91 Reporting and Recording the Disposal of a Long-Lived Asset (Straight-Line Depreciation) As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc., sold shelving units (recorded as Equipment) that were 10 years old for $800 cash. The shelves originally cost $6,400 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $400. Assuming that depreciation has been recorded to the date of sale, show the effect of the disposal on the accounting equation. Prepare the journal entry to record the sale of the shelving units. LO 9-5 109.6

91 Reporting and Recording the Disposal of a Long-Lived Asset (Straight-Line Depreciation) As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc., sold shelving units (recorded as Equipment) that were 10 years old for $800 cash. The shelves originally cost $6,400 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $400. Assuming that depreciation has been recorded to the date of sale, show the effect of the disposal on the accounting equation. Prepare the journal entry to record the sale of the shelving units. LO 9-5 109.6

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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7 m Winston Churchill Construction Co. purchased a state-of-the-art excavator for $62,000. The company expected the equipment to last eight years or 100,000 miles, with an estimated residual value of $4,000 at the end of that time. During the fourth year the equipment was driven 32,000 miles. Compute the depreciation for the fourth year under units of activity method
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Instructions Chart of Accounts General Journal Instructions Computer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is now sold for $60,000 cash. (Appropriate entries for depreciation had been made for the first six years of use.) Required: Journalize the following entries: a. Record the depreciation for the one-half year prior to the sale, using the straight-line method. b. Record the sale of the equipment.* C. Assuming that the equipment had been sold for $25,000 cash, prepare the entry to record the sale.* *Refer to the Chart of Accounts for exact wording of account titles. Previous Next
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Required information Skip to question [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 34,100 units of product. Determine the machine’s second-year depreciation and year end book value under the straight-line method.
An asset purchased 1 January 20x4, costing $10,000, with a 10-year useful life and no salvage value, was depreciated using the straight-line method during its first three years. During 20x7, the total useful life was re-estimated to be 17 years. What is the amount of depreciation expense in 20x8? Multiple Choice $500 $412
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