None Analyze each of the following transactions by showing its effects on the accounting equation-specifically, identify the accounts andamounts (including + or -) for each.January 1 Purchased equipment for $44,000 cash. Estimated useful life is six years and salvage value is $10,560.January 2 Paid $8,800 cash to install automated controls on equipment. This betterment did not impact useful life orsalvage value.August 15 Paid $350 cash for minor repair costs to equipment.DateJanuary 01January 01January 02January 02August 15Assets==II==။=Liabilities+Equity+++++

Part 2: ExplanationIn each transaction, we analyze the impact on the accounting equation by…

Answered: Analyze each of the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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Analyze each of the following transactions by showing its effects on the accounting equation-specifically, identify the accounts and amounts including or -) for each January 1 Purchased equipment for $45,000 cash. Estimated useful life is six years and salvage value is $10,000. January 2 Paid $9,000 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. August 15 Paid $340 cash for winor repair costs to equipment. Date January 01 January 01 January 02 January 02 August 15 Assets W = * Liabilities * 4 Equity
The following information was drawn from the accounting records of Chapin Company. 1. On January 1, Year 1, Chapin paid $56,000 cash to purchase a truck. The truck had a five-year useful life and a $6,000 salvage value. 2. As of December 31, Year 1, Chapin Company had a $68,000 balance in its Accounts Receivable account and a zero balance in its Allowance for Doubtful Accounts account. Sales on account for Year 1 amounted to $320,000. Chapin estimates that 5 percent of credit sales will be uncollectible. Required a. Record the year-end adjusting entry for depreciation expense on the truck in T-accounts. b. Determine the book value of the truck that will appear on the December 31, Year 1, balance sheet. c. Record the year-end adjusting entry of uncollectible accounts expense. d. Determine the net realizable value of receivables that will appear on the December 31, Year 1, balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C…
The ledger of Hillsboro Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Assume no adjusting entries were made in Januaray or February either. Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense Debit $ 3,600 3,053 26,200 -0- 15,330 Credit $ 8,921 20,600 7,500 54,170
A machine costing $75,000 is purchased on September 1, Year 1. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining-balance depreciation is used. If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include: A. A credit to gain on sale for $8,000. B. A debit to loss on sale for $2,625. C. A credit to accumulated depreciation for $59,375. D. A debit to loss on sale for $3,042. E. A credit to gain on sale for $4,979.
Hi, i need help with this question, thanks u On January 1, Simms Delivery purchased a truck for $38,000. The truck has an estimated useful life of 5 years and a $3,000 expected salvage value. Simms uses the straight-line method. Hint: Think what kind of balance expenses have and what kind of balances contra-assets account have. Prepare the adjusting entry for depreciation on December 31 of the year. (Show all calculations below the entry.) Date Description Post Ref Debit Credit Adjusting Entries January 1 Truck 38,000 2. Compute the book value at the end of the second year of the truck’s useful life. (Show all calculations in your answer.)
On January 2, Dixie, Incorporated, pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000.
You are an accountant for ABC Corp. Your purchasing department has procured products invoiced for $25,000 with 2/10 Net 30 terms. If you pay the invoice within 15 days, your payment would be: $25,500. $20,000. $24,500. $25,000. Accounting depreciation systematically allocates the cost of an asset in time over its useful life while economic depreciation deals with: The estimated loss of value of an asset minus the revenue it produces. The estimated salvage value of an asset at its end-of-life. The change of an asset’s value based on fair market price. The value of an asset matched to the revenue it creates indirectly.
DETL Corp. made an ordinary repair to a delivery truck with a remaining useful life of three years at a cost of $200. DETL's accountant debited the asset account, Equipment. Was this treatment an error, and if so, what will be the effect on DETL's financial statements?
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $250,000. b. Depreciation reported on the income statement, $135,000. C. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 30,000 shares of common stock were issued at $20 for cash. Cash dividends declared and paid, $45,000. f. Instructions 5 toment of cash flows, using the indirect method of presenting cash flows from op-
The following information was drawn from the accounting records of Chapin Company 1. On January 1, Year 1, Chapin paid $56,000 cash to purchase a truck The truck had a five year useful life and a $6,000 salvage value 2. As of December 31, Year 1, Chapin Company had a $68,000 balance in its Accounts Receivable account and a zero balance in its Allowance for Doubtful Accounts account Sales on account for Year 1 amounted to $320,000. Chapin estimates that 5 percent of credit sales will be uncollectible Required a. Record the year-end adjusting entry for depreciation expense on the truck in T-accounts. b. Determine the book value of the truck that will appear on the December 31, Year 1, balance sheet. c. Record the year-end adjusting entry of uncollectible accounts expense d. Determine the net realizable value of receivables that will appear on the December 31, Year 1, balance sheet
Match each item to a bank statement adjustment, a company books adjustment, or either.
Compute the following: al. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adjusting entry for the first year using the straight-line depreciation method. Omit explanations. If an amount box does not require, leave it blank. Page: 1 POST. DATE DESCRIPTION DEBIT CREDIT REF. 1 al. 2. 2. a2. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Compute the book value at the end of the second year of the equipment's life. Book Value $

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