Question

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 $175,000.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

On July 1, 2016, Alpha Company purchased for $76,000, equipment having a service life of eight years and an estimated residual value of $4,000. Alpha has recorded depreciation of the equipment using the double-declining balance method.On December 31, 2018, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of $35,000.The transaction has commercial substance. Use this information to General Journal entries (without explanation) required to record the events for December 31, 2018.Round numbers to whole dollars.

Question

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 July1 for the following accounts:

1. Accumulated Depreciation, Equipment
2. Gain or (Loss) on Sale (Enter any loss amount with $ sign inside of brackets)
3. Equipment - New

Question 7:

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 for FY 2016for the following accounts:

1. Accumulated Depletion
2. Inventory
3. Cost of Goods Sold

Question 8:

On January 2, 2016, Alpha Company purchased a patent for $38,500 plus $2,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Alpha Company expects to use the patent for six years. Use this information to prepare the General Journal entry (without explanation) for December 31, 2016 end of the year adjusting entry. If no entry is required then write "No Entry Required."

Question 9:

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?