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ID: 2380346 • Letter: P
Question
Please explain how you got your answer: If not i can't rate you best answer
Here are the questions, please help!
A company sells a plant asset that originally cost $300,000 for $100,000 on December 31, 2012. The accumulated depreciation account had a balance of $120,000 after the current year's depreciation of $30,000 had been recorded. The company should recognize a
$80,000 gain on disposal.
$200,000 loss on disposal.
$50,000 loss on disposal.
$80,000 loss on disposal.
Ramos Company has a 90-day note that carries an annual interest rate of 8%. If the amount of the total interest on the note is equal to $800, then what is the principal of the note?
$25,600
$40,000
$10,000
$57,600
The bookkeeper recorded the following journal entry
Allowance for Doubtful Accounts 1,000
Accounts Receivable ? Richard James 1,000
Which one of the following statements is false
The Allowance for Doubtful Accounts as a normal credit balance.
There is no change in net income.
James' account was written off because it was determined to be uncollectible.
This entry was prepared on the last day of the accounting period.
$80,000 gain on disposal.
$200,000 loss on disposal.
$50,000 loss on disposal.
$80,000 loss on disposal.
Please explain how you got your answer: If not i can't rate you best answer Here are the questions, please help! A company sells a plant asset that originally cost $300,000 for $100,000 on December 31, 2012. The accumulated depreciation account had a balance of $120,000 after the current year's depreciation of $30,000 had been recorded. The company should recognize a Ramos Company has a 90-day note that carries an annual interest rate of 8%. If the amount of the total interest on the note is equal to $800, then what is the principal of the note? The bookkeeper recorded the following journal entry Allowance for Doubtful Accounts 1,000 Accounts Receivable ?Richard James 1,000 Which one of the following statements is falseExplanation / Answer
a) The company could only account for 1,20,000$ out of (3,00,000 - 1,00,000) = 2,00,000 $ for disposal.
Thus, it has $80,000 loss at disposal.
b) assuming simple interest,
P*N*R / 100 = Interest
P= ?
N = 90 days = 3 months = 0.25 year
R = 8%
Interest = 800
So, P = 800 * 100/ (0.25 * 8) = 40,000 $
c) The Accounts receivable can't be striked off as doubtful allowance as the receivable part is sure to get credited.
Hence, statement (c) i.e. James' account was written off because it was determined to be uncollectible. is false.
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