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  3. question # 3   answer each of the following inde

Question # 3   Answer each of the following independent questions. On Jan. 10, 2015 AIE Co. bought...

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Accounting

Question # 3   Answer each of thefollowing independent questions.

  1. On Jan. 10, 2015 AIE Co. bought a plant asset with a cost of$216,000, estimated life of 6 years, and residual value of $36,000,is depreciated by the straight-line method. On Oct. 19, 2019 Theasset was sold for $116,000. Required: Determinethe amount of gain or loss to be recognized on this sale. Explainhow the sale would be reported in the financial statements of AIECo.

  1. At the beginning of 2017 TW Co. reported Supplies on handbalance of $400. During 2017 TW Co. purchased additional suppliesfor $1,100. Physical count at the end of 2017 revealed a balance of$250 worth of supplies. Show how TW Co. would report the suppliesrelated accounts in the income statement and balance sheet at theend of 2017?

  1. During 2016, Dubai Theatre bought projection equipment oninstallment basis. The contract price was $23,610, payable $5,610down, and $2,250 a month for the next eight months. The cash pricefor this equipment was $22,530. Additional $850 were paid forwiring & ventilation work. The costs of running the projectionequipment during 2016 was $450. Determine the cost at which theProjection equipment will be recorded in the books of DubaiTheatre.

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