9 of 3 ook int ences Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. View transaction list Journal entry worksheet < 1 2 3 Record the purchase of a used machine for $192,000 cash.. Date January 02 Note: Enter debits before credits. General Journal Debit Credit >

9 of 3 ook int ences Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. View transaction list Journal entry worksheet < 1 2 3 Record the purchase of a used machine for $192,000 cash.. Date January 02 Note: Enter debits before credits. General Journal Debit Credit >

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Description: 9of 3ookintencesOnslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wireelectricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. Themachine

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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Manufacturing Inc. purchased a machine on 1 January 20X2 for $520,000. The estimated physical life of the machine is 15 years, but the estimated useful life to Manufacturing is 10 years. The equipment has an estimated residual value of $29,560. The equipment was ready for use on 1 January 20X2. Required: 1. Calculate depreciation expense for 20X2 and 20X3 using the straight-line method. 20X2 20X3 Depreciation Expense $ 49,044 $ 49,044 2. Assume the machine is anticipated to produce 804,000 units. In 20X2 the machine produced 152,000 units and in 20X3 122,000 units. Calculate depreciation expense for 20X2 and 20X3 using the productive-output method. Depreciation Expense 20X2 20X3 3. Calculate depreciation expense for 20X2 and 20X3 using the declining-balance method using 40%. 20X2 Depreciation Expense 20X3
Required information Skip to question [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $144,000 cash on January 2. On January 3, Onslow paid $ 8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $17, 280 salvage value. Straight line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $24, 500 cash and (b) it is sold for $98, 000 cash.
Eight years ago, a company purchased an injection molding machine at $40,000. It has been depreciated according to conventional straight-line method (book depreciation) over a 12-year life. The estimated salvage value at the end of 12 years (from the purchase) was $4,000. The machine has a current market value of $15,000. Assume the company purchases a new machine at a cost of $50,000 with a salvage value of $5,000 and a 10 year life. The firm's income tax rate is 40% and their discount rate is 10%. What is the net depreciation tax shield during year three?
Can I please get assistance with this question and an explaination?(5.11) Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 3. Prepare journal entries to record the machine’s disposal under each separate situation: (a) it is sold for $23,000 cash and (b) it is sold for $92,000 cash. Record the sale of the used machine for $23,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record the sale of the used machine for $92,000 cash. Note: Enter debits before credits.…
Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 3. Prepare journal entries to record the machine’s disposal under each separate situation: (a) it is sold for $23,500 cash and (b) it is sold for $94,000 cash.
Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,000 cash and (b) it is sold for $80,000 cash. View transaction list Journal entry worksheet < 1 2 Record the sale of the used machine for $20,000 cash. Note: Enter debits before credits. Date December 31 General Journal Debit Credit
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9. Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Required:1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred.
10. Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 2. Prepare journal entries to record depreciation of the machine at December 31.
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Waylander Coatings Company purchased waterproofing equipment on January 6 for $591,600. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $48,800. The equipment was used for 3,500 hours during Year 1, 2,900 hours in Year 2, 1,700 hours in Year 3, and 1,100 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Note: Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 135,700 V 59 x Year 2 Year 3 24 Year 4 Total 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the…
A company used straight-line depreciation for an item of equipment that cost $16,950, had a salvage value of $4, 200 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,695 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:$3, 780. $6.485$1,275$4,200.$2,960.