The firm uses the straight line method of depreciation A firm purchases machinery, which has an estimateduseful life of 14 years and no salvage value, for$70,000 at the beginning of the accounting period.What is the adjusting entry for depreciation at theend of one month if the firm uses the straight-linemethod of depreciation?

Explanation of Depreciation:Depreciation is the systematic allocation of an asset's cost over its…

Answered: A firm purchases machinery, which has…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1CP

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A firm purchases machinery, which has an estimated useful life of 14 years and no salvage value, for $70,000 at the beginning of the accounting period. What is the adjusting entry for depreciation at the end of one month if the firm uses the straight-line method of depreciation?
A company sells a piece of equipment halfway through the accounting period. The straight-line rate of depreciation on the equipment is $40,000 per year. Before preparing the entry to record the sale of the equipment, the company should first debit: A. Depreciation Expense for $40,000 and credit Accumulated Depreciation for $40,000. B. Accumulated Depreciation for $40,000 and credit Cash for $40,000. C. Depreciation Expense for $20,000 and credit Accumulated Depreciation for $20,000. D. Cash for $20,000 and credit Depreciation Expense for $20,000.
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Crane Ltd. purchased a delivery truck on January 1, 2021, at a cost of $83,920. The truck is expected to have a residual value of $8,070 at the end of its 4-year useful life. Crane has a December 31 year end. Use the diminishing-balance method and assume the depreciation rate is equal to double the straight-line rate. (a) Calculate the depreciation for each year of the truck's life. (Round answers to O decimal places, e.g. 5,275.) Depreciation expense 2021 $ 2022 2$ 2023 $ 2024 $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
What amount will be reported for accumulated depreciation?
On January 1, Phillips Company paid $15,000 to purchase a large piece of equipment that will last 5 years. Required: 1. How much is depreciated by the end of the first year? 2. What will be the book value of the equipment at the end of the first year, after the adjusting entries have been prepared and posted? Note: Use straight-line depreciation and no salvage value.
Assume that Smith's Auto Sales paid $45,000 for equipment with a 15-year life and zero expected residual value. After using the equipment for six years, the company determines that the asset will remain useful for only five more years. Read the requirements LOADING... . Requirement 1. Record depreciation expense on the equipment for Year 7 by the straight-line method.
Assume that Smith's Auto Sales paid $45,000 for equipment with a 15-year life and zero expected residual value. After using the equipment for six years, the company determines that the asset will remain useful for only five more years. Read the requirements. Requirement 1. Record depreciation expense on the equipment for Year 7 by the straight-line method. First, select the formula to calculate the company's revised depreciation expense on the equipment for Year 7. Then enter the amounts and calculate the depreciation for Year 7. (Enter "0" for items with a zero value.) Revised depreciation ) + Record the depreciation on the equipment for Year 7. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Requirements 1. Record depreciation expense on the equipment for Year 7 by the straight-line method. 2. What is accumulated depreciation at the end of Year 7? Print Done Requirement 2. What is…
Assume that Smith's Auto Sales paid $45,000 for equipment with a 15-year life and zero expected residual value. After using the equipment for six years, the company determines that the asset will remain useful for only five more years. Read the requirements. Requirement 1. Record depreciation expense on the equipment for Year 7 by the straight-line method. First, select the formula to calculate the company's revised depreciation expense on the equipment for Year 7. Then enter the amounts and calculate the depreciation for Year 7. (Enter "0" for items with a zero value.) Date C ) + ) + Requirement 2. What is accumulated depreciation at the end of Year 7? The accumulated depreciation at the end of Year 7 is = ( Record the depreciation on the equipment for Year 7. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation Debit Credit Revised depreciation
On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method.
Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $41,000. The machine has an estimated life of five years and an estimated salvage value of $6,700.Required: Calculate the depreciation expense for each year of the asset's life using A. Straight-line depreciation. B. Double-declining-balance depreciation. 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.) Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method.
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A firm purchases machinery, which has an estimated useful life of 14 years and no salvage value, for $70,000 at the beginning of the accounting period. What is the adjusting entry for depreciation at the end of one month if the firm uses the straight-line method of depreciation?