Accounting?

Question

A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of what?

What entry is required in the depositor's accounts to record outstanding checks?

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. What entry is required in the depositor's accounts?

A $100 petty cash fund has cash of $16 and receipts of $80. The journal entry to replenish the account would include a credit to what?

An estimate based on an analysis of receivables shows that $780 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $110. After preparing the adjusting entry at the end of the year, the balance in the Uncollectible Accounts Expense is what?

A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss?

Answer 1

A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of what?

Cost includes all costs necessary to bring the asset to working condition for its intended use. This would include not only its original purchase price but also costs of site preparation, delivery and handling, installation, related professional fees for architects and engineers, and the estimated cost of dismantling and removing the asset and restoring the site [IAS 16.16-17]

So the total cost would be $110,000.

What entry is required in the depositor's accounts to record outstanding checks?
When you bank in a customer's cheque, you'd:
Dr Cash xxx
Cr AR xxx

When you issue a cheque in payment for something, you'd:
Dr AP xxx
Cr Cash xxx
The fact that it's outstanding at month-end does not warrant an entry, but it would appear as a reconciling item in the bank reconciliation.

Accompanying the bank statement was a debit memo for an NSF check received from a customer. What entry is required in the depositor's accounts?
Dr AR xxx
Cr Cash xxx

A $100 petty cash fund has cash of $16 and receipts of $80. The journal entry to replenish the account would include a credit to what?
It would include a credit to cash a/c.

An estimate based on an analysis of receivables shows that $780 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $110.
After preparing the adjusting entry at the end of the year, the balance in the Uncollectible Accounts Expense is $890.

A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss?
Dr Cash/AR $3,500
Dr Accd depn $27,500
Cr Asset at cost $30,000
Cr Gain on disposal $1,000

Answer 2

1) The cost of the new machine would be 104,000.

2) In the reconciliation, the outstanding checks would be deducted from the banks records. No adjustment or journal entry would be required in the depositors records.

3) For the NSF, you would deduct it in the depositor's cash balance in the reconciliation. The journal entry would be a debit to accounts receivable and a credit to cash.

4) You would debit the 80.00 worth of receipts, debit cash short and over for 4.00 and credit cash for 84.00

5) A debit to uncollectable accounts expense would be made for 890.00 and a credit to allowance for doubtful accounts for 890.00 This would leave a balance in the allowance account of 780.00

6) dr cash 3,500.
dr accumulated depreciation 27,500.
cr fixed asset 30,000.
cr gain on sale of fixed asset 1,000.

Answer 3

(Petty Cash)

The journal entry to replenish the account would include a credit to Cash for $84.00.

It would take $84.00 dollars to bring the petty cash account back up to a $100.00 balance.

Your source documents only account for $80.00. You are missing a petty cash receipt for $4.00.

Answer 4

(petty cash) covergirl forgot to mention that you will also need to debit your over short for the 4.00 that you are short.