1. What is the depreciation Expense balance on December 31st of the first year of operations?a. 6000b. 57000c. 6300d. 630002. What is the unearned Revenue balance on December 31st of the first year of operation?a. 2000b. 40000c. 0d. 42000 ABC Inc. established its operation at January 1st, 2014.A) Enter all necessery Journal Entries that occured during the year.B) Then prepare the adjusting entries, closing entries, financials, worksheet & T accounts.1) In January, Initial stock issuance2) January, bought Equipment for $63000, 10 years life, $3000 residual value3) November, paid total utility bills4) In January, paid in advance rent for two years:5) In February, received prepayment from a customer for service to be provided:6) Dec. 31st 2014, unearned revenue balance7) In December, Dividend declared$450,000$63,000$8,500$12,000$42,000$2,000$10,000$3,000

The question is related to the Depreciation Expenses and unearned Revenue. The Depreciation is…

1. What is the depreciation Expense balance on December 31st of the first year of operations? a. 6000 b. 57000 c. 6300 d. 63000 2. What is the unearned Revenue balance on December 31st of the first year of operation? a. 2000 b. 40000 c. 0 d. 42000

1. What is the depreciation Expense balance on December 31st of the first year of operations? a. 6000 b. 57000 c. 6300 d. 63000 2. What is the unearned Revenue balance on December 31st of the first year of operation? a. 2000 b. 40000 c. 0 d. 42000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 6) An asset was bought for OMR.12,000. Its accumulated depreciation is OMR.7,700 and the rate of…

A: Fixed asset: It is a long-term asset used in the business for long period and is depreciated for its…

Q: huctor Eopnant acqued on January ata cot of 30 ss0 han an estimated unete f years and an…

A: Depreciation expense Cost - residual value / useful life of asset Book value Cost - accumulated…

Q: Refer to the information shown in the table below. Each column in the table represents the…

A: The five depreciation method are as follows: 1. UOP: Unit of production method where depreciation is…

Q: 4-In verzical analy sis the base amount for depreciation expense is generally: (b)depteciation…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Montana Mining Company pays $4,203,370 for an ore deposit containing 1,538,000 tons. The company…

A: Depletion = Depletion quantity * Depletion rate per time = 134,500 * (4,203,370 / 1,538,000) =…

Q: Prior to adjustment at the end of the year, the balance in Trucks is $405,400 and the balance in…

A: Units of output method In this method of depreciation, the depreciation expense is calculated by…

Q: A. Make the December 31 adjusting journal entry for depreciation. B. Determine the net book value…

A: Depreciation is the reduction in the value of a tangible fixed asset due to reasons such as…

Q: A certain assets has an estimated life of 30 years. The denominator for sum-of-the-year's-digits…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: How was the 268914 for depreciation and accumulated depreciation calculated? Ihave the same double…

A: Depreciation - Depreciation is charged to the fixed assets of the company for use, wear and tear,…

Q: How should an expenditure for an ordinary repair to factory equipment be re accumulated…

A: The expense of keeping and restoring an item, often machinery, equipment, or property, to its normal…

Q: Which method of computing depreciation expense results in the same amount of depreciation each year?…

A: Different methods of depreciation : 1. straight line method 2. Double declining balance method 3.…

Q: Equipment acquired at a cost of $104,000 has an estimated residual value of $6,000 and an estimated…

A: Solution: Depreciation rate - SLM = 1/10 = 10% Depreciation rate - DDB =10%*2 = 20%

Q: Equipment Acquired on 01/01/2000, @ 26000 with 10 Years life.

