A piece of equipment costing $3,000 was stolen. The insurance company reimbursed the company $1,000. The accumulated depreciation on the equipment amounted to $1,000 Journal Entry
Q: Diaz Company owns a machine that cost $125,900 and has accumulated depreciation of $92,800. Prepare…
A: Gain/loss on sale of machine = Cost - Sales price - Accumulated depreciation
Q: Calvin Corporation’s office was burglarized. The thieves stole 10 laptop computers and other…
A: Book value of asset is calculated by subtracting accumulated Depreciation from cost of asset.…
Q: A truck costing $114000 was destroyed when its engine caught fire. At the date of the fire, the…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Houston’s Shredding Service has just completed a minor repair on a shredding machine. The repair…
A: INTRODUCTION: Depreciation is the deliberate, progressive decline in the reported value of an asset…
Q: Morrell Corporation sold a computer at the end of its useful life for $300. The computer had an…
A:
Q: Calvin Corporation’s office was burglarized. The thieves stole 10 laptop computers and other…
A: Calculation of Gain or loss:- Particulars Amount (A) Original cost of laptop computers $35,000…
Q: Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Murphy Fumiture purchased land, paying $60,000 cash and signing a $290,000 note payable. In…
A: Cost of land = Cash paid + Note payable issued + Property tax + Title insurance + Level of land
Q: Alfredo's Pizza Cafe acquires an oven on January 1 of Year 1 for $10,000. Alfredo's capitalizes this…
A: From the given Question: Cost of Asset on January 1 - Year 1 = $10,000 Use full Life…
Q: COD Company finds its records are incomplete concerning a piece of equipment used in its plant.…
A: Formula: Straight line method Depreciation : = Cost of Asset - Salvage value ) /Useful life
Q: Dlaz Company owns a machine that cost $126,300 and has accumulated depreciation of $94,400. Prepare…
A: Gain (loss) on sale of Machinery = Sales value - Net book value of the Machinery where, Net book…
Q: On July 1, 2017, Sandhill Company received $1,012,000 cash as compensation for the forced sale…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: The engine of a truck burned out and needed to be replaced two years after it was originally…
A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…
Q: Shannon Miller, Inc. purchased land, paying $90,000 cash as a down payment and signing a $120,000…
A: Land and building are the non-current or long term assets which are shown in the balance sheet.…
Q: On July 1, 2017, Carla Vista Company received $990,000 cash as compensation for the forced sale…
A: JOURNAL ENTRY IS AN ART OF RECORDING BUSINESS TRANSACTION EITHER ECONOMIC OR NON ECONOMIC . 1.…
Q: On July 23 of the current year, Dakota Mining Company pays $7,469,280 for land estimated to contain…
A: Depletion expense for a period is calculated by using the total number of units generated by the…
Q: Diaz Company owns a machine that cost $126,600 and has accumulated depreciation of $90,500. Prepare…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: A fire occurred in the City of Pasay and coincided with the looting of stock of plywood of a lumber…
A: Given that fire occurred which results in loss of stock of lumber Company
Q: Diaz Company owns a machine that cost $125,100 and has accumulated depreciation of $90,600. Prepare…
A: Formulas: Gain (Loss) on the sale of the assets = Sale value of the assets - Net book value of the…
Q: Bill's Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $1,180,…
A: Answer - As the Expenditure incurred on building enhanced the life of the assets given it has to…
Q: Montana Mining Company pays $3,234,950 for an ore deposit containing 1,553,000 tons. The company…
A: It's the first step in the double- entry clerk system and involves taking down the financial goods…
Q: iaz Company owns a machine that cost $250,000 and has accumulated depreciation of 182,000. Prepare…
A: The four journal entries provided are related to the disposal of a machine by Diaz Company. The…
Q: Diaz Company owns a machine that cost $126,900 and has accumulated depreciation of $93,300. Prepare…
A: Journal Entry :— It is an act of recording transactions in books of account when the transaction…
Q: Montana Mining Company pays $3,021,910 for an ore deposit containing 1,479,000 tons. The company…
A: Depletion: It refers to the allocation of the cost or expense that is incurred by the business in…
Q: Onslow Company purchased a used machine for $144,000 cash on January 2. On January 3, Onslow paid…
A: Depreciation is a technique used to reduce an asset's book value by taking into account its…
Q: Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare…
A: Accumulated depreciation: The total amount of depreciation expense deducted, from the time asset…
Q: Diaz Company owns a machine that cost $126,500 and has accumulated depreciation of $92,000. Prepare…
A: Journal entries describe how transactions influence accounts and balances and serve as a simple…
Q: 1. Determine the cost of the land, land improvements, and building. 2. Which of these assets will…
A: Introduction:- Capitalization costs includes the following as follows under:- Initial testing costs…
Q: Due to rapid employee turnover in the accounting department, the following transactions involving…
A: Intangible assets are non-physical assets that have no inherent value and cannot be touched or seen.…
Q: Diaz Company owns a milling machine that cost $125,200 and has accumulated depreciation of $90,700.…
A: Carrying Amount of Asset = cost - Accumulated Depreciation Gain/Loss on Sales = Sale Price -…
Q: Ayer Industries, Inc., purchased land, paying $95,000 cash as a down payment and signing a $170,000…
A: Land cost includes Purchase price (includes price paid for any old existing building that is to…
Q: Tamarisk Inc. owns equipment that cost $ 638,000 and has accumulated depreciation of $ 165,000. The…
A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, The…
Q: On July 23 of the current year, Dakota Mining Company pays $7,121,760 for land estimated to contain…
A: Depreciation:Depreciation simply refers to the contineous decline in the depreciable value of…
Q: Milloy Furniture purchased land, paying S85,000 cash and signing a $310,000 note payable. In…
A: Depreciation can be define as an expense which calculates the value of fixed assets which…
Q: Sage Hill Inc. owns equipment that cost $594,000 and has accumulated depreciation of $154,000. The…
A: Impairment loss occurs when the carrying value is less than the recoverable amount.
