Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not.
•Discuss the merits of this exclusion in terms of both efficiency and equity.
•Consider North Carolina, does it exclude necessities, why or why not?
•As with all things, one decision can lead to another. Once necessities are excluded, “necessities” must be defined. Research the tax definition of “necessity” in North Carolina (or another if your state does not exclude) and evaluate it.
In: Economics
Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not. • Discuss the merits of this exclusion in terms of both efficiency and equity. • Consider Texas your own home state, does it exclude necessities, why or why not? • As with all things, one decision can lead to another. Once necessities are excluded, “necessities” must be defined. Research the tax definition of “necessity” in your state (or another if your state does not exclude) and evaluate it.
In: Economics
A study of high managed care states (HMCS) and low managed care states (LMCS) was done. Discuss the comparative findings for profitability and overall financial viability.
In: Nursing
As you know a number of States have passed right-to-work laws while a number of States have no right-to-work laws. Discuss the meaning of the term “right-to-work” and pros and cons of “right-to-work”. What problems, if any, do you see in a company workplace in Missouri where the majority of the workers want to belong to the union, but where right-to-work laws allow non-union workers as well?
In: Operations Management
Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Metlock Company. The following information relates to this agreement.
| 1. | The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. | |
| 2. | The fair value of the asset at January 1, 2020, is $76,000. | |
| 3. | The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $7,000, none of which is guaranteed. | |
| 4. | The agreement requires equal annual rental payments of $24,177.00 to the lessor, beginning on January 1, 2020. | |
| 5. | The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee. | |
| 6. | Metlock uses the straight-line depreciation method for all equipment. |
Click here to view factor tables.
Prepare all of the journal entries for the lessee for 2020 to
record the lease agreement, the lease payments, and all expenses
related to this lease. Assume the lessee’s annual accounting period
ends on December 31. (For calculation purposes, use 5
decimal places as displayed in the factor table provided and round
answers to 2 decimal places, e.g. 5,265.25. Credit account titles
are automatically indented when the amount is entered. Do not
indent manually. Record journal entries in the order presented in
the problem.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
1/1/2012/31/20 |
enter an account title To record the lease on January 1 2020 |
enter a debit amount |
enter a credit amount |
|
enter an account title To record the lease on January 1 2020 |
enter a debit amount |
enter a credit amount |
|
|
(To record the lease) |
|||
|
1/1/2012/31/20 |
enter an account title To record lease liability on January 1 2020 |
enter a debit amount |
enter a credit amount |
|
enter an account title To record lease liability on January 1 2020 |
enter a debit amount |
enter a credit amount |
|
|
(To record lease liability) |
|||
|
1/1/2012/31/20 |
enter an account title for the journal entry on December 31 2020 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on December 31 2020 |
enter a debit amount |
enter a credit amount |
|
|
enter an account title for the journal entry on December 31 2020 |
enter a debit amount |
enter a credit amount |
In: Accounting
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In: Accounting
Comprehensive Accounting Cycle Review
15.ACR Quigley Corporation's trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.
| Debit | Credit | |
|---|---|---|
| Cash | $ 25,500 | |
| Accounts Receivable | 51,000 | |
| Inventory | 22,700 | |
| Land | 65,000 | |
| Buildings | 95,000 | |
| Equipment | 40,000 | |
| Allowance for Doubtful Accounts | $ 450 | |
| Accumulated Depreciation—Buildings | 30,000 | |
| Accumulated Depreciation—Equipment | 14,400 | |
| Accounts Payable | 19,300 | |
| Interest Payable | -0- | |
| Dividends Payable | -0- | |
| Unearned Rent Revenue | 8,000 | |
| Bonds Payable (10%) | 50,000 | |
| Common Stock ($10 par) | 30,000 | |
| Paid-in Capital in Excess of Par—Common Stock | 6,000 | |
| Preferred Stock ($20 par) | -0- | |
| Paid-in Capital in Excess of Par—Preferred Stock | -0- | |
| Retained Earnings | 75,050 | |
| Treasury Stock | -0- | |
| Cash Dividends | -0- | |
| Sales Revenue | 570,000 | |
| Rent Revenue | -0- | |
| Bad Debt Expense | -0- | |
| Interest Expense | -0- | |
| Cost of Goods Sold | 400,000 | |
| Depreciation Expense | -0- | |
| Other Operating Expenses | 39,000 | |
| Salaries and Wages Expense | 65,000 | |
| Total | $803,200 | $803,200 |
Unrecorded transactions and adjustments:
Instructions
(Ignore income taxes.)
(d)
Prepare a retained earnings statement for the year ending December 31, 2020.
(e)
Prepare a classified balance sheet as of December 31, 2020.
Total assets $273,400
In: Accounting
uestion 8
0.71/1
View Policies
Show Attempt History
Current Attempt in Progress
Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Concord Company. The following information relates to this agreement.
| 1. | The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. | |
| 2. | The fair value of the asset at January 1, 2020, is $75,000. | |
| 3. | The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $8,000, none of which is guaranteed. | |
| 4. | The agreement requires equal annual rental payments of $23,522.48 to the lessor, beginning on January 1, 2020. | |
| 5. | The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee. | |
| 6. | Concord uses the straight-line depreciation method for all equipment. |
Click here to view factor tables.
