Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with journal entries 8-13. Assume facts A-F. 8) February 1: The company purchases new equipment for $30,200. The company also pays $200 for

Need help with journal entries 8-13. Assume facts A-F. image text in transcribed
image text in transcribed
8) February 1: The company purchases new equipment for $30,200. The company also pays $200 for shipping the equipment and $500 for equipment installation. The equipment is assumed to have a $1,000 salvage value and 6 years of useful life. 9) February 14: The company writes off a customer's entire $3,600 account balance that is deemed to be uncollectible. 10) February 23: The company declares cash dividends of $34,000 for common shareholders. Assume that the dividend payment will occur on April 23. 11) March 3: The company sells a customer 21 desktop computers at $515 each. Assume that the company uses a LIFO cost flow assumption, and that the company's inventory before the sale had 15 desktop computers that cost $340 each from September 20X1 and 18 computers that cost $350 each from November 20X1. 12) March 29: The company loans their supplier money in exchange for the supplier signing a 4- year, 8%, $44,000 note with interest payments due at each year-end. Assume a 9% market rate for similar risk notes (hint: time value of money is needed). 13) March 30: The company internally develops a copyright by spending $3,700 in research costs, $800 in filing fees, and $6,500 in consulting services. Other information: a) Top Flight Computers rounds all amounts to the nearest dollar. b) The company uses a perpetual inventory system. c) The company uses separate accumulated depreciation accounts for each property, plant, and equipment account (e.g., accumulated depreciation-trucks). d) The company uses an "accumulated amortization" account for applicable intangible assets. e) Assume the income tax rate is 25%. f) Including the stock issued in Journal entry #1, there are 40,000 common shares outstanding for the entire first quarter of 20X2. Assume that there are no preferred shares of stock

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems A Practictioner Emphasis

Authors: Cynthia D. Heagy, Constance M. Lehmann

10th Edition

1891002821, 9781891002823

More Books

Students also viewed these Accounting questions

Question

=+b) Are the conditions for ANOVA met? Why or why not?

Answered: 1 week ago

Question

List the intermediary device categories packet tracer

Answered: 1 week ago