Answer the Following Questions.(Show Your Work.)

question 98

Essay

Answer the following questions.(Show your work.)
a. A machine was purchased on July 1, 20xx. It had a cost of $36,000 and an estimated useful life of nine years with zero value at that time. What is the machine's carrying value after four years?
b. On April 1, 20xx, a company paid in advance $54,000 for three years' insurance. How much Prepaid Insurance remains on the balance sheet on December 31, 20xx?
c. A company began the year with $800 in supplies, purchased $2,000 in supplies, and ended the period with $600 in supplies. How much is Supplies Expense for the period?
d. A company was paid $1,800 in advance for services to be performed. At year end, one-third had not yet been earned. How much in Service Revenue should be recorded?

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Definitions:

Investment Activity

Investment activity involves the allocation of capital to assets or projects with the expectation of generating future returns, contributing to a company's growth or financial health.

Days' Sales in Inventory

A financial ratio that shows the average number of days a company holds its inventory before selling it.

Average Collection Period

The typical timeframe a firm needs to gather payments from sales made on credit, showcasing how efficient its credit and collection procedures are.

Total Current Assets

The aggregate amount of all current assets on a company’s balance sheet, which are expected to be converted into cash within one fiscal year.