Selected ledger account balances for Business Solutions follows… 1 answer below »

EM (This serial problem began in Chapter 1 and continues through most of the hook. If previous chapter seg-ments were not completed, the serial problem can begin at this point.)
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SP 10 Selected ledger account balances for Business Solutions follow.
For Three Months Ended December 31, 2017 For Three Months Ended March 31, 2018 Office equipment $ 8,000 $ 8,000 Accumulated depreciation—Office equipment 400 800 Computer equipment 20,000 20,000 Accumulated depreciation—Computer equipment 1,250 2,500 Total revenue 31,284 44,000 Total assets 83,460 120,268
Required 1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2018. Compute amounts for the year ended December 31, 2018, for Depreciation Expense—Office Equipment and for Depreciation Expense—Computer Equipment (assume use of the straight-line method). 2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2018? 3. Compute the three-month total asset turnover for Business Solutions as of March 31, 2018. Use total revenue for the numerator and average the December 31, 2017, total assets and the March 31, 2018, total assets for the denominator. Interpret its total asset turnover if competitors average 2.5 for annual periods. (Round turnover to two decimals.)

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