Question 9 (Homework 6)

On July 1, 2016, Alpha Company negotiated the purchase of a new piece of equipment with the seller Zulu Company. The equipment was list for $200,000. Smooth talking Alpha was able to negotiate the purchase price and acquired the equipment at $180,000. Alpha Company completed the purchase transaction on July 1. Additionally, Alpha was entitled to a 1% discount if it paid for the equipment within 10 days. After completing the purchase, Bravo Company, third party, offered Alpha, $185,000 for this equipment. What amount should Alpha Company record the equipment purchase at if payment is made by July 11?

Question 9 options:

Question 10

On June 30, 2016, after adjusting entries were posted, Alpha Company sold a machine. The historical cost was $11,000 and the book value was $2,500. It was sold for $1,100 cash. Using this information, how much should be recorded on June 30 for the following accounts:

Accumulated Depreciation, Machine

Gain or (Loss) on Sale (Enter any loss amount with $ sign inside of brackets)

Machine

Question 11

On July 1, 2016, Alpha Company exchanged an old computer (Equipment) with a historical cost of $1,000 that had accumulated depreciation of $600 after all June adjusting entries had been processed. The exchange was for a new computer having a fair value of $500. The transaction has commercial substance. Using this information, how much should be recorded on June 30 for the following accounts:

Accumulated Depreciation, Machine

Gain or (Loss) on Sale (Enter any loss amount with $ sign inside of brackets)

Machine

Question 12

Alpha Mining Company recognizes $2 of depletion for each ton of ore mined. During 2016, 850,000 tons of ore were mined and 725,000 tons were sold. Using this information, how much should be recorded on June 30 for the following accounts:

Accumulated Depletion

Inventory

Cost of Goods Sold

Question 13

Alpha Company was recently sold for $1,250,000. Alpha assets & liabilities consisted of the following:

Item	Amount
Cash	$75,000
Inventory	$275,000
Property, Plant & Equipment (net)	$750,000
Accounts Payable	$350,000

Using this information, how much should be recorded as Goodwill for this transaction?