A. On 1 Angust 2018, a company purchased new machinery with an estimated useful life of 10 years. Cost of the machinery was @55,000,with a residual value of $5000. Required: Compute the deprecaition on this machinery in 2018 and 2019 using the straight-line method and the half-year convention. (show working)   b. Amy Company sells equipment on 30 September 2018, for cash $20,000. The equipment originally cost $72000 and as of 30 September 2018 ,had accumulated depreciation of $42,000.   Required: (Explanation for thr journak entry is NOT required.)   Prepare the journal entry to record the sale of equipment.

Q: The following are the trial balance and the other information related to Bruce Culver, who operates…

A: Adjusting entries are accounting journal entries made following the completion of a trial balance at…

Q: On January 1st 2018 Farah Company purchased a machine at a list price of Rs. 100000.The installation…

A: Depreciation is the cost of use of a fixed asset during an accounting period. It indicates the cost…

Q: Lexes LLC bought an equipment on the 1st January 2015 at a cost of OMR 800,000. It is being…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Wan Company purchased a new machine on October 1, 2017, at a cost of $100,000. The company estimated…

A: Depreciation is an outlay which is reported in the books to reduce the asset's worth in the books…

Q: On January 1, 2018, Kefauver Company purchased a piece of equipment for $375,000. The equipment had…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: SABM Co. acquired a machine on January 1, 2018, at a cost of P120,000. It was expected to have a…

A: Revaluation account is prepared for the revaluing of fixed assets and helps in record the accurate…

Q: In January 2017, installation costs of $6,000 on newmachinery were charged to Maintenance and…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Jon Bonjovi Guitar Corp. purchased machinery on May 1, 2020. The following are provided concerning…

A: Declining Balance Method: Under this method, the company's assets are depreciated at an accelerated…

Q: J. Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: 1. Shay Enterprises purchased equipment on March 18, 2018, at a cost of $40,000. The equipment was…

A: Depreciation can be referred to as a decline in the value of asset due to its usage in the normal…

Q: was the gain/ loss on the sale of the machine?

A: Solution   Prepared the Machinery Account for Calculate the Gain or Loss on sale of Machinery

Q: Cullumber Company had the following assets on January 1, 2022. Item   Cost   Purchase Date…

A: Journal: Journal is the book of original entry. Journal consists of the day-to-day financial…

Q: Muaj & Company owns a machine that cost Tk. 200,000 when purchased on July 1, 2018. It has been…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: On Jan 2, JKM Co buys a $40,000 piece of equipment paying $15,000 down and signing a 4 year note for…

A: Fixed Assets: The assets that last longer than a year is classified as fixed assets. The consumption…

Q: On March 1, 2017 green company purchased a new piece of equipment for $210,000 cash. On March 1…

A: A reduction in the value of asset due to the normal usage in the the operation of the business  is…

Q: Asif Company acquired machinery on January 1, 2014 with an amount AED84,000. The useful life of the…

A: Depreciation represents the fall in the historical value of the fixed asset due to normal damage…

Q: Chicken Wings Company purchased a copier for P447,150 on January 1, 2021. The estimated useful life…

A: Since the change in useful life is a change in accounting estimate the effect will be given…

Q: Scott Company purchased equipment for $350,000 on 2020. It is estimated that the equipment will have…

A: Depreciation expense is a non cash expense and it is charged each year for the amount of asset…

Q: 3. On January 1, 2022, when the company changed its corporate strategy, its patent had estimated…

A: An impairment loss is the reduction in the carrying value of an asset and the decrease is higher…

Q: On January 2, 2021, Athol Company bought a machine for use in operations. The machine has an…

A: The total cost of acquiring a machine extends well beyond its initial buying price, encompassing a…

Q: On April 20, 2020, Maskell Co. purchased an asset costing $66,000 with a useful life of nine years…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: SABM Co. acquired a machine on January 1, 2018, at a cost of P120,000. It was expected to have a…

A: Depreciation expense is related to the drop in the value of an asset periodically because of the…

Q: ABC Ltd's financial year ends on 31 Dec. The company uses the straight-line depreciation method. The…

A: Property, plant, and equipment refers to those assets which are long-term in nature and are used by…

Q: Using the double - declining balance method, depreciation for 2018, and the book value at December…

A:

Q: Gray Corporation purchased a delivery van on March 1, 2020. Assume this van was the company's only…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: brown company purachsed eequipment in 2014 for $150000 and estimated a$10000 salvage value at the…

A: Given: Cost of equipment = $150,000 Salvage value = $10,000 Useful life = 10 year

Q: N company purchased a compilation system on jan 1, 2019 at a cash cost of $25,000. The estimated…

A: Solution:- Calculation depreciation using double declining balance depreciation method as follows:-…

Q: Great Value Company purchased equipment on January 1, 2020, for $75,000, with an estimated useful…

A: Given, Jan 1 2020 Purchase price = $75000 Life = 7 years Residual value = $ 5000 Sold @ July 1 2022

Q: Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Q: Duluth Ranch, Incorporated purchased a machine on January 1, 2021. The cost of the machine was…

A: Decrease in the value of an asset is called Depreciation, calculation of depreciation of above case…

Q: A microcomputer was purchased on January 1, 2017 at a cost of    $11,000. It is expected to have a…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. Straight line…

Q: Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $48,000. The…

A: Depreciation is the non-cash expense which is reported in the income statement of the entity. It is…

Q: An equipment costing Rs.122,050 was purchased on March 1, 2010. The estimated useful life was 10…

A: An equipment costing Rs.122,050 was purchased on March 1, 2010. The estimated useful life was 10…

Q: On January 1, 2015, Minco Coportation purchased, for $100,000, equipment having a useful life of the…

A: Depreciation = Total Cost of Equipment - Salvage ValueUseful life

Q: Sarasota Company sells equipment on September 30, 2022, for $20,600 cash. The equipment originally…

A: The accumulated depreciation is the depreciation charged on the assets till date. The book value of…

Q: K On January 2, 2016, Sweet Pet purchased fixtures for $50,800 cash, expecting the fixtures to…

A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.