PLEASE CORRECT ALL THE WRONG ANSWERS !! THANK YOU :) && if you can show work for the second problem
Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases only one column may be affected because all of the specific accounts affected by the transaction are included in that category. a. Accrued interest income of $15 on a note receivable. Determined that the Allowance for Bad Debts account balance should be increased b. by $2,450. c. Recognized bank service charges of $22 for the month. d. Received $26 cash for interest accrued in a prior month. e. Purchased 3 units of a new item of inventory on account at a cost of $31 each. Perpetual inventory is maintained. f. Purchased 11 more units on account of the same item at a cost of $36 each. Perpetual inventory is maintained. g. Sold 8 of the items purchased (in e and f) and recognized the cost of goods sold using the FIFO cost flow assumption. Perpetual inventory is maintained. Transaction Current Asset Current Liabilities Stockholders' Equity Net Income a. Interest income +15 b. Interest receivable +15 Allowance for bad debts -2450 Cash -22 Bad debts expense -2450 C. Service charge expense -22 d. Cash +26 Interest receivable -26 e. Inventory +93 Accounts payable +93 Accounts payable +396 f. Accounts payable +396 g. Inventory -273 Cost of goods sold -273 Crow Co. purchased some of the machinery of Hare, Inc., a bankrupt competitor, at a liquidation sale for a total cost of $16,000. Crow's cost of moving and installing the machinery totaled $2,500. The following data are available: Hare's Net Book Value on List Price of Appraiser's the Same Item If Estimate Date of Sale New of Fair Value $10,320 $ 17,000 $14,000 8,120 10,000 5,000 2,440 4,000 3,070 Item Punch press Lathe Welder Required: a. Calculate the amount that should be recorded by Crow Co. as the cost of each piece of equipment. Purchase Price Allocation Punch press $ 11,736 X Lathe 4,191 Welder 2,573 Total $ 18,500 *Red text indicates no response was expected in a cell or a formula-based calculation incorrect; no points deducted. LAILlab aftafella... tani.. baba the denuariable life fore.. a. Recorded $200 of depreciation expense. b. Sold land that had originally cost $8,000 for $13,000 in cash. C. Acquired a new machine under a capital lease. The present value of future lease payments, discounted at 8%, was $11,000. d. Recorded the first annual payment of $2,600 for the leased machine (in part c). e. Recorded a $6,500 payment for the cost of developing and registering a trademark. f. Recognized periodic amortization for the trademark (in part e) using a 40-year useful life. g. Sold used production equipment for $16,000 in cash. The equipment originally cost $46,000, and the accumulated depreciation account has an unadjusted balance of $23,800. It was determined that a $1,800 year-to-date depreciation entry must be recorded before the sale transaction can be recorded. Record the adjustment and the sale. Transaction Asset Liabilities Net Income a. Depreciation expenses -200 Accumulated depreciation -200 Cash +13000 b. Land -8000 Gain on sale of land +5000 C. Machine +11000 Capital lease liability +11000 Capital lease liability - 1720 d. Cash -2600 Interest expense -880 e. Trademark +6500 Cash -6500 f. Trademark +163 X Amortization expense -163 g. Cash +16000 Depreciation expense -1800 Equipment -46000 Loss on sale of equipment -4400 Accumulated depreciation - 1800,+25600
