1. What us the Depreciation Expense-Equipment balance in the trial balance?a. 0b. 12000c. 60000d. 60002. Total Trial Balance on the debit side is:a. 530000b. 52000c. 502000d. 492000 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

Name: 1. What us the Depreciation Expense-Equipment balance in the trial bal
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: 1. What us the Depreciation Expense-Equipment balance in the trial balance?a. 0b. 12000c. 60000d. 60002. Total Trial Balance on the debit side is:a. 530000b. 52000c. 502000d. 492000 ABC Inc. established its operation at January 1st, 2014.A) Enter all

T-Account A collection of financial documents that employ double-entry accounting are referred to…

Answered: 1. What us the Depreciation…

Business

Accounting

1. What us the Depreciation Expense-Equipment balance in the trial balance? a. 0 b. 12000 c. 60000 d. 6000 2. Total Trial Balance on the debit side is: a. 530000 b. 52000 c. 502000 d. 492000

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: Use the following data to determine the total dollar amount of assets to be classified as property,…

A: Property, plant and equipment are the assets that are owned by the company for more than one year.…

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: Which of the following depreciation methods initially ignores salvage value in its calculation?…

A: Depreciation is a way of declining the cost of assets over the useful life of assets, the company…

Q: how did you get the Equipment depreciation expense

A: Depreciation is an account used to allocate capital expenditure on assets over the period of useful…

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 of the following would be classified as an intangible asset on the balance sheet? Mutiple…

A: These are the long-term assets that are not physical in nature but possess value. The intangible…

Q: Depreciation expense for a period is the a. original cost of an asset - accumulated depreciation. b.…

A: Depreciation is defined as the allocation of the depreciable ( Cost- Residual value/ Useful life)…

Q: Ivanhoe Limited purchased a machine on account on April 1, 2021, at an invoice price of $378,380. On…

A: Depreciation is the decline value of asset due to its use or wear and tear. Depreciation is charged…

Q: Determining Fixed Asset's Book Value The balance in the equipment account is $3,900,000, and the…

A: Depreciation expense refers to the cost of fixed asset which has reduced due to usage or wear and…

Q: Depletion expense a. is usually part of cost of goods sold b. includes tangible equipment in the…

A: Depletion expense It is a technique used to allocate the cost of extracting natural resources. It is…

Q: AASB 116 – Property, Plant and Equipment standards explain the accounting treatment of increment and…

A: Increments and decrements in non-current assets happen after the revaluation of assets. When the…

Q: Depreciation of an asset based on the number of hours of usage is a(n) (a). time-based method (b).…

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

Q: 86. Amortization of unidentified intangible assets is in terms of A. O Conservatism concept B.…

A: The conservatism principle, also known as the principle of prudence, is one of the fundamental…

Q: Q4. Critically evaluate the approach adopted under IAS 38 in accounting for intangible assets. Your…

A: Definition of Intangible assets intangible asset is an identifiable , non monetary , without…

Q: Hw would you best define an intangible asset? A. Assets that dont impact the company's valuation…

A: Intangible Assets has no physical existence but they still add revenue generation for the company It…

Q: Compute depreciation using units-of-production method with residual value FlavorRite purchased a…

A: Depreciation expense is the amount of expense which is charged on the non-current assets in order to…

Q: First cost Book depreciation life MACRS property class Salvage value n 1 2 3 4 5 6 7 8 A $8,000…

A: Depreciation is used to record expenses of asset over the life of asset. There are various methods…

Q: On April 1, a patent with an estimated useful economic life of 12 years was acquired for $57,600. In…

A: Formula; Annual Amortization=Acquisition costUseful life

Q: Under what depreciation method(s) is an asset’s bookvalue used to calculate depreciation each…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: Make a schedule for all the examples for the following Depreciation Method through excel: a.…

A: Depreciation- As a financial asset is used up, depreciation takes place. Various forms of real…

Q: 32 Which of the following information is necessary to apply the straight-line method of depreciation…

A: Depreciation is used to record reduction in value of asset over the period of time. It can be…

Q: Determine the machine's second-year depreciation and year end book value under the straight-line…

A: Here's how to determine the second-year depreciation and year-end book value under the straight-line…

