Use below information to prepare general journal entries for Belle Co.'s 1 through 7 transactions. 1. D. Belle created a new business and invested $6,000 cash, $7,600 of equipment, and $12,000 in web servers in exchange for common stock.
2. The company paid $4,800 cash in advance for prepaid insurance coverage.
3. The company purchased $900 of supplies on account.
4. The company paid $800 cash for selling expenses.
5. The company received $4,500 cash for services provided.
6. The company paid $900 cash toward accounts payable.
7. The company paid $3,400 cash for equipment.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51

Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent.a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?

In the past, peter kelle's tire dealership in baton rouge sold an average of 1,200 radials each year. in the past 2 years, 200 and 250, respectively were sold in fall, 360 and 300 in winter, 150 and 175 in spring, and 320 and 645 in summer. with a major expansion planned, kelle projects sales next year to increase to 1,400 radials. based on next year's projected sales, the demand for each season is going to be