On April 1, 2018, Nunez Manufacturers purchases equipment for $100,000, paying $30,000 in cash and signing a 10-year mortgage for $70,000 at 8% annual interest
Prepare the journal entry to record the acquisition of the equipment. Omit explanation.
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Gross profit less direct operating expenses equals
a. indirect operating expenses. b. gross profit. c. direct operating margin. d. net income.
Compute the payback period for each investment. Show your calculations and round to one decimal place.
Zebulon, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available:
A company has beginning inventory of 15 units at a cost of $12 each on October 1. On October 5, it purchases 10 units at $13 per unit. On October 12 it purchases 20 units at $14 per unit. On October 15, it sells 30 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale?
A. $590 B. $210 C. $160 D. $380 E. $140
A firm may retire an asset from service by trading it in on a new asset. U.S. GAAP and IFRS require that firms record a trade-in that lacks commercial substance at
a. present value of future cash flows. b. replacement value. c. liquidation value. d. the carrying value of the exchanged asset. e. undiscounted cash flows.