Q: QUESTION 17 Which of the following is the most likely journal erry to record the amortisation of an…

A: Amortization of Intangible Assets:- it means expensing the total cost of Intangible assets such as…

Q: An international financial reporting standard concerning depreciation states that: 1. The…

A: The monetary value of an asset decreases over time due to use, wear and tear, this is known as…

Q: 4. Depletion expense a. is usually part of cost of goods sold b. includes tangible equipment in the…

A: Depletion expense is the cost incurred on resources. It can be cost of extraction or cost of…

Q: On January 1, 2021, Culver Company purchased on credit machinery costing $180,000 and incurred…

A: The question is related to Depreciation Accounting of Fixed Assets. General Information givenCost of…

Q: depreciation schedules for each machine

A: Depreciation reduces the value of a property over a particular period of time. It is an important…

Q: Equipment that cost 412000 and on which 191000 of accumulated depreciation has been recorded was…

A: Banks play an active role in the capital market. Banks are active participants in the financial…

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: 97. The portion of the acquisition cost of an asset yet to be allocated is known as A. Written down…

A: Acquisition Cost is the value at which the asset is acquired. The cost of acquisition is the total…

Q: a. Match each of the principles and phases in the development of an accounting system with the…

A: Assets are any resource owned by an entity which provide future benefit. Tangible assets are those…

Q: The book value of the asset sold is calculated as a. Book Value = Cost – Sale Value b. Book Value =…

A: The book value of the asset is calculated by subtracting Accumulated Depreciation from the Original…

Q: Q23 What is process that is done in HRA, the same way like that of any other physical asset? In…

A: Accounting is essential to operating a company since it allows businesses to track income and…

Q: 25. In which of the following method of depreciation, the amount of depreciation remains constant?…

A: The depreciation on fixed assets can be calculated using various methods as: Reducing balance…

Q: Recording depreciation for a plant asset conforms to which accounting principle/assumption? OA.…

A: Depreciation is the process through which a company spreads the cost of an asset over its useful…

Q: The salvage value is a component of the calculation of the double declining balance (DDB)…

A: Double declining balance method of depreciation is a method by which the asset is depreciated at a…

Q: How did you find the depreciation rate to be 16.67%

A: Depreciation is used to allocate capital expenditure on assets over the use of life of an asset.…

Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

100%

1. What us the Depreciation Expense-Equipment balance in the trial balance?

a. 0

b. 12000

c. 60000

d. 6000

2. Total Trial Balance on the debit side is:

a. 530000

b. 52000

c. 502000

d. 492000

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 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Match
Q: Accumulated depreciation represents: Select one: O a. The depreciation taken on fixed assets for one year O b. The decline in value on Property, Plant, and Equipment O c. The depreciation taken since the asset was purchased O d. The loss from damage on an asset
Which depreciation method would result in the same depreciation expense amount regardless of the partial period cor Select one: a. Sum-of-the-years'-digits b. Declining-balance c. Units-of-production d. Straight-line
Which of the following is true? O The book value at the end of an asset's useful life will be the same under all the depreciation methods allowed under generally accepted accounting principles. The annual depreciation expense will usually differ under the various depreciation methods. The total depreciation in the accumulated depreciation account will be the same at the end of the asset's useful life under all the methods allowed under generally accepted accounting principles. O All are true.
On the balance sheet, accumulated depreciation is:   Group of answer choices subtracted from property and equipment. added to total liabilities. added to property and equipment. subtracted from total liabilities.
When calculating depreciation expense using the straight line method, useful life is expressed as time dollars Units expected to be produced salvage value Next *
How would accumulated depreciation be classified on the balance sheet? current asset fixed asset current liability O long term liability
create 2 problems (required must vary) for each type of depreciation. 1. Straight Line Method 2. Sinking Fund Method 3. Declining Balance Me. d 4. Sum of the Year's Digit Method
Determining Fixed Asset's Book Value The balance in the equipment account is $3,100,000, and the balance in the accumulated depreciation—equipment account is $1,581,000. a. What is the book value of the equipment?$fill in the blank 1 b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $1,581,000? , because depreciation is an allocation of the of the equipment to the periods benefiting from its use.
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
Subject - account Please help me