21). April 1, 2018, LLM Shop purchased a machine asset costing $2,000,000 with a salvage value of$200,000 and an estimated life of 5 years using the sum-of-the-year method.January 1, 2020, LLM decided to revise estimated remaining life of 4 years and the salvagevalue of $0.January 1, 2021, LLM decided to change the depreciation method to straight-line method.March 31, 2022, LLM decided to sell this plant asset for $239,000.Required:(1). Prepare the depreciation entry for 2018/12/31.(2). Prepare the depreciation entry for 2019/12/31.(3). Prepare the depreciation entries for 2020/12/31.(4). Prepare the depreciation entries for 2021/12/31.(5). Prepare the sale entries for 2022/3/31

The objective of the question is to calculate the depreciation entries for the years 2018, 2019,…

Answered: 21). April 1, 2018, LLM Shop purchased…

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

Pier Exports purchased equipment on January 1, 2018, at a cost of $600,000. Thecompany estimates that there will be $60,000 salvage value and that the equipmentwill have a useful life of 8 years. The company elects to use the sum-of-the-years'digit method until 2021, at which time the company changes to the straight-linemethod of depreciation for the equipment. Required:1. The equipment's book value at January 1, 2021 is $ _________. Round your final answer to the nearest dollar.2. The annual depreciation expense for 2021 is $ _________. Round your final answer to the nearest dollar.
This one too for step by step 16. Assume that ABC Company purchased a new machine on January 1, 2018, for $96,000. The machine has an estimated useful life of nine years and a residual value of $6,000. Banker has chosen to use the straight-line method of depreciation. On January 1, 2020, ABC discovered that the machine would not be useful beyond December 31, 2023, and estimated its value at that time to be $4,000. Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2018 to 2023
Crane Company purchased a machine on July 1, 2020, for $900000. The machine has an estimated useful life of five years and a salvage value of $190000. The machine is being depreciated from the date of acquisition by the 150% declining-balance method. For the year ended December 31, 2020, Crane should record depreciation expense on this machine of O $106500. O $180000. O $270000. O $135000.
Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $48,000. The machine has an estimated life of five years and an estimated salvage value of $6,600. Required: a. Calculate the depreciation expense for each year of the asset's life using: 1. Straight-line depreciation. 2. Double-declining-balance depreciation. b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method? (Note: The machine will have been used for one-half of its first year of life.) c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required C Calculate the depreciation expense for each year of the asset's life using Straight-line depreciation. Depreciation Expense Year 1 2 3 4 5
Bonita Industries purchased a depreciable asset for $591000 on April 1, 2018. The estimated salvage value is $51000, and the estimated total useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold? $297000 $333000 $288000 $252000
Sheridan Towing Company purchased a tow truck for $188000 on January 1, 2020. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $36000. On December 31, 2022, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2022) and the salvage value to $5000. What was the depreciation expense for 2022?
Wildhorse Company purchaseda hot tub for $ 11,790 on January 1, 2016. Straight-line depreciation is used, based on a 6-year life and a $ 1,890 salvage value. In 2018, the estimates are revised. Wildhorse now feels the hot tub will be used until December 31, 2020, when it can be sold for $ 885. Compute the 2018 depreciation. Depreciation expense, 2018 %24
3. On August 31, 2019, CAMELLIA Company purchased a new machinery for ₱540,000. The machinery has an estimated useful life of 5 years and depreciation is computed using the SYD method. Estimated salvage value of the machine is ₱60,000. Question 1: What is the total accumulated depreciation on December 31, 2020? Question 2: If CAMELLIA decides to change its depreciation method to straight-line at the start of 2021, what is the depreciation expense for the year ended December 31, 2021?
On July 1, 2020, Concord Corporation purchased factory equipment for $28300O. Salvage value was estimated to be $7900. The equipment will be depreciated over five years using the double-declining balance method. Counting the year of acquisition as one-half year, Concord should record depreciation expense for 2021 on this equipment of O $58180. O $67920. O $90560. O $113200.
Alt Company purchased a new piece of manufacturing machinery on January 2, 2021. The machine had a total cost of $392,000 and an estimated salvage value of $125,000. Its useful life is estimated to be 6 years; over its life, it should produce 2,000,000 units of product. During 2022, the machine produced 309,000 units. Show calculations on tab for the amount of depreciation expense Alt will recognize in 2022 under straight-line, units-of-production, and double-declining depreciation methods. Depreciation was recorded normally for 2021. You are calculating depreciation for the second year in the machine’s life.
On July 1, 2019, Cullumber Company purchased new equipment for $90,000. Its estimated useful life was 6 years with a $12,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Compute the revised annual depreciation on December 31, 2022.
10) Hi-Crest Company purchased a machine on January 1, 2019, for $300,000. The machine has an estimated useful life of 5 years and a $10,000 residual value. Calculate depreciation expense and the year-end book value for 2019 and 2020 using the double declining-balance method of depreciation. Answer: Date 12/31/2019 12/31/2020 Depreciation Expense (for the year) Book Value (at the end of the year)

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS