ASSETS
what is good will?
is the value paid above the net worth of a company’s assets and liabilities
what is asset turnover ratio?
the amount of net sales generated for each average dollar of total assets invested.
what are some examples of intangible assets ?
–Patents
–Copyrights
–Trademarks
–Other creative works
what is cost principle ?
It states that acquired assets and services should be recorded at their actual costs.
What was one strategy you used when you had fewer resources?
open - ended
in disposal of assets, journal entry if we had a gain on assets ? where would we show the account? Debit or Credit?
Credit
What's the formula for depreciation per unit?
depreciation per unit = (cost- residual value)/ useful life in units
Which question felt hardest without help?
open-ended
in disposal of assets, journal entry if we had a loss on assets ? where would we show the account? Debit or Credit?
debit
On July 1, Smart Touch learning discards equipment with a cost of $10,000 and an accumulated depreciation of $10,000. Write a journal entry for the above scenario ( discarding plant assets ).
Accumulated depreciation - equipment = $10,000(dr.)
Equipment = 10,000 (cr.)
What is the formula of straight-line depreciation?
(cost - residual value)/ useful life
Journal entry for recording depreciation expense
depreciation expense (dr.)
accumulated depreciation (cr.)
whats are some features of goodwill?
•Special features of goodwill:
–It is recorded by an acquiring company when it purchases another company for more than the fair value of the net assets acquired.
–Goodwill is not amortized.
do u think this Study skill will help-you individual study ? if yes how will it help ?
open-ended
(cost -accumulated depreciation ) *2 * (1/useful life)
Identify which assets are tangible vs. intangible assets. basically define them and give atleast 2 -3 examples
Physical assets — things you can see and touch — that have measurable value and are used in a company’s operations.
Examples:
Land
Buildings
Equipment
Machinery
Vehicles
Furniture and fixtures;
•Intangible assets are assets that have no physical form.
•Examples of intangible assets include:
–Patents
–Copyrights
–Trademarks
Other creative worksOn February 1, 2021, the company sells machinery that originally cost $120,000. The accumulated depreciation as of January 31, 2021, was $90,000.
1) If the selling price was $30,000, what journal entries would the company record?
Cash = 30,000 (dr.)
Accumulated depreciation = 90,000 (dr.)
equipment = 120,000 (cr.)
What's the formula for units of production depreciation?
step1 : depreciation per unit = (cost -residual value)/ useful life ;
step2 : units of production depreciation = depreciation per unit * current year usage
Name one difference between the 3 methods of depreciation.
- The straight line method allocates an equal amount of depreciation to each year
- The units-of-production method allocates a varying amount of depreciation each year based on the asset’s usage.
- The double-declining balance depreciation method is an accelerated depreciation method that counts as an expense more rapidly (when compared to straight-line depreciation that uses the same amount of depreciation each year over an asset's useful life). Businesses use it to account for the expense of a long-lived asset.
On February 1, 2021, the company sells machinery that originally cost $120,000. The accumulated depreciation as of January 31, 2021, was $90,000.2) If the selling price was $35,000, what journal entries would the company record?
cash = 35,000(dr.)
accumulated depreciation = 90,000(dr.)
equipment = 120,000(cr.)
gain on disposal of assets = 5000(cr.)
Rome Corporation acquired Mocha, Inc. on January 1, 2025. The sum of the market values of Mocha’s assets was $9 million and its liabilities totaled $1 million, so Mocha’s net assets totaled $8 million. Suppose White paid $10 million to purchase Mocha.calculate the good will for this one!
good will = $2,000,000
A machine that costs $400,000 has an estimated residual value of $40,000 and an estimated useful life of 4 years. The company uses straight-line depreciation. Calculate its book value at the end of year 1
$310,000
Rome Corporation acquired Mocha, Inc. on January 1, 2025. The sum of the market values of Mocha’s assets was $9 million and its liabilities totaled $1 million, so Mocha’s net assets totaled $8 million. Suppose White paid $10 million to purchase Mocha. Prepare a journal entry for this scenario, on goodwill.
assets = 9,000,000(dr.)
goodwill = 2,000,000(dr.)
liabilities = 1,000,000(cr.)
cash = 10,000,000(cr.)
Given the Pepsico annual report, net sales revenue for 2021 is $79,474 and for 2020 is $70,372; and total assets for 2021 are $92,377 and for 2020 are $92,918. Cal. the asset turnover ratio.
= .86
A machine that costs $400,000 has an estimated residual value of $40,000 and estimated useful life of 4 years. The company uses double-declining-balance depreciation. Calculte its book value at the end of year 1
$200,000