Homework Help is Here – Start Your Trial Now!
Business
Accounting
5 of 5: B: Swifty, Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2024 for $10,300,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2025, new technology was introduced that would accelerate the obsolescence of Swifty's equipment. Swifty's controller estimates that expected future net cash flows on the equipment will be $6,489,000 and that the fair value of the equipment is $5,768,000. Swifty, intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Swifty uses straight-line depreciation. A: Prepare the journal entry (if any) to record the impairment at December 31, 2025. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Not need to answer: it is correct. Dec 31 Loss on impairment Accumulated depreciation - equipment Debit 1957000 Credit Debit 1957000 B: Prepare the journal entry for the equipment at December 31, 2026. The fair value of the equipment at December 31, 2026, is estimated to be $6,077,000. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Please answer the following DATE ACCOUNT TITTLE AND EXPLANATION Credit

5 of 5: B: Swifty, Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2024 for $10,300,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2025, new technology was introduced that would accelerate the obsolescence of Swifty's equipment. Swifty's controller estimates that expected future net cash flows on the equipment will be $6,489,000 and that the fair value of the equipment is $5,768,000. Swifty, intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Swifty uses straight-line depreciation. A: Prepare the journal entry (if any) to record the impairment at December 31, 2025. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Not need to answer: it is correct. Dec 31 Loss on impairment Accumulated depreciation - equipment Debit 1957000 Credit Debit 1957000 B: Prepare the journal entry for the equipment at December 31, 2026. The fair value of the equipment at December 31, 2026, is estimated to be $6,077,000. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Please answer the following DATE ACCOUNT TITTLE AND EXPLANATION Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Note:-

  • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
  • Answer completely.
  • You will get up vote for sure.
5 of 5: B: Swifty, Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2024 for $10,300,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2025, new technology was introduced that would accelerate the obsolescence of Swifty's equipment. Swifty's controller estimates that expected future net cash flows on the equipment will be $6,489,000 and that the fair value of the equipment is $5,768,000. Swifty, intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Swifty, uses straight-line depreciation. 115 A: Prepare the journal entry (if any) to record the impairment at December 31, 2025. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Not need to answer: it is correct. Dec 31 Loss on impairment Debit 1957000 Credit Accumulated depreciation - equipment B: Prepare the journal entry for the equipment at December 31, 2026. The fair value of the equipment at December 31, 2026, is estimated to be $6,077,000. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Please answer the following DATE ACCOUNT TITTLE AND EXPLANATION Debit 1957000 Credit
Transcribed Image Text:5 of 5: B: Swifty, Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2024 for $10,300,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2025, new technology was introduced that would accelerate the obsolescence of Swifty's equipment. Swifty's controller estimates that expected future net cash flows on the equipment will be $6,489,000 and that the fair value of the equipment is $5,768,000. Swifty, intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Swifty, uses straight-line depreciation. 115 A: Prepare the journal entry (if any) to record the impairment at December 31, 2025. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Not need to answer: it is correct. Dec 31 Loss on impairment Debit 1957000 Credit Accumulated depreciation - equipment B: Prepare the journal entry for the equipment at December 31, 2026. The fair value of the equipment at December 31, 2026, is estimated to be $6,077,000. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Please answer the following DATE ACCOUNT TITTLE AND EXPLANATION Debit 1957000 Credit
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Impairment of Assets
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
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