Author: Anonymous

Pirate Corporation purchased machinery for $925,000 on January 1, 2017. Straight-line depreciation has been recorded based on a $61,000 salvage value and a 4-year useful life. The machinery was sold on April 1, 2020 at a gain of $22,500. How much cash did Pirate receive from the sale of the machinery?

Dak uses the LIFO method to cost inventory. What amount should Dak report as inventory on January 31 under each of the following methods of recording inventory? Units Unit cost Total cost Units on hand Balance on 1/1 1,100 $4 4,400 1,100 Purchased on 1/8 800 5 4,000 1,900 Sold on 1/23 1,000 900 Purchased on 1/28 500 6 3,000 1,400 Answer format: [Perpetual      Periodic]

Pirate Corporation purchased machinery for $855,000 on January 1, 2017. Straight-line depreciation has been recorded based on a $53,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $21,500. How much cash did Pirate receive from the sale of the machinery?

Jak Co. has provided the following 20X5 current account balances for the preparation of the annual Statement of Cash Flows: 1-Jan 31-Dec Accounts receivable $15,400 $16,800 Allowance for uncollectible accounts 500 650 Prepaid rent 7,800 6,500 Accounts payable 9,100 10,800 Jak’s 20X5 net income is $81,000. Net cash provided by operating activities in the Statement of Cash Flows should be

In calculating earnings per share, companies deduct preferred dividends from net income if:

At the close of its first year of operations, December 31, 2020, Old Main Industries had accounts receivable of $9,845000, after deducting the related allowance for doubtful accounts. During 2020, the company had charges to bad debt expense of $218,000 and wrote off, as uncollectible, accounts receivable of $219,000. What should the company report on its balance sheet at December 31, 2020, as accounts receivable before the allowance for doubtful accounts?

Perry Corp. acquired a tract of land containing an extractable natural resource. Perry is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 2,850,000 tons, and that the land will have a value of $640,000 after restoration. Relevant cost information follows: Land  $       6,850,000 Estimated restoration costs  $       1,260,000 If Perry maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?

Perry Corp. acquired a tract of land containing an extractable natural resource. Perry is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 2,850,000 tons, and that the land will have a value of $760,000 after restoration. Relevant cost information follows: Land  $       7,650,000 Estimated restoration costs  $       1,090,000 If Perry maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?

Maroon Corp. purchased factory equipment that was installed and put into service January 1, 2020, at a total cost of $164,000. Salvage value was estimated at $12,000. The equipment is being depreciated over five years using the double-declining balance method. For the year 2021, Maroon should record depreciation expense on this equipment of

Dawg Corporation exchanges one plant asset for a similar plant asset and gives cash in the exchange. The exchange is not expected to cause a material change in the future cash flows for either entity. If a gain on the disposal of the old asset is indicated, the gain will