The Plant Assets account and Accumulated Depreciation - - Plant Assets account of Star Media show the following:
Acquisitions 428,000, 52,500 Disposals
Accumulated Depreciation - - Plant Assets
Disposals 10,500, 34,000 Depr. Exp.
Star Media sold plant assets at an $11,000 loss. Where on the statement of cash flows should Star Media report the sale of plant assets? How much should the business report for the sale?
On January 1, Borge Inc. issued $3,000,000, 8% bonds for $2,817,000. The market rate of interest for these bonds is 9%. Interest is payable annually on December 31. Borge uses the effective-interest method of amortizing bond discount. At the end of the first year, Borge should report unamortized bond discount of Select one: a. $169,470. b. $153,000. c. $163,547. d. $164,700. e. $157,647.
Five years ago, Dunn Trading Co. issued 2,500 ordinary shares. The shares have a P2 par value and sold at that time for P12 per share. On January 1, 2012, Dunn Trading Co. Purchased 1,000 of these shares for P24 per share. On September 30, 2012, Dunn reissued 500 of the shares for P28 per share. The journal entry to record the reissuance will include
A. A credit to cash P14,000.
B. A debit to Treasury Shares P12,000.
C. A credit to Treasury Shares P14,000.
D. A credit to Share Premium-Treasury P2,000.
Green Garden Company purchased a tractor at a cost of $240,000. The tractor has an estimated residual value of $40,000 and an estimated life of 8 years, or 10,000 hours of operation. The tractor was purchased on January 1, 2018, and was used 2,400 hours in 2018 and 2,100 hours in 2019. On January 1, 2020, the company decided to sell the tractor for $140,000. Green Garden Co. uses the units-of - production method to account for the depreciation on the tractor. Based on this information, the entry to record the sale of the tractor will show
a. No gain or loss on the sale
b. A loss of $15,000
c. A loss of $10,000
d. A gain of $30,000
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