At the close of its first year of operations, December 31, 2020, Old Main Industries had accounts receivable of $1,711,000, after deducting the related allowance for doubtful accounts. During 2020, the company had charges to bad debt expense of $272,000 and wrote off, as uncollectible, accounts receivable of $123,000. What should the company report on its balance sheet at December 31, 2020, as accounts receivable before the allowance for doubtful accounts?

Maroon Corp. purchased factory equipment that was installed and put into service January 1, 2020, at a total cost of $126,000. Salvage value was estimated at $9,000. The equipment is being depreciated over four years using the double-declining balance method. For the year 2021, Maroon should record depreciation expense on this equipment of

Pirate Corporation purchased machinery for $925,000 on January 1, 2017. Straight-line depreciation has been recorded based on a $61,000 salvage value and a 4-year useful life. The machinery was sold on April 1, 2020 at a gain of $22,500. How much cash did Pirate receive from the sale of the machinery?

Dak uses the LIFO method to cost inventory. What amount should Dak report as inventory on January 31 under each of the following methods of recording inventory? Units Unit cost Total cost Units on hand Balance on 1/1 1,100 $4 4,400 1,100 Purchased on 1/8 800 5 4,000 1,900 Sold on 1/23 1,000 900 Purchased on 1/28 500 6 3,000 1,400 Answer format:

EXTRA CREDIT: 4.6 points Presented below is information related to equipment owned by Stark Company at December 31, 2020. Cost $16,500,000 Accumulated depreciation to date $  1,420,000 Expected future net cash flows $  1,250,000 Fair value $  6,850,000 Assume that Stark will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Fill in the missing amounts and choose the correct option. For Stark company, the recoverability test compares $ to $. As a result, the asset the recoverability test, because is/are less than , so a on impairment is recorded in 2020. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)         Prepare the journal entry to record depreciation expense for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)         The fair value of the equipment at December 31, 2021 is $6,440,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)      

Pirate Corporation purchased machinery for $855,000 on January 1, 2017. Straight-line depreciation has been recorded based on a $53,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $21,500. How much cash did Pirate receive from the sale of the machinery?

Early in 2020, Cow Corporation engaged Bells, Inc. to design and construct a complete modernization of Cow’s manufacturing facility. Construction was begun on June 1, 2020 and was completed on December 31, 2020. Cow made the following payments to Bells, Inc. during 2020: Date Payment 1-Jun-20 $2,160,000 31-Aug-20   3,240,000 31-Dec-20   2,700,000 In order to help finance the construction, Cow issued the following during 2020: $1,836,000 of 10-year, 9% bonds payable, issued at par on May 31, 2020, with interest payable annually on May 31. 300,000 shares of no-par common stock, issued at $10 per share on October 1, 2020. In addition to the 9% bonds payable, the only debt outstanding during 2020 was a $459,000, 12% note payable dated January 1, 2016 and due January 1, 2023, with interest payable annually on January 1. Compute the following. Round to the nearest dollar. Do NOT use a dollar sign in your answer. 1 Weighted-average accumulated expenditures qualifying for capitalization of interest cost $ 2 Avoidable interest incurred during 2020 $ 3 Total amount of interest cost to be capitalized during 2020 $

Jak Co. has provided the following 20X5 current account balances for the preparation of the annual Statement of Cash Flows: 1-Jan 31-Dec Accounts receivable $15,400 $16,800 Allowance for uncollectible accounts 500 650 Prepaid rent 7,800 6,500 Accounts payable 9,100 10,800 Jak’s 20X5 net income is $81,000. Net cash provided by operating activities in the Statement of Cash Flows should be

The first step in determining whether an impairment has occurred is to estimate the future net cash flows expected from the use of that asset and its eventual disposition.

In calculating earnings per share, companies deduct preferred dividends from net income if: