Equipment acquired on January 1, 2014, is sold on June 30, 2018, for $11,200. The equipment cost $46,500, had an estimated residual value of $6,400, and an estimated useful life of 5 years. Thecompany prepares financial statements on December 31, and the equipment has been depreciated using the straight-line method. On June 30, 2018, the company should record DepreciationExpense of:O A. $0.O B. $8,020.C. $4,650.O D. $2,005.

The depreciation expense is charged on the fixed assets as reduction in the value of the fixed…

any prepares financial statements on December 31, and the equipment has been depreciated using the straight-line method. On June 30, 2018, the company should record Depreciati se of: $0. $8,020. $4,650. ID

any prepares financial statements on December 31, and the equipment has been depreciated using the straight-line method. On June 30, 2018, the company should record Depreciati se of: $0. $8,020. $4,650. ID

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Shannon Company began operations on January 1, 2020. The financial statement contained the following errors: YEAR 2020- Ending inventory 160,000 understated; Depreciation expense 60,000 understated; Insurance expense 100,000 overstated; Prepaid insurance 100,000 understated; YEAR 2021 - Ending inventory 150,000 overstated; Insurance expense 100,000 understated. On December 31, 2021, fully depreciation machinery was sold for P110,000 cash but the sale was not reported until 2022. No corrections have been made for any of the errors. Ignoring income tax, what amount should be reported as net effect of the errors on Retained Earnings on December 31, 2021? a. 100,000 over b. 100,000 under c. 200,000 over d. 200,000 under
Using the following information, Make the December 31 adjusting journal entry for depreciation. Determine the net book value (NBV) of the asset on December 31. Cost of asset, $195,000 Accumulated depreciation, beginning of year, $26,000 Current year depreciation, $13,000
The following trial balance was extracted from the ledger of Juliana at 31 December 2020. Juliana Trial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000 Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases…
Bramble Company purchased equipment for $15600 on December 1. It is estimated that annual depreciation on the equipment will be $3900. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: O Debit Depreciation Expense, $11700; Credit Accumulated Depreciation, $11700, O Debit Depreciation Expense, $3900; Credit Accumulated Depreciation, $3900. O Debit Equipment, $15600; Credit Accumulated Depreciation, $15600. O Debit Depreciation Expense, $325; Credit Accumulated Depreciation, $325.
On July 1, 2020, Bridgeport Corporation purchased Johnson Company by paying $189,700 cash and issuing a $64,500 note payable to Steve Johnson. At July 1, 2020, the balance sheet of Johnson Company was as follows. Cash $38,100 Accounts payable $160,000 Accounts Receivable 67,500 Stockholders' equity 165,800 Inventory 75,800 $325,800 Land 29,400 Buildings (net) 55,200 Equipment (net) 52,200 Copyrights 7,600 $325,800 The recorded amounts all approximate current fair values except for land (worth $45,400), inventory (worth $94,900), and copyrights (worth $11,300).
On June 15, 2024, Perfect Furniture discarded equipment that had a cost of $8,000, a residual value of $0, and was fully depreciated. Journalize the disposal of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Jun. 15 Accumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Equipment Gain on Disposal Loss on Disposal Maintenance Expenses Debit Credit
Coronado Company is in the process of preparing its financial statements for 2022. Assume that no entries for depreciation have been recorded in 2022. The following information related to depreciation of fixed assets is provided to you. Coronado purchased equipment on January 2, 2019, for $86,300. At that time, the equipment had an estimated useful life of 10 years with a $5,300 residual value. The equipment is depreciated on a straight-line basis. On January 2, 2022, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $2,800 1. residual value. 2. During 2022, Coronado changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $300,000. It had a useful life of 10 years and a residual value of $30,000. The following computations present depreciation on both bases for 2020 and 2021. 2021 2020 Straight-line $27,000 $27,000 Declining-balance 48,000…
Presented below is information related to equipment owned by Sheridan Company at December 31, 2020. Cost $9,630,000 Accumulated depreciation to date 1,070,000 Expected future net cash flows 7,490,000 Fair value 5,136,000 Assume that Sheridan will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the transaction on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2017 enter a debit amount enter a credit amount…
Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $10,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Whispering Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) (d) (e) (f) (a) Sold for $59,000 on January 1, 2022. Sold for $59,000 on April 1, 2022. SR. Account Titles and Explanation (b) Sold for $21,000 on January 1, 2022. Sold for $21,000 on September 1, 2022. Repeat (a), assuming Whispering uses double-declining…
On 30 June 2021, the carrying amounts of the assets of a CGU are as follows: Assets Cash $10,000 $30,000 ($5,000) $50,000 $200,000 (S80,000) $400,000 ($120,000) $25,000 Accounts Receivable Allowance for doubtful debts Inventories Machinery Accumulated depreciation - machinery Building Accumulated depreciation - building Goodwill Additional information on 30 June 2021: The recoverable amount of the unit is assessed to be $460,000. The receivables are considered to be collectable, except those considered doubtful. The fair value of building is $265,000. Required: Prepare all necessary journal entries to record the impairment loss of the CGU for the year ended 30 June 2021.lgnore any tax effect.
Equipment was purchased by Metlock Manufacturing on January 1, 2025, for $112500. Metlock's policy is to adjust its accounts at year-end. Which is the appropriate adjusting journal entry to record depreciation at year-end if the company expects to use the equipment for five years with no salvage value? Depreciation Expense Accumulated Depreciation - Equipment Accumulated Depreciation - Equipment 22500 Equipment 22500 Accumulated Depreciation - Equipment 22500 Depreciation Expense Depreciation Expense - Equipment Equipment 22500 22500 22500 22500 22500
Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending 12/31/X7. Required: In the general journal below, complete the year-end entry to record depreciation. Debit Credit Dec 31 ? 40,000 ? 40,000