1) Bernstein Corporation recently experienced a fire which destroyed allof.its inventory. The following data have...
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Accounting
1) Bernstein Corporation recently experienced a fire which destroyed allof.its inventory. The following data have been reconstructed from partial accounting information, and pertain to the year up to the date of the fire $80,000 40% Gross profit rate using the gross profit method, estimate the dollar amount of inventory which was destroyed in the fire. $65000 $48000 $33000 $17000 2. What is the correct double entry to record the depreciation charge for a period? DR Accumulated depreciation CR Depreciation expense DR Depreciation expense CR Accumulated depreciation 3. Shelly Co bought a machine on 1 January 20X3 for $25,000 Depreciation is charged on a straight-line basis, assuming that Ihe. scrap value al the end of Ihe 10 years' life will be zero On 31 December 20X3 the depreciation charged on the machine was credited to the accumulated depreciation acoount. but was inconectty posted to the debit side of the machinery repairs account. Profit as at 31 December 20X3 is $7,000 What is the profit after adjusting for this error? $7,000 $4,500 $5,000 $9,500
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