Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / 1

1

Accounting

1.Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000 at 4.38%. What percent of Ann's 20th payment goes to interest?

2.Assume that Inter-Provincial Transport Ltd.’s balance sheet includes the following assets under Property, Plant, and Equipment: Land, Buildings, and Motor-Carrier Equipment. Inter-Provincial has a separate accumulated depreciation account for each of these assets except land. Further, assume that Inter-Provincial completed the following transactions in 2019:

Jan. 3 Sold motor-carrier equipment with accumulated depreciation of $67,000 (cost of $130,000) for $71,000 cash. Purchased similar new equipment with a cash price of $176,000.

July 2 Sold a building that had cost $650,000 and had accumulated depreciation of $145,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building had a 40-year useful life and a residual value of $250,000. Inter-Provincial received $100,000 cash and a $400,000 note receivable.

Oct. 29 Purchased land and a building for a single price of $420,000. An independent appraisal valued the land at $150,000 and the building at $300,000.

Dec. 31 Recorded depreciation as follows:

  • New motor-carrier equipment has an expected useful life of six years and an estimated residual value of 5% of cost. Depreciation is computed on the double-diminishing-balance method.
  • Depreciation on buildings is computed by the straight-line method. The new building carries a 40-year useful life and a residual value equal to 10% of its cost.

Requirements:

Record the transactions in Inter-Provincial Transport Ltd.’s journal.

How does management choose which depreciation method to use?

3.Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $333000; and legal support, $166500. Information on the two services is:

    Audit   Tax  
Direct labor cost $50000 $100000
CPU minutes 40000 10000
Legal hours used 200 800


Overhead applied to audit services using activity-based costing is

$299700.

$199800.

$166500.

$333000.

4.On January 3, 2016, B.W. Soffer Inc. paid $224,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $6,200, $6,700 sales tax, and $3,100 for special installation. Management estimates that the computer will remain in service for five years and have a residual value of $15,000. The computer will process 50,000 documents the first year, decreasing annually by 5,000 during each of the next four years (that is, 45,000 documents in 2017, 40,000 documents in 2018, and so on). In trying to decide which depreciation method to use, the company president has requested a depreciation schedule for each of three depreciation methods (straight-line, units-of-production, and double-diminishing-balance).

Option 1

Low Cost Option
Download this past answer in few clicks

2.89 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE