 1    Receive $66,900.00 cash from new investors, and issue $66,900.00 of Common Stock to them. July 1       Purchase $36,000.00 of new mowing equipment, paying cash to the mower dealer.

”     July 1    Pay $500.00 cash for the July truck rental.

July 3    Invoice a new customer $3,560.00, for a completed mowing job — customer will pay in 10 days.

July 5 The Board of Directors declares a cash dividend. The total amount of the dividend is $26,000.00. The Date of Record is set as July 15. The Date of Payment is set as July31“

Jul 7.    Pay the employees $6,500.00 for work performed during the 1st week of July.

_          July 10. Complete a mowing job for a new customer — customer pays $915.00 cash for the job.

July 12. Collect $3,500.00 cash from the golf course for special rush mowing job completed on May 31.

July 1.4 Pay the employees $5,000.00 for work performed during the 2nd week of July.

July 15 . Purchase $880.00 of supplies from the mower dealer. The supplies are consumed immediately.

Lenny’s will pay the mower dealer for the supplies in about 2 weeks.

July 15 Collect $3,560.00 on account. The cash that is received is from the new customer for the job

that was completed on July 3.

.          July 17   One of the original mowers purchased in January of 2018 broke down and is repaired by the mower deaIer. The cost of the Mower Repair job is $895.00. Lenny’s will pay the mower dealer in 30 days.

July 19. Purchase for cash $31,000.00 of supplies. These supplies will be consumed over the next 12 months.

July 20 Collect $30,000.00 from the property management company for work performed in June.

July 21. Pay the employees $4,850.00 for work performed during the 3rd week of July.

July 23. Receive a $23,250.00 advance payment from the university. The advance payment  is for 6 months of work which will be performed from August 1, 2019 to January 31,2020.

July 25. Complete a special mowing job for the golf course. The total price for the mowing job is $7,050.00. The golf course pays $1,000.00 cash on this date and will pay the remainder on August 25.

July 27. Complete a mowing job for a new customer — customer pays $400.00 cash for the job. July 27 Pay $880.00 cash to the mower dealer for the supplies purchased on account on July 15. July 28 Pay the employees $5,300.00 for work performed during the 4th week of July.

July 31. Invoice the property management company $25,500.00 for July mowing work. The property management company will pay the invoice on the 20th of next month.

July 31. Pay the cash dividend which was declared on July 5.

Additional Information

Equipment: The $48000.00 beginning balance in the Equipment account relates to the mowing equipment which”was purchased on January 2, 2018. For information related to this mowing equipment see Page 70 in the Solid Footing book. This equipment continues to be used and should be depreciated for the month of July.

The following information relates to the new equipment which was purchased on July 1, 2019:

- The new equipment was placed into service on July 1, 2019 and should be depreciated for the month of July.

-The estimated useful life of the new equipment is 5 years.

- At the end of 5 years, the new equipment will have no future value and will be scrapped. The new equipment will be depreciated using the straight-line method.

Supplies: At the end of July there are $28,150.00 supplies on-hand.

Mowing service at the  University:

The monthly mowing service was provided to the university per the contract signed on April 1, 2019.

Wages due the Employees:   The last wage payment was made to the employees on July 28, 2019. The employees worked on

July 29, 30, and 31. For these three days of work the employees earned $3,175.00 of wages. These three days of wages will be paid to the workers during the first week of August.

Bank Loan:            The interest on the loan from 1st Bank will be paid every three months. The first interest payment

to the bank will be made on September 30, 2019. Lenny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is $860.00.

I NEED A GENERAL JOURNAL FOR THIS INFORMATIONS.

1. The amount of uncollectible accounts at the end of the year is estimated to be $25,000 using the aging of accounts receivable method. The balance in the Allowance of Doubtful Accounts account is an $8,000 credit before adjustment. Assuming no accounts are written off during the period, what will be the amount of bad debts expense for the period?

2. plasma inc. has net credit sales of $500,000 during the year. Based on historical information, Plasma estimates that 2% of net credit sales result in bad debts. At the beginning of the year, Plasma has a credit balance in its Allowance for Doubtful Accounts of $4,000. What amount of bad debt expense should Plasma recognize for the year, assuming no specific customer accounts were written off?

3. Total doubtful accounts at the end of the year is estimated to be $25,000 using the aging of accounts receivables method. If the balance for the Allowance for Doubtful Accounts is a $7,000 debit before adjustment, what will be the amount of bad debt expense for the period?

Please explain thoroughly - I do not understand the relationship between bad debt expense and allowance for doubtful accounts

Adams Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $14,790,000; it will enable the company to increase its annual cash inflow by $5,100,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $34,400,000; it will enable the company to increase annual cash flow by $8,600,000 per year. This plane has an eight-year useful life and a zero salvage value. Required Determine the payback period for each investment alternative and identify the alternative Adams should accept if the decision is based on the payback approach. (Round your answers to 1 decimal place.)

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:

Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income?

A.

Increase in total operating income of $29,000

B.

Increase in total operating income of $114,000

C.

Decrease in total operating income of $9,000

D.

Decrease in total operating income of $140,000

The assembly division of Gannett Watches​, Inc. uses the​ weighted-average method of process costing. Consider the following data for the month of May 2017​:

a. Degree of​ completion: direct​ materials, 80%; conversion​ costs, 35%.

b. Degree of​ completion: direct​ materials, 80​%; conversion​ costs, 40​%.

Requirements

Summarize the total costs to account​ for, calculate the cost per equivalent unit for direct materials and conversion​ costs, and assign costs to the units completed​(and transferred​ out) and units in ending work in process.

Begin by summarizing the total costs to account for.

• How do the three methods of depreciation (include straight line method, units of production and double declining balance method.) affect the income statement and the balance sheet?

International Accounting

What are the market transaction methods? Describe what is done in each of the market transaction methods.

what is the single rate / current rate translation methods? What is the temporal method? Describe what is done in each of the translations.

Instructions

Phillips Brothers Printers (PBP) provides printing services to a wide variety of customers. For most jobs, PBP submits a bid and uses the job cost system to accumulate costs, but bills the bid amount to the customers. They do have several customers who routinely have "out of the ordinary" jobs and PBP bills those on a cost-plus basis, with the customer paying the actual costs plus a predetermined profit percentage on the total cost.

Sally Phillips, controller for PBP, is approached by the company President who asks her to look for ways to charge more of the production costs to the cost-plus jobs. His logic is that since those customers will pay all the costs plus a profit, they can improve their overall profitability by shifting costs from bid jobs to cost-plus jobs.

Answer the following questions:

1. Is the President correct about the increase in overall company profits?
2. What classification of cost is most likely to be able to be increased on the cost-plus jobs? Why?
3. Is what the President proposes ethical? Why or why not?
4. What would you do if you were Sally? Why?
5. If Sally does go along with this proposal, are there risks to the company? What are they?