A: Formula: Depreciation rate = 2 X ( 100 / Useful life years )

Q: What are all the years of the depreciation “schedule" (i.e., percentages by year) for the Modified…

A: Depreciation is an annual income tax deduction that allows an organization to recover the cost or…

Q: How much is the yearly depreciation using the straight line method A 950,400 B 936,000 C 860,400…

A: Lets understand the basics. As per IAS 16 "property, plant and equipment" cost of asset not only…

Q: The depreciation allowance for a $100,000 MACRS-GDS asset was $8,550 after its 3rd year. What was…

A: The Modified Accelerated Cost Recovery System-General Depreciation System (MACRS)GDS) is used to…

Q: Prior to adjustment at the end of the year, the balance in Trucks is $425,600 and the balance in…

A: The depreciation rate per mile is calculated as follows:The depreciation expense is calculated as :

Q: Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years-digits…

A: Depreciation means the reduction in the value of an asset over the life of the assets due to wear…

Q: Asset value on Jan 01 is $ 500000, Salvage value after 10 years is 25000. Compute accumulated…

A: Business organizations are required to charge the depreciation expense on their assets so that the…

Q: A. Equipment acquired on the first day of the current fiscal year for $100,000 has an estimated of…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On…

A: Annual Depreciation-Straight line=Cost of the asset-Residual valueUseful life

Q: Discussion Question 8-6 (LO. 2) How is cost recovery computed for an asset, in the year it is placed…

A: If the mid-quarter convention applies, the property is treated as though it were disposed of at the…

Q: 16) For the Declining Balance Method of depreciation, the depreciated amount of an asset stays the…

A: Depreciation is the amount of reduced value of an asset with the time period.

Q: An example of straight-line depreciation is: Select one: Year 1: $500 ; Year 2: $500 ; Year 3:…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Year Depreciation Expense Year 1 Year 2 Year 3 b. What was the book value of the equipment on…

A: Solution a: Annual depreciation using SLM = (Cost - Salvage value) / useful life = ($262,200 -…

Q: Yoric Company listed the net changes in its balance sheet accounts for the past year as follows:…

A: Cash Flow Statement of Cash Flow includes the inflow and outflow of cash during the financial year.…

Q: 3. Morell Company acquired a property costing P300,000 during the beginning of the year. It has a…

A: Under Declining Balance Method, Depreciation Rate = 1 - (Residual Value / Cost)^(1 / Useful Life)

Q: 2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the…

A: Business organizations are required to charge the depreciation expense so as to shown the value of…

Q: The mid-month convention applies to...

A: The mid-month convention states that all fixed asset acquisitions are assumed to have been purchased…

Q: 1. Under Unit of Production Method of Calculating Depreciation, if there is no production in any…

A: Unit of Production Method This method of charging depreciation on the asset is based on the units…

Q: Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of…

A: a) Straight line method: Depreciation = =843,750-72,6005=$154,230 Year DepreciationExpense…

Q: A heincome More Info Requirements On January 4. 2018. Baley Enterprises. Inc. paid S205.600 for…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: What was the annual amount of depreciation for the Years 1-3 using the straight-line method of…

A: The question is based on the concept of Financial Accounting. Depreciation is the accounting term…

Q: Asset value on Jan 01 is $ 500000, Salvage value after 10 years is 25000. Compute accumulated…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: It charges the same amount of expense to each period of the asset's useful life. This referes to…

A: Solution- Straight line depreciation is a common method of depreciation where the value of a fixed…

Q: Following information provided related to an Equipment: • Book value (beginning of the year) OMR…

A: The Written Down Value (WDV) method is a technique of charging depreciation on an asset. In this…

Q: Please answer properly

A: The depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…

Q: Depreciation by Two Methods A Kubota tractor acquired on January 8 at a cost of $144,000 has an…

A: Straight line method means where same amount of depreciation is charged every year. Under declining…

Q: 1. SYDM: A property that is book-depreciated over a 10-year period by the Sum of Years Digit Method…

A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…

Q: stin

A: A depreciation expense adjustment entry is a journal entry made at the end of a period to reflect…

Q: On April 22, 2023, Carla Vista Enterprises purchased equipment for $137.720. The company expects to…

A: Depreciation is the reduction in the value of asset due to normal wear and tear and passage of…

Q: Instructions Equipment acquired on January 6 at a cost of $532,255, has an estimated useful life of…

A: A. Computation of the annual amount of depreciation for Years 1-3: Using Straight-line method,…

