1. A television company purchased machinery for BD20,000 in 2009. It isestimated to have a useful life of 10 years with a scrap value of BD4000.00,production unit of 40,000 and working hours of 12,000. The company alsoused this machinery to produce 4,400 units in 2010. Compute thedepreciation of the machine using service output method.2. Momhil Inc. bought a professional coffee machine costing 2100,000.00.0verits useful life it is estimated that it can process 5,000kgs of coffee or 200,000servings. Entity can salvage the machine 25,000 at the end of useful life.Calculate the depreciation for this year if the entity is using unit ofproduction method and it has: a) process 200 kg of coffee, b) served 15,000customers.NOTE: shuld be write formula before answer

Name: 1. A television company purchased machinery for BD20,000 in 2009. It
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: 1. A television company purchased machinery for BD20,000 in 2009. It isestimated to have a useful life of 10 years with a scrap value of BD4000.00,production unit of 40,000 and working hours of 12,000. The company alsoused this machinery to produce

Business

Accounting

1. A television company purchased machinery for BD20,000 in 2009. It is estimated to have a useful life of 10 years with a scrap value of BD4000.00, production unit of 40,000 and working hours of 12,000. The company also used this machinery to produce 4,400 units in 2010. Compute the depreciation of the machine using service output method.

1. A television company purchased machinery for BD20,000 in 2009. It is estimated to have a useful life of 10 years with a scrap value of BD4000.00, production unit of 40,000 and working hours of 12,000. The company also used this machinery to produce 4,400 units in 2010. Compute the depreciation of the machine using service output method.

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

A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life. In the first year, 15,000 bolts were produced. In the second year, production increased to 19,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year?
On 1 January 2010. A company purchased equipment for BD 230,000. The new machines have a useful life of five years, and the salvage value is estimated to be BD 30,000. The company has an estimation that the new machine can produce a total number of units 80,000. And expect to produce 20,000 units in its third year. Prepare the depreciation schedule for the machines using double decline method over the first 3 years from useful life.
In recent years, Larkspur Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Cost Salvage Value Useful Life (years) Depreciation Method 1 1/1/2020 $ 99,800 $ 13,000 8 Straight-line 2 7/1/2021 92,000 11,000 5 Declining-balance 3 11/1/2021 104,000 8,000 6 Units-of-activity For the declining-balance method, Larkspur Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 32,000. Actual hours of use in the first 3 years were 2021, 600; 2022, 4,700; and 2023, 6,700. Compute the amount of accumulated depreciation on each machine at December 31, 2023.
A machine with a cost of $750,000 has an estimated salvage value of $100,000) and an estimated useful life of 5 years or 30,000 hours. It is to be depreciated using the units-of-activity method of depreciation. The machine was used for 7,000 hours in the first year and 9,000 hours in the second year. Calculate the depreciation expense for the second year using the units of activity method. (Please round answer to the nearest dollar, i.e. 3,078.666 would be entered as 3,079)
Isabel Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an estimated useful life of 6 years. After depreciating the asset for two years using straight-line method of depreciation, the company upgraded the machine parts and the cost of upgrading amounted to P120,000. Assuming the upgrading costs improved the quality of the asset's output, what is the revised depreciation expense for the 3rd year?
Watkins Production purchased a new computerized machine at a cost of $450,000. The machine has a residual value of$64,000 and an expected life of 5 years. Calculate the depreciation expense, accumulated depreciation and book value for all 5 years ofthe machine's expected life using the straight-line method of depreciation
ABC Company finds its records are incomplete concerning a piece of equipment used in its plant. According to the company records, the equipment has an estimated useful life of 10 years and an estimated salvage value of Php24,000. It has recorded Php12,000 in depreciation each year using the straight-line method. If the accumulated depreciation account shows a balance of Php72,000, what is the original cost of the equipment and how many years remain to be depreciated?
Torge Company bought a machine for $66,800 cash. The estimated useful life was five years, and the estimated residual value was $5,600. Assume that the estimated useful life in productive units is 153,000. Units actually produced were 40,600 in year 1 and 45,900 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. Method of Depreciation Straight-line Units-of-production Double-declining-balance Depreciation Expense for Year 1 Year 2 Book Value at the End of Year 11 Year 2
At the beginning of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine’s useful life to be five years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 15,000 units were produced. Show your work below and then record the entries in the journal Calculate the depreciation using the: Straight-line method of depreciation Units-of-production method of depreciation Prepare the necessary December 31 adjusting entry to record depletion for the current year using the general journal.
On May 1, Oriole Company purchased factory equipment for $748700. The asset's useful life in hours is estimated to be 198000. The estimated salvage value is $35000 and the estimated useful life in years is 9. The machine was used for 23000 hours in the first year. If the straight-line method will be used, what is depreciation expense for the first year of the asset's life? O $52867 O $79300 O $55459 O $82800
Machinery was purchased for $400000. Freight charges amounted to $15000 and there was a cost of $34000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $50000 salvage value at the end of its 4-year useful life. Depreciation expense each year using the straight-line method will be $99750. $87750. $112250. Ⓒ$87500.
A television company purchased machinery for BD20,000 in 2009. It is estimated to have a useful life of 10 years with a scrap value of BD4000.00, production unit of 40,000 and working hours of 12,000. The company also used this machinery to produce 4,400 units in 2010. Compute the depreciation of the machine using service output method.