1) Manatee Inc. began its' operation on January 1, 2012. During 2019 the business was engaged in the following selected transactions: June 1 Sold equipment that cost $78,000 when purchased on January 1, 2015. The equipment was sold for $40,000. The equipment is estimated to have a 10-year useful life and no salvage value. Dec 31 Retired equipment that cost $72,000 when purchased on December 31, 2012. The company received no procceds related to salvage. The equipment is estimated have a 8-year useful life and no salvage value. Dec 31 Yearly Depreciation was recorded on a delivery truck that was purchased at a cost of $28,000 on July 01, 2018. This truck has a lifetime of 5 years and a salvage value of $4,000, Manatee Inc uses units of activity method for this truck. Total miles are expected to be 120,000. Actual miles of use in 2018 and 2019 were 12,000 and 25,000 respectively. Instruction: Journalize the transactions.

1) Manatee Inc. began its' operation on January 1, 2012. During 2019 the business was engaged in the following selected transactions: June 1 Sold equipment that cost $78,000 when purchased on January 1, 2015. The equipment was sold for $40,000. The equipment is estimated to have a 10-year useful life and no salvage value. Dec 31 Retired equipment that cost $72,000 when purchased on December 31, 2012. The company received no procceds related to salvage. The equipment is estimated have a 8-year useful life and no salvage value. Dec 31 Yearly Depreciation was recorded on a delivery truck that was purchased at a cost of $28,000 on July 01, 2018. This truck has a lifetime of 5 years and a salvage value of $4,000, Manatee Inc uses units of activity method for this truck. Total miles are expected to be 120,000. Actual miles of use in 2018 and 2019 were 12,000 and 25,000 respectively. Instruction: Journalize the transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Funseth Farms Inc. purchased a tractor in 2018 at a cost of $34,800. The tractor was sold for $3,400 in 2021. Depreciation recorded through the disposal date totaled $30,000. (1) Prepare the journal entry to record the sale. (2) Now assume the tractor was sold for $11,200; prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the sale of the tractor for $3,400. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal >
The Laura Company has the following errors on its books as of December 31, 2020. The books for 2020 have not yet been closed. a. In 2020, fully depreciated equipment (with no residual value) that originally cost $8,000 was sold for $700 as scrap. The company credited the $700 proceeds to Equipment. b. On January 1, 2019, the company recorded the purchase of equipment in exchange for a three-year, noninterest-bearing note payable in the amount of $10,000. Interest rates were then 8%, but no recognition was made of this fact. The present value of $1 at 8% for three periods is 0.7938. (Ignore depreciation.) Required: Prepare journal entries to correct these errors at December 31, 2020. Ignore income taxes.
Kaila Corporation purchased a truck for 225,000 on January 1, 2017. It was originally depreciated on a straight-line basis over 10 years with an assumed residual value of 45,000. On December 31, 2019, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2019) and the residual value to 7,500. What was the depreciation expense for 2019?
Here are selected 2022 transactions of Flounder Company. Jan. 1 Retried a piece of machinery that was purchased on January 1, 2012. The machine cost $62,400 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2019. The computer cost $35,500 and had a useful life of 5 years with no salvage value. The computer was sold for $14,100 cash. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2018. The truck cost $36,660. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Flounder Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021.) (List all debit entries before credit entries)
Please answer all the letters from a to f. Please provide your solutions in good accounting form. Thank you so much. Please complete your answers with the requirements asked in the problem.
(c) Pablo vacated an office building and let it out to a third party on 1 July 2020. The building had an original cost of $1,200,000 on 1 January 2015 and was being depreciated over 40 years using the double declining balance method until 31st December 2016. The estimated residual value of the building is $283,000. On 1 January 2017, the company decided to switch to straight-line depreciation with no change in the estimated residual value of the building. The building was judged to have a fair value on 1 July 2020 of $809,316. At the year-end date of 31" December 2020, the fair value of the building was estimated at $960,000. ii. Pablo uses the fair value model for investment property. Required What amount will be shown as revaluation surplus (deficit) on 31 December 2020 in respect of this building? Round your answer to the nearest $. Answer 1. What amount will be credited or debited to profit or loss for the year ended 31st December 2020? State whether this amount is a profit or…
Presented below are selected transactions for Rangers Ltd during the year 2021. 1 Jan. Sold equipment that was purchased on 1 July 2017. The equipment which cost $36,000 had a useful life of 10 years with no residual value. The equipment was sold for $18,000 on cash. 1 April Purchased motor vehicle on cash at $60,000. The motor vehicle is expected to have 10 years useful life with no residual value. 30 June Sold a machinery for $30,600 on cash that was purchased on 1 July 2015. The machinery cost $64,800 and was depreciated based on a 8-year useful life with a $10,800 residual value. 31 Dec. Sold land on cash for $800,000. The land was bought at $300,000 three years ago. Required: a) Ignore GST. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Rangers Ltd uses straight-line depreciation method for all its depreciable assets. The reporting period…
On January 2, 2017, Snug Clothing Consignments purchased showroom fixtures for $19,000 cash, expecting the fixtures to remain in service for five years. Snug has depreciated the fixtures on a double-declining-balance basis, with zero residual value. On October 31, 2018, Snug sold the fixtures for $8,200 cash. Record both depreciation expense for 2018 and sale of the fixtures on October 31, 2018. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Note that 2017 depreciation was recorded and posted in 2017.) Begin by recording the depreciation expense for January 1, 2018 through October 31, 2018. Date Oct. 31 Accounts and Explanation Debit Credit
Montblanc Company started its business operation on June 1, 2019 and showed the following data regarding the Fixed Assets as of December 31, 2020. - Office Equipment bought for P 120,000 on August 1, 2019, estimated useful life 6 years with no salvage value • Delivery Equipment with a depreciable cost of P 240,000, salvage value of P 30,000, with estimated useful life of 8 years. This was purchased on May 31, 2020. The company has a calendar year accounting period and uses the straight line method for depreciation to all its Fixed Assets. How much is the adjusted balance of the accumulated depreciation of the Delivery Equipment as at December 31, 2022?
Here are selected 2022 transactions of Concord Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $61,900 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2020. The computer cost $35,800 and had a useful life of 4 years with no salvage value. The computer was sold for $4,300 cash. Dec. 31 Sold a delivery truck for $9,450 cash. The truck cost $23,800 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $3,300 salvage value. Journalize all entries required on the above dated , including to update depreciation on assets disposed of, where applicable. Use straight-line depreciation.
Sheffield Company purchased machinery on January 1, 2020, for $93,600. The machinery is estimated to have a salvage value of $9,360 after a useful life of 8 years. (a) Your answer is incorrect. Compute 2020 depreciation expense using the sum-of-the-years'-digits method. Depreciation expense $ eTextbook and Media Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: unlimited (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answer