Prepare all of the journal entries for the lessee for 2020 to
record the lease agreement, the lease payments, and all expenses
related to this lease. Assume the lessee’s annual accounting period
ends on December 31. (For calculation purposes, use 5
decimal places as displayed in the factor table provided and round
answers to 2 decimal places, e.g. 5,265.25. Credit account titles
are automatically indented when the amount is entered. Do not
indent manually. Record journal entries in the order presented in
the problem.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
1/1/2012/31/20 |
enter an account title To record the lease on January 1 2020 |
enter a debit amount |
enter a credit amount |
|
enter an account title To record the lease on January 1 2020 |
enter a debit amount |
enter a credit amount |
|
|
(To record the lease) |
|||
|
1/1/2012/31/20 |
enter an account title To record lease liability on January 1 2020 |
enter a debit amount |
enter a credit amount |
|
enter an account title To record lease liability on January 1 2020 |
enter a debit amount |
enter a credit amount |
|
|
(To record lease liability) |
|||
|
1/1/2012/31/20 |
enter an account title for the journal entry on December 31 2020 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on December 31 2020 |
enter a debit amount |
enter a credit amount |
|
|
enter an account title for the journal entry on December 31 2020 |
enter a debit amount |
enter a credit amount |
eTextbook and Media
List of Accounts
In: Accounting
1.) On March 1, 2020, Jefferson Company purchased factory equipment with an invoice price of $90,000. Other costs incurred were freight costs, $2,100; installation wiring and foundation, $2,200; material and labor costs in testing equipment, $700; oil lubricants and supplies to be used with equipment during the life of the asset, $500; fire insurance policy covering equipment for three years, $1,400. The equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life.
(A) Find the Cost of the Equipment.
2.) On March 1, 2020, Soprano Co. purchased factory equipment with an invoice price of $90,000. The equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life.
(B) What is depreciation for 2020 using the double-declining balance method? _______________
What is the book value? ___________ Show all work.
3.) On March 1, 2020, Jefferson Company purchased factory equipment with an invoice price of $90,000. The equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life. Using your calculations from Question #2, calculate depreciation using the double-declining balance method for:
2021 Depreciation _______________________
2021 Book Value ________________________
4.) Ronald Company purchased equipment on May 1, 2020, for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Show all Calculations:
(1) The company uses straight-line depreciation. ___________________
What is depreciation for 2020? ___________________
What is the Accumulated Depreciation in the year 2022? __________________
5.) Ronald Company purchased equipment on May 1, 2020, for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.
The company uses the units-of-activity depreciation method. If 16,000 units are produced in 2020 and 24,000 units are produced in 2021, answer the following; show all work.
2020 Depreciation __________________
2021 Depreciation __________________
12/31/2021 Book Value ____________________
6.) Ronald Company purchased equipment on May 1, 2020 for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. The company uses the double declining balance method of depreciation; answer the following:
2020 Depreciation ______________
2021 Depreciation ______________
2021 Accumulated Depreciation ________
In: Accounting
Recording Purchase of Equipment through Debt and Equity On January 1, 2020, Sidelines Company purchases equipment with an estimated 6-year useful life by making a $28,000 cash payment and issuing a noninterset-bearing note for $96,000 due in two years. The fair value of the the equipment is unknown. An 11% annual interest rate is typical of this transaction. The company uses the effective interest method to amortize interest expense and the straight-line method to estimate depreciation expense. a. Prepare the entry to record the purchase on January 1, 2020. b. Prepare the entry on December 31, 2020, to record (1) interest expense and (2) depreciation expense. c. Indicate the balance sheet presentation related to this transaction as of December 31, 2020. d. Prepare the entry on December 31, 2021, to record (1) interest expense and payment of the note and (2) depreciation expense. e. Assume instead that Sidelines exchanged 2,000 shares of its own $10 par value common stock along with $28,000 cash for the equipment. At the date of the exchange, the stock was trading on the market at $40 per share. Prepare the entry to record the purchase of equipment. Purchase of Equipment with Debt Purchase of Equipment through Equity a. Prepare the entry to record the purchase on January 1, 2020. Date Account Name Dr. Cr. Jan. 1, 2020 Equipment Answer Answer Answer Answer Answer Cash Answer Answer Answer Answer Answer b. Prepare the entry on December 31, 2020, to record (1) interest expense and (2) depreciation expense. Date Account Name Dr. Cr. Dec. 31, 2020 Answer Answer Answer Answer Answer Answer To record interest. Dec. 31, 2020 Answer Answer Answer Answer Answer Answer To record depreciation. c. Indicate the balance sheet presentation related to this transaction as of December 31, 2020. Balance Sheet, Dec 31 2020 Assets: Equipment, net Answer Liabilities: Note payable, net Answer d. Prepare the entry on December 31, 2021, to record (1) interest expense and payment of the note and (2) depreciation expense. Date Account Name Dr. Cr. Dec. 31, 2021 Answer Answer Answer Answer Answer Answer To record interest. Dec. 31, 2021 Answer Answer Answer Answer Answer Answer To record payment on note. Dec. 31, 2021 Answer Answer Answer Answer Answer Answer To record depreciation.
In: Accounting