Please, prepare one step income statement. What is net income? Sales revenues 185 000 Cost of goods sold 75 000 Commission expense 8000 Office supplies expense 3500 Interest revenues 7000 Office equipment expense 2500 Advertising expense 4500 Interest expense 650 Loss from lawsuit 2500 Gain on sales of assets ? Additional information: a) Company sells old asset for 15 000 euro. Over the years, the cost of the asset was depreciated on the company's accounting records (10 500) euro.)
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Please, prepare one step income statement. What is net income? Sales revenues 185 000 Cost of goods sold 75 000 Commission expense 8000 Office supplies expense 3500 Interest revenues 7000 Office equipment expense 2500 Advertising expense 4500 Interest expense 650 Loss from lawsuit 2500 Gain on sales of assets ? Additional information: a) Company sells old asset for 15 000 euro. Over the years, the cost of the asset was depreciated on the company's accounting records (10 500) euro.)
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- Study the following material and independent transactions below: Transaction 1 Dr Accumulated depreciation $ 100,000 Dr Accounts receivable (a related company) $ 4,900,000 Cr Buildings $ 2,600,000 Cr Gain on disposal of buildings $ 2,400,000 Transaction 2 Dr Sales returns $ 2,000,000 Dr Inventory $ 1,000,000 Cr Accounts receivable $ 2,000,000 Cr Cost of sales $ 1,000,000 Required: For each of the transactions above: Describe the transaction represented by the double entry; Describe two (2) audit assertions contained in the transaction that would be of interest to the auditor; and Describe two (2) substantive audit procedures the auditor will need to perform in order to verify these assertions.An asset's book value is $36,000 on January 1, Year 6. The asset is being depreciated $500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $25,000, the company should record: A. Neither a gain or loss is recognized on this type of transaction. B. A gain on sale of $2,000. C. A loss on sale of $1,000. D. A gain on sale of $1,000. E. A loss on sale of $2,000.A company purchases a computer system for $20000. The following graph shows the depreciation of the computer system over the five years period. How much is the rate of depreciation per year? VA 20000 6000 0 1 2 a. $20000/year b. $6000/year C. 14% per year d. $2800/year 3 5
- Viserys Corporation, a dealer of cars, sold its old warehouse with carryingamount of P600,000 for P1,000,000. Initial payments of P300,000 wascollected as of December 31, 2018. Compute for the gross profit to be reportedfor the year 2018. a. 60,000b. 120,000c. 133,333d. 400,000e. Answer not givenDillard Company starts the year with $10,000 in its cash account, $10,000 in its equipment account, $3,000 in accumulated depreciation and $17,000 in its retained earnings account. During the year Dillard sells the equipment for $6530. After the sale of equipment is recorded, the retained earnings account will have a balance of $________.A company’s statement of profit or loss for the year ended 31 December 20X5 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to the motor expenses account. It is the company’s policy to depreciate motor vans at 25% per year on the straight line basis, with a full year’s charge in the year of acquisition. What would the net profit be after adjusting for this error?
- Un Company sold office equipment with a cost of $39,000 and accumulated depreciation of $34,976 for $6,200 Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section? a b C d C Book value Gain (loss) on sale Net income would Total assets would Effect Section by byUn Company sold office equipment with a cost of $42,880 and accumulated depreciation of $39,583 for $5,010. Required What is the book value of the asset at the time of sale? What is the amount of gain or loss on the disposal? How would the sale affect net income (increase, decrease, no effect) and by how much? How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section?Uno Company sold office equipment with a cost of $44,560 and accumulated depreciation of $40,255 for $6,120. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? (Loss amount should be indicated with a minus sign.) c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section? a. Book value b. Gain (loss) on sale c. Net income would d. Total assets would by by e. Cash flow would by Section
- USING THE FOLLOWING DATA, CALCULATE THE DOLLAR AMOUNT ($) OF TOTAL INTANGIBLE ASSETS DEPRECIATION EXPENSE-BLDG 5. SALARIES AND WAGES PAYABLE LAND 800 200 ACCUMULATED DEPRECIATION -BUILDING 35 UNEARNED SALES REVENUE 360 SHORT TERM INVESTMENTS 93 PATENTS 69 NOTES PAYABLE 180 PREPAID LEGAL EXPENSE 18 BUILDING 990 MORTGAGE PAYABLE 510 LONG TERM NOTES RECEIVABLE 30 MEDICAL SUPPLIES 25 GOODWILL 18 BONDS PAYABLE 103 LAND HELD FOR FUTURE USE 720 COST OF SALES 280 UNEARNED INTEREST FEES 14 INTEREST INCOME 3 LAND HELD FOR FUTURE USE 45 INVENTORY 387 COPYRIGHTS 170 PENSION OBLIGATIONS 122 PREPAID ADVERTISING 20 RENTAL FEES 15 LONG TERM NOTES PAYABLE 50 180 ACCRUED LIABILITIES 10 TRADEMARK A Moving to the next question prevents changes to this answer. MacBook AirPrepare an income statement with the information listed below: Accumulated Depreciation $ 35,000Accounts Payable $ 65,000Advertising Expense $ 20,625Prepaid Advertising $ 61,875Common Stock $ 50,000Depreciation Expense $ 12,500Dividend Payable $ 50,000Dividends $ 100,000Income Tax expense $ 48,000Income Tax Payable $ 35,000Interest Expense $ 3,750Interest Revenue $ 500Loss on Disposal of Assets $ 10,000Prepaid Rent $ 56,250Rent Expense $ 18,750Retained Earnings $ 836,875Sales Revenue $ 300,000Utilities Expense $ 8,750Utilities Payable $ 7,000Wage Expense $ 41,250Wages Payable $ 10,125A business statement of profit or loss and other comprehensive income for the year ended 31 December 20X4 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to motor expenses account. It is the company's policy to depreciate motor vans at 25 per cent per year, with a full year's charge in the year of acquisition. What would the net profit be after adjusting for this error? A $106,100 B $70,100 C $97,100 D $101,600