Q: The following are selected 2020 transactions of Pedigo Corporation. Jan
The following are selected 2020 transactions of Pedigo Corporation. Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. May 1 Purchased for $75,000 a pat...
See AnswerQ: Gill Company, organized in 2020, has the following transactions related
Gill Company, organized in 2020, has the following transactions related to intangible assets. Instructions Prepare the necessary entries to record these intangibles. All costs incurred were for cash...
See AnswerQ: During 2020, Paola Corporation reported net sales of $3,
During 2020, Paola Corporation reported net sales of $3,500,000 and net income of $1,500,000. Its balance sheet reported average total assets of $1,400,000. Instructions Calculate the asset turnover....
See AnswerQ: Presented below are two independent transactions. Both transactions have commercial substance
Presented below are two independent transactions. Both transactions have commercial substance. 1. Mercy Co. exchanged old trucks (cost $64,000 less $22,000 accumulated depreciation) plus cash of $17,0...
See AnswerQ: Rizzo’s Delivery Company and Overland’s Express Delivery exchanged delivery trucks on January
Rizzo’s Delivery Company and Overland’s Express Delivery exchanged delivery trucks on January 1, 2020. Rizzo’s truck cost $22,000. It has accumulated depreciation of $15,000 and a fair value of $3,000...
See AnswerQ: Benedict Company incurred the following costs. 1. Sales
Benedict Company incurred the following costs. 1. Sales tax on factory machinery purchased …………………………………………… $ 5,000 2. Painting of and lettering on truck immediately upon purchase …………….…….. 700 3....
See AnswerQ: On March 1, 2020, Westmorlan Company acquired real estate on
On March 1, 2020, Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash. An old warehouse on the property was razed at a co...
See AnswerQ: Tom Parkey has prepared the following list of statements about depreciation.
Tom Parkey has prepared the following list of statements about depreciation. 1. Depreciation is a process of asset valuation, not cost allocation. 2. Depreciation provides for the proper matching of e...
See AnswerQ: Yello Bus Lines uses the units-of-activity method in
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $148,000. Over its 4-year useful life, the bus is expected to be dri...
See AnswerQ: Oscar Company has been using the FIFO cost flow method during a
Oscar Company has been using the FIFO cost flow method during a prolonged period of inflation. During the same time period, Oscar has been paying out all of its net income as dividends. What adverse e...
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