During 2019, Paola Corporation reported net sales of $3,500,000 and net income of $1,500,000. Its balance sheet reported average total assets of $1,400,000.

Instructions

Calculate the asset turnover.

Solution

Problems: Plant Assets, Natural Resources and intangible Assets

Problem-9: Plant Assets, Natural Resources and intangible Assets

LaPorta Company and Lott Corporation, two corporation of roughly the same size, are both involved in the manufacture of in-line skates. Each company depreciates its plant assets using the straight-line...

Problem-8: Plant Assets, Natural Resources and intangible Assets

Due to rapid turnover in the accounting department, a number of transactions involving intangible assets were improperly recorded by Goins Company in 2019. Goins developed a new manufacturing process, incurring...

Problem-7: Plant Assets, Natural Resources and intangible Assets

The intangible assets section of Sappelt Company at December 31, 2019, is presented below. The patent was acquired in January 2019 and has a useful life of 10 years. The...

Problem-6: Plant Assets, Natural Resources and intangible Assets

Ceda Co. has equipment that cost $80,000 and that has been depreciated $50,000. Instructions Record the disposal under the following assumptions. It was scrapped as having no value. It was...

Problem-5: Plant Assets, Natural Resources and intangible Assets

At December 31, 2019, Grand Company reported the following as plant assets. During 2020, the following selecterd cash transactions occurred. April 1Purchased land for $2,130,000. May 1Sold equipment that cost...

Problem-4: Plant Assets, Natural Resources and intangible Assets

At the beginning of 2015, Mazzaro Company acquired equipment costing $120,000. It was estimated that this equipment would have a useful life of 6 years and a salvage value of...

Problem-3: Plant Assets, Natural Resources and intangible Assets

On January 1, 2019, Evers Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $48,000. Related expenditures included:...

Problem-2: Plant Assets, Natural Resources and intangible Assets

In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods...

Problem-1: Plant Assets, Natural Resources and intangible Assets

Venable Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. Debit 1.Cost of filling and...

Problem-10: Plant Assets, Natural Resources and intangible Assets

The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2019. Paid $5,000 of accrued taxes at time plant site was acquired....

Problem-11: Plant Assets, Natural Resources and intangible Assets

Benedict Company incurred the following costs. Instructions Indicate to which account Benedict would debit each of the costs.

Problem-12: Plant Assets, Natural Resources and intangible Assets

On March 1, 2019, Westmorian Company acquired real estate on which it planned to construct a small office buildings. The company paid $75,000 in cash. An old warehouse on the...

Problem-13: Plant Assets, Natural Resources and intangible Assets

Tom Parkey has prepared the following list of statements about depreciation. Depreciation is a process of asset valuation, not cost allocation. Depreciation provides for the proper matching of expenses with...

Problem-14: Plant Assets, Natural Resources and intangible Assets

Yello Bus lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $148,000. Over its 4-year useful life, the...

Problem-15: Plant Assets, Natural Resources and intangible Assets

Rottino Company purchased a new machine on October 1, 2019, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine...

Problem-16: Plant Assets, Natural Resources and intangible Assets

Linton Company purchased a delivery truck for $34,000 on January 1, 2019. The truck has an expected salvage value of $2,000, and s expected to be driven 100,000 miles over...

Problem-17: Plant Assets, Natural Resources and intangible Assets

Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2019. His findings as as...

Problem-18: Plant Assets, Natural Resources and intangible Assets

Presented below are selected transactions at Ridge Company for 2019. Jan. 1Retired a piece of machinery that was purchased on January 1, 2009. The machine cost $62,000 on that date....

Problem-19: Plant Assets, Natural Resources and intangible Assets

Pryce Company owns equipment that cost $65,000 when purchased on January 1, 2016. It ha been depreciated using the straight-line method based on estimated salvage value of $5,000 and an...

Problem-20: Plant Assets, Natural Resources and intangible Assets

On July 1, 2019, Friedman Inc. invested $720,000 In a mine estimated to have 900,000 tons of ore of uniform grade. During the last 6 months of 2019, 100,000 tons...

Problem-21: Plant Assets, Natural Resources and intangible Assets

The following are selected 2019 transactions of Pedigo Corporation. Jan. 1Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. May 1Purchased for $75,000 a patent...

Problem-22: Plant Assets, Natural Resources and intangible Assets

Gill Company, organized in 2019, has the following transactions related to intangible assets. 1/2/19Purchased patent (7-year life)$595,000 4/1/19Goodwill purchased (indefinite life)360,000 7/1/1910-year franchise; expiration date 7/1/2029480,000 9/1/19Research and development costs185,000...

Problem-23: Plant Assets, Natural Resources and intangible Assets

Instructions

Solution

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