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2,000,000 1.700.000 20

2,000,000 1.700.000 20

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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There are list of assets of Multiverse Corporation: Estimated Date of Cost per Estimated salvage Depreciation purchase (acquisition) Assets Quantity unit ($) useful life value per Method unit ($) Land July, 1 2011 1 2,000,000 October, 1 Building 4 1,700,000 20 years 100,000 Straight Line 2012 March, 1 Units of Vehicle 1 240,000 100,000 km 40,000 2018 activity October, 1 Declining Machine 4 120,000 4 years 8,000 2018 Balance Declining Equipment June, 1 2019 4 100,000 4 years Balance Information about all assets in the company during 2021 as follow: A building was sold for $ 1,100,000 Three units of machine were sold at a price of @$ 30,000 April, 1 April, 30 June, 1 Two units of equipment were retired because they were not functioning properly September, 30 A vehicle was exchanged for a new vehicle. At the time of exchange, an old vehicle is valued at $ 64,000. The new vehicle has an estimated residual value of $ 10,000 and an estimated useful life of 200,000 km. New vehicle are depreciated using the unit of activity method. Until 2020, the old vehicle had been depreciated by 80,000 km. Early 2021 to September 30, 2021 the old vehicle have been depreciated by 5,000 km. Required: Journalize all transactions above and give your explanation for each transaction!
Transcribed Image Text:There are list of assets of Multiverse Corporation: Estimated Date of Cost per Estimated salvage Depreciation purchase (acquisition) Assets Quantity unit ($) useful life value per Method unit ($) Land July, 1 2011 1 2,000,000 October, 1 Building 4 1,700,000 20 years 100,000 Straight Line 2012 March, 1 Units of Vehicle 1 240,000 100,000 km 40,000 2018 activity October, 1 Declining Machine 4 120,000 4 years 8,000 2018 Balance Declining Equipment June, 1 2019 4 100,000 4 years Balance Information about all assets in the company during 2021 as follow: A building was sold for $ 1,100,000 Three units of machine were sold at a price of @$ 30,000 April, 1 April, 30 June, 1 Two units of equipment were retired because they were not functioning properly September, 30 A vehicle was exchanged for a new vehicle. At the time of exchange, an old vehicle is valued at $ 64,000. The new vehicle has an estimated residual value of $ 10,000 and an estimated useful life of 200,000 km. New vehicle are depreciated using the unit of activity method. Until 2020, the old vehicle had been depreciated by 80,000 km. Early 2021 to September 30, 2021 the old vehicle have been depreciated by 5,000 km. Required: Journalize all transactions above and give your explanation for each transaction!
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