Q: Rossy Investigations purchased land, paying $97,000 cash plus a $250,000 note payable. In Addition,…
A: Cost of the land include purchase price of the land, any related expenses such as closing costs,…
Q: Diaz Company owns a machine that cost $125,700 and has accumulated depreciation of $93,300. Prepare…
A: Asset disposal is basically an act of selling an asset (usually a long term asset) that has been…
Q: Sandhill company owns equipment that cost $120,000 when purchased on January 1, 2018. It has been…
A: Depreciation is a measure of wearing out of assets from its use efflux over time or obsolete through…
Q: Bill’s Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $990,…
A: The objective of the question is to calculate the book value of the tow truck and the building after…
Q: Belvidere Furniture purchased land, paying $95,000 cash and signing a $280,000 note payable. In…
A: Capitalization costs includes the following as follows under:- Initial Testing Costs Costs of…
Q: lisposal of the machine on January 1 in each separate situation. The machine needed extensive…
A: Solution: Journal entry: Date General Journal Debit $…
A piece of equipment costing $3,000 was stolen. The insurance company reimbursed the
company $1,000. The
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Calvin Corporation’s office was burglarized. The thieves stole 10 laptop computers andother electronic equipment. The lost assets had an original cost of $35,000 andaccumulated tax depreciation of $19,400. Calvin received an insurance reimbursementof $10,000 related to the theft loss.RequiredDetermine the amount and character of gain or loss recognized as a result of this theft.Note: Enter a loss with a minus sign.Calvin Corporation’s office was burglarized. The thieves stole 10 laptop computers andother electronic equipment. The lost assets had an original cost of $35,000 andaccumulated tax depreciation of $19,400. Calvin received an insurance reimbursementof $10,000 related to the theft loss.RequiredDetermine the amount and character of gain or loss recognized as a result of this theftA truck costing $114000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $55000. An insurance check for $129000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a credit to the Accumulated Depreciation account for $55000. credit to the Truck account of $59000. Gain on Disposal of $15000. Gain on Disposal of $70000.
- A truck costing $114000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $55000. An insurance check for $129000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a O credit to the Truck account of $59000. ○ credit to the Accumulated Depreciation account for $55000. ○ Gain on Disposal of $70000. ○ Gain on Disposal of $15000. eTextbook and MediaA company purchased a commercial dishwasher by paying cash of $4,800. The dishwasher's fair value on the date of the purchase was $5,190. The company incurred $490 in transportation costs, $380 installation fees, and paid a $160 fine for illegal parking while the dishwasher was being delivered. For what amount will the company record the dishwasher?A company had a building destroyed by fire. The building originally cost $650,000 and its accumulated depreciation as of the date of the fire was $300,000. The company received $400,000 cash from an insurance policy that covered the building and will use that money to help rebuild. Prepare the single journal entry to record the destruction of the building and the receipt of cash from the insurance company.
- Houston’s Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,010, and the book value prior to the repair was $4,750. In addition, the company spent $6,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $89,300 and related Accumulated Depreciation account at $44,300. After the work was completed, what book value should Houston’s report on the balance sheet for the shredding machine and the building? Book Value Shreddding Machine BuildingDiaz Company owns a machine that cost $126,300 and has accumulated depreciation of $91,700. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. Diaz sold the machine for $17,000 cash. Diaz sold the machine for $34,600 cash. Diaz sold the machine for $41,200 cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01Blake furniture recently purchased new equipment for its plant. The list price of the equipment was $40,000.Company paid sales taxes of $2,100 at the date of purchase. Freight charges for theequipment totaled $680. Installation and training costs related to the equipment amounted to $900. During installation, one of the pieces of equipment was accidentally damaged by an employee. It cost $400 to repair this damage. Blake furniture will depreciate this equipment by the straight-line method (half-year convention) and 150% declining balance method over an estimated useful life of 4 years assuming a $3,000 scrap value. Prepare depreciation schedules
- Blake furniture recently purchased new equipment for its plant. The list price of the equipment was $40,000.Company paid sales taxes of $2,100 at the date of purchase. Freight charges for theequipment totaled $680. Installation and training costs related to the equipment amounted to $900. During installation, one of the pieces of equipment was accidentally damaged by an employee. It cost $400 to repair this damage. Blake furniture will depreciate this equipment by the straight-line method (half-year convention) and 150% declining balance method over an estimated useful life of 4 years assuming a $3,000 scrap value. Prepare depreciation schedules. Give reasons for switching to straight line method in both the accelerated methods. Management wants to report the highest possible earnings in its financial statements, yet it also wants to minimize its taxable income reported to the tax authorities. Explain how both of these objectives can be met. Depreciation is often considered as…On December 31, 2021, a machine owned by SLP COMPANY was destroyed by a fire. SLP COMPANY incurred removal and clean-up costs of P40,000. The machine had a book value of P450,000 and a fair value of P510,000 at the time of the fire. The machine was insured “new to old” and was replaced by the insurance company with a new one currently selling at P560,000. The loss due to fire to be reported in the 2021 income statement isOn January 1, year one, Newport Corp. purchases a machine for $100,000. The machine is depreciated using the straight-line method over a ten-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Newport's year-one financial statements, resulting in a $10,000 overstatement of the book value of the machine on December 31, year one. The oversight was discovered during the preparation of Newport's year-two financial statements. What amount should Newport report for depreciation expense on the machine in the year-two financial statements? $10,000 $20,000 $11,000 $9,000