For the month of July, Blackfly Ltd. experienced/recorded the following transactions• received a $6000 cash payment for work performed & billed the previous•month.replanted an area of northern Alberta forest for which it sent out an invoicetotaling $35000At the beginning of the month, the company had $2000 of trees in inventoryready for planting.During the month the company purchased $7000 tress for planting• at the end of the month it was left with trees still suitable for planting thatoriginally cost $2500.monthly expenses were: $1500 for office rent; $3500 in misc. expenses;• Amortization on the truck and office equipment was calculated to be $1500• The income tax rate is 10%.Total expenses for the month of July were$24500$13000

Total costs for the month of June :Cost of Goods sold = opening stock + purchases - Closing Stock…

Answered: For the month of July, Blackfly Ltd.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In June, Blackfly Ltd. received a $7,000 cash payment for work performed & billed the previous month. The company replanted a clear-cut area of northern Alberta for which it sent out an invoice for $25,000. At the beginning of the month the company had $2,000 of trees for planting. During the month the company purchased $2,000 more, and at the end of the month it was left with trees that had cost $1,000. The company's expenses were $1,000 in rent for its office and $3,000 in other expenses. Amortization on the truck and office equipment was calculated to be $2.000. The income tax rate is 10%. Total expenses for the month of June were _______________.
Precision Construction entered into the following transactions during a recent year.January 2 Purchased a bulldozer for $250,000 by paying $20,000 cash and signing a$230,000 note due in five years.January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased onaccount.January 30 Wrote a check for the amount owed on account for the work completed onJanuary 3.February 1 Replaced the seat on the bulldozer and wrote a check for the full $800 cost.March 1 Paid $3,600 cash for the rights to use computer software for a two-year period.Required:1. Analyze the accounting equation effects and record journal entries for each of the transactions.2. For the tangible and intangible assets acquired in the preceding transactions, determine theamount of depreciation and amortization that Precision Construction should report for thequarter ended March 31. The equipment is depreciated using the double-declining-balancemethod with a useful life of five years and $40,000 residual…
On October 1, 2022, the Integrity Main Office established a sales agency in Ortigas.· The main office sent samples of its merchandise amounting to P8,400 and working fund amounting to P72,000 to be maintained on the imprest basis. The samples sent were intended to last until June 1, 2023.· During the first two months of operations, the agency transmitted to the home office sale of goods costing P291,600, but the home office was not able to fill-up 25% of the said transmitted sales order.· Collections from customers amounted to P73,941, net of 2% sales discount.· Payments made by the agency during October and November were as follows: annual rent of P57,600, advertising expense worth P5,600 and utilities amounting to P7,200.· It purchased an equipment worth P9,000 which will be depreciated at 20% per annum.· The gross profit on sales agency order is 20% of sales Net income of the agency for the two months ended November 30, 2022 is: a. P26,866 b.…
The controller for Nina Group reviewed the following large transactions this month for the company: ● Purchase of a forklift to use in the warehouse: $32,000 (8-year life, depreciated on a straight-line basis, recorded monthly). ● Purchase of materials for use in the production of wheelbarrows (the company’s primary product): $114,000 (all was used in production this month, and all units produced were sold). ● Recognized payroll costs for this month’s production, office, and administrative employees: $45,000 (one-third for each category). ● Investment in mutual funds (with excess cash): $65,000. What dollar amount from these transactions would be recorded as an expense this month? What dollar amount would still be listed as an asset at the end of the month?
Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $4,800 to install air-conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,400. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $5,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $820 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. RE
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Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $298,000 cash plus $11,920 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $29,800 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $4,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,200. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,700 to overhaul the loader’s engine, which increased the loader’s estimated useful life by two years. February 17 Paid $1,175 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events.
Champion Contractors completed the following transactions involving equipment. Year 1 January 1 Paid $298,000 cash plus $11,920 in sales tax and $1,900 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $29,800 salvage value. Loader costs are recorded in the Equipment account. January 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,300 to overhaul the loader’s engine, which increased the loader’s estimated useful life by two years. February 17 Paid $1,075 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required:Prepare journal entries to record these transactions and events.
Happy Timber, Inc. owns timberland that is used to supply firewood. The timberland was purchased for $480,000 of which $125,000 relates to the land itself, and it is expected to produce 1,000,000 total pieces of firewood over the next 5 years. If 75,000 pieces of firewood are cut and sold during the year, prepare the journal entries for the depletion and sale of the firewood. *Note: should have two iournal entries.
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price: $35,300; terms: 2/10 n/30; paid within discount period. Transportation-in: $790. Installation: $570. Cost to repair damage during unloading: $660. Routine maintenance cost after eight months: $240. Basket Purchase of Copier, Computer, and Scanner for $46,400 with Fair Market Values Copier, $23,478. Computer, $8,944. Scanner, $23,478. Land for New Warehouse with an Old Building Torn Down Purchase price, $77,500. Demolition of building, $4,540. Lumber sold from old building, $1,570. Grading in preparation for new building, $9,600. Construction of new building, $235,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
Shane Engineering Ltd. Worked out an estimated expenditure of $ 1,20,000 over a period of 8 years on repairs of machinery. The company decided to raise a 'Provision for Repairs and Renewals Account by debiting Profit & Loss Account with a uniform amount every year. The actual expenditure on repairs during the first four years amounted to $ 5,200, $ 12,900; $ 10,700 and $ 16,800. Prepare Provision for Repairs and Renewal Account stating in the footnote how the figures would appear in Balance Sheet and also for treatment in computing of managerial remuneration.
Trinkle Company, Incorporated made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price: $36,100; terms: 2/10 n/30; paid within discount period. Transportation-in: $740. Installation: $580. Cost to repair damage during unloading: $615. Routine maintenance cost after six months: $260. Basket Purchase of Copier, Computer, and Scanner for $51,900 with Fair Market Values Copier, $22,500. Computer, $11,250. Scanner, $28,750. Land for New Warehouse with an Old Building Torn Down Purchase price, $75,700. Demolition of building, $5,070. Lumber sold from old building, $1,090. Grading in preparation for new building, $8,000 Construction of New Building Construction of new building, $231,000 RequiredIn case of office equipment, determine the amount of cost to be capitalized in the asset accounts. In case of basket purchase, determine the amount of cost to be capitalized in the asset accounts. In case of land,…

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