Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

OPO 12. Nanki Corporation purchased equipment on January 1, 2015. for $970.000. In 2015, 2016, and 2017, Nanki depreciated the asset on a straight-line basis

image text in transcribed

OPO 12. Nanki Corporation purchased equipment on January 1, 2015. for $970.000. In 2015, 2016, and 2017, Nanki depreciated the asset on a straight-line basis with an estimated useful life of ten years and a $45,000 residual value. In 2018, due to changes in technology. Nanki revised the useful life to a total of eight years with no residual value. What depreciation would Nanki record for the year 2018 on this equipment? (3 pts) 13. Prepare journal entries to record the following transactions of Daisy King Ice Cream Company. If an entry is not required, state "No Entry." (2 pts each) 1. Started business by issuing 15,000 shares of capital stock for $2.50 per share. 2. Purchased equipment for $10,500, paying $3,000 down and signing a two-year, 8% note for the balance. 3. Paid weekly wages, $2,650. 4. Recorded depreciation on equipment, $685. 5. Signed a franchise agreement to pay franchise fees of 2% of sales. 6. Purchased $1,200 of supplies on account. 7. Recorded sales on account of $6,200 for the first month. 8. Paid franchise fees due on first month's sales. 9. Purchased a three-year insurance policy of $7,200 and paid six months' in advance. 10. Paid for supplies previously purchased on account. Page 4 of 9

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

Financial Accounting For School Administrators Tools For School

Authors: Ronald E. Everett, Donald R. Johnson, Bernard W. Madden

3rd Edition

1610487710, 978-1610487719

More Books

Students also viewed these Accounting questions

Question

Explain Ferranti Effect and how to reduce it

Answered: 1 week ago

Question

Assess various approaches to understanding performance at work

Answered: 1 week ago

Question

Provide a model of performance management

Answered: 1 week ago