What is the essential feature of an electronic funds transfer (EFT) procedure?
Let's know first what is EFT.
Diaz Company owns a milling machine that cost $250,000 and has accumulated depreciation of$182,000. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations. 1. The machine needed extensive repairs, and it was not worth repairing. Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $35,000 cash. 3. Diaz sold the machine for$68,000 cash. 4. Diaz sold the machine for $80,000 cash.
Milano Gallery purchases the copyright on an oil painting for $418,000 on January 1, 2017. The copyright legally protects its owner for 10 more years. The company plans to market and sell prints of the original for 11 years. Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.
Oki Company pays $264,000 for equipment expected to last four years and have a$29,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. During the second year of the equipment’s life, $22,000 cash is paid for a new component expected to increase the equipment’s productivity by 10% a year. 2. During the third year,$6,250 cash is paid for normal repairs necessary to keep the equipment in good working order. 3. During the fourth year, $14,870 is paid for repairs expected to increase the useful life of the equipment from four to five years.
Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $280,000 for the lot plus$110,000 for the old building. The company pays $33,500 to tear down the old building and$47,000 to fill and level the lot. It also pays a total of $1,540,000 in construction costs—this amount consists of$1,452,200 for the new building and $87,800 for lighting and paving a parking area next to the building. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.