Answer the Following Questions. (Show Your Work.)

question 51

Essay

Answer the following questions. (Show your work.)
a. A machine was purchased on July 1, 2009. 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, 2010, a company paid in advance $54,000 for three years' insurance. How much Prepaid Insurance remains on the balance sheet on December 31, 2010?
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:

Reverse Auctions

Auctions in which one buyer, usually an organization, seeks to buy a product or a service, and suppliers submit bids; the lowest bidder wins.

Forward Auctions

An auction in which several buyers bid competitively for a seller's good or service, with the price increasing incrementally until the highest bid is reached.

Lower Prices

A strategy where a seller reduces the cost of their goods or services to attract more customers or undercut competitors.

Higher Prices

An economic condition signifying an increase in the cost of goods and services in the market.