Question

1. What is the depreciation Expense balance on December 31st of the first year of operations?

a. 6000

b. 57000

c. 6300

d. 63000

2. What is the unearned Revenue balance on December 31st of the first year of operation?

a. 2000

b. 40000

c. 0

d. 42000

ABC Inc. established its operation at January 1st, 2014.
A) Enter all necessery Journal Entries that occured during the year.
B) Then prepare the adjusting entries, closing entries, financials, worksheet & T accounts.
1) In January, Initial stock issuance
2) January, bought Equipment for $63000, 10 years life, $3000 residual value
3) November, paid total utility bills
4) In January, paid in advance rent for two years:
5) In February, received prepayment from a customer for service to be provided:
6) Dec. 31st 2014, unearned revenue balance
7) In December, Dividend declared
$450,000
$63,000
$8,500
$12,000
$42,000
$2,000
$10,000
$3,000

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1Basic Information

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

9. Compute for the depreciation in the first year using double declining method. a. 40,000 c. 72,000 b. 36,000 d. 80,000 10. How much is the book value of the equipment as of end of second year using output method of depreciation? a. 360,000 c. 301,500 b. 341,500 d. 230,000
1. Determine the annual depreciation expense for each of the estimated 5 years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. a. Straight-line method Additional Instruction Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 2 3 4 5 b. Double-declining-balance method Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 2 3 4 5 New lithographic equipment, acquired at a cost of $859,200 on March 1 at the beginning of a fiscal year, has an estimated useful life of 5 years and an estimated residual value of $96,660. The manager requested…
A. Br1,600 B. Br2,000 C. Br5.600 D. Br14,400 6. On July 1. 20X1, Clem Company purchased lactory equipment for br50,000, Residual value was estimated to be br2.000. The equipment will be depreciated over ten years using the sum-of- the-years'-digits depreciation method. Clem has a December 31 year-end, and during 20X1, one- half of a year's depreciation expense was recorded. How much depreciation expense should be recorded for 20X2? (round computations to the pearest dollar) A. Br7,855 do00 B. Br8,291 C. Br8,636 D, Br8,727 7. Which of the following expenditures incurred in connection with the acquisition of equipment is not a proper charge to the asset account? A) Freight or transportation costs. B) Cost of test runs to ready the machine for operation C) Taxes and tariffs D) Cost of vandalism E) B and D 8. If the Double-declining depreciations rate of a plant asset is 50%, then its estimated life will be: A. 50 years. B) 10 years C) 5 years D) 4 years E) None of the above Part II:…
Original Cost POST. ... Accumulated Depreciation for Previous Years DATE DESCRIPTION REF. DEBIT CREDIT ... Book Value, Beginning Year 4 1 20xx ... Salvage Value 2 2. ... Revised Remaining Depreciation Cost 3 ... 4 Revised Useful Life 15 YEARS Revised Depreciation, Total Revised Depreciation, Per Year ...
Pharoah Company purchases equipment on January 1, Year 1, at a cost of $267,000. The asset is expected to have a service life of 5 years and a salvage value of $20,000.
12. How is the matching principle related to the recording of depreciation on tangible operational assets? A. The matching principle requires a company to use the same depreciation. B. Once a particular depreciation method is adopted for a particular asset, the owner must continue to use the same method. C. The accountant who calculates the depreciation may assume that the company will continue in business as long as the estimated useful life of the asset. D. A portion of the cost of the asset should be allocated as an expense for the periods in which the asset helps the business to earn revenue.
Please explain how you arrived at the accumulated depreciation figure at 5.2
(c) Compute the amount of depreciation for each of Years 1 through 3 using the depreciation rate to 2 decimal places, e.g. 15.84% and final answers to 0 decimal places, e.g. 45,892.) Depreciation for Year 1 Depreciation for Year 2 Depreciation for Year 3 eTextbook and Media LA $ $ LA double-declining-balance method. (Round $ Assistance Us
Complete the Sum of depreation Useful 8 учет Sum of Sum of years digits method of Depreciation Rate Year 1 Year 3 A 个 Fraction Year 5 ↑
how to find the book value for december 31 and accumulated depreciation