Prepare an amortization schedule and prepare journal
entry (thru year 2020-2024)
E7.13 (LO 4) (Note Transactions at Unrealistic Interest Rates) On
July 1, 2020, Agincourt Inc. made two sales.
1. It sold land having a fair value of $700,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,101,460. The land is carried on Agincourt’s books at a cost of $590,000.
2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $400,000 (interest payable annually).
In: Accounting
PEI Real Estate company believes that their average house price in 2020 of $290,000 is higher than the mean price of all houses sold in 2019 of $270,000. Assuming that their estimate was based on the first 40 sales in 2020 and the population standard deviation of $70,000, test this hypothesis at the 95% confidence interval.
State the hypotheses based on a one-tailed test.
What is the level of significance?
Select a test statistic.
Formulate the decision rule. Sketch this on a graph.
Calculate the test value.
What is the decision?
Does your conclusion change if the 90% confidence interval is selected? Explain.
In: Statistics and Probability
In: Accounting
In: Accounting
What amount must be deposited in an account that earns 10% on January 1, 2017 if an investor wants to withdraw $5,000 January 1 of each year beginning on January 1, 2018 with the last withdrawal being made on January 1, 2021? What if the withdrawals take place on December 31 of each year starting on December 31, 2017 until December 31, 2020? What if withdrawals of $2,500 occur every six months on June 30 and Dec 31 of each year starting on June 30, 2017 until December 31, 2020?
In: Accounting
Trainor Corporation purchased equipment at a cost of $500,000.
The equipment has an estimated residual value of $50,000 and an
estimated life of 5 years, or 10,000 hours of operation. The
equipment was purchased on January 1, 2020 and was used 2,500 hours
in 2020 and 2,100 hours in 2021. On January 1, 2022, the company
decided to sell the equipment for $315,000. Trainor Corporation
uses the units-of- production method to account for the
depreciation on the equipment.
Based on this information, the entry to record the sale of the
equipment will show a gain of:
Select one:
A. $45,000
B. $72,000
C. $5,000
D. $22,000
In: Accounting
Brief Exercise 18-11 b (Essay)
The following data are taken from the financial statements of
Colby Company.
|
2020 |
2018 |
|||
| Accounts receivable (net), end of year | $550,000 | $540,000 | ||
| Net sales on account | 4,300,000 | 4,000,000 | ||
| Terms for all sales are 1/10, n/45 |
| 2020 | 2019 | |||||
| Accounts Receivable turnover | 7.9 | times | 7.5 | times | ||
| Average collection period | 46.2 | days | 48.7 | days | ||
(b)
What conclusions about the management of accounts receivable can be
drawn from the accounts receivable turnover and the average
collections period.
In: Accounting
On April 9, Statistics Canada published Labour Force Statistics for March 2020. Between February and March, 2020, employment fell by 5.3% nationwide. Last year, instead, the change in employment between February and March 2019 was 0%.
Using the model discussed in the lecture notes on chapter 6, discuss the impacts that this change in employment will have on GDP, consumption, national saving, the trade balance and the real exchange rate.
Remember that Canada is a small open economy currently running a small trade deficit.
There is no need to upload graphs in this question, simply discuss the impacts in words.
In: Economics
Green Acres Farms just purchased a tractor on January 1, 2020.
The total purchase price (cost) was $600,000.
They expect to use the tractor for 5 years and sell for $100,000.
Assume according to MACRS, they can depreciate tractors for 3 years using 150% declining balance.
Complete the following depreciation questions.
PART A
Fill in the economic depreciation table using the straight-line method.
|
Year |
Remaining value at beginning of year |
Depreciation |
Remaining value at end of year |
|
2020 |
[Q30] |
[Q31] |
[Q32] |
|
2021 |
|||
|
2022 |
[Q33] |
||
|
2023 |
[Q34] |
||
|
2024 |
[Q35] |
In: Accounting
A new van costs $25,000, has an estimated useful life of five years and an estimated salvage value of $5,000 at the end of that time. It is expected that the van will be driven 100,000 miles during its useful or service life.
The Nation Express Company purchases this van on April 1, 2019.
During 2019 the van is driven 13,000 miles and during 2020 it was
driven 21,000 miles. On January 1, 2021, the van is sold for
$7,000.
Calculate the depreciation expense for 2019 and 2020 using:
1. Straight-line
2. Double-declining-balance
3. Units-of-production
In: Accounting