As of Dec. 31, 2020, Leonard Co. had machinery recorded in its books in the totalamount of P22,500,000.00 with an accumulated depreciation of P6,250,000.00.Leonard adopts the straight line depreciation method to account for the depreciationof its machinery. All of its machinery have a useful life of 10 years. On Apr. 1, 2021, amachine purchased for P575,000 on Apr. 1, 2015, was stolen. Lenard recoveredP387,500 from its insurance company. How much is the depreciation expense to berecognized for 2021?

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

Answered: As of Dec. 31, 2020, Leonard Co. had…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On June 1. 2018. KJ Corporation acquired equipment for $360,000. The estimated useful life of t equipment is 5 years or 40,000 hours. The estimated residual value is $30,000. What is the book value of the asset on December 31, 2020. if KJ Corporation uses the straight-line method of depreciation? O $189.500 $162.000 $144.000 $174.000 $184.000
On May 1, 2025, Crane Company purchased factory equipment for $739700. The asset's useful life in hours is estimated to be 190000. The estimated salvage value is $35000 and the estimated useful life in years is 9. The machine was used for 19000 hours in the first year. If the activity method is used, what is depreciation expense for 2025? (Round the depreciation rate to 4 decimal places e.g. 15.2578.) $52200 $70469 $78300 O $74269
ss
Oriole Company owns equipment that cost $120,000 when purchased on January 2, 2024. It has been depreciated using the straight- line method based on estimated residual value of $6,000 and an estimated useful life of five years. Following are the four independent situations. Assume depreciation has been recorded to the date of sale. (a) Prepare Oriole Company's journal entry to record the sale of the equipment for $55,100 on January 2, 2027. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles Jan. 2 Debit Credit
Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $90,000. The residual value of the equipment was estimated to be $6,000 at the end of a five-year life. The equipment was sold on March 31, 2024, for $18,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: Prepare the journal entry to record the sale. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale.
Sunland Corporation owns machinery that cost $25,200 when purchased on July 1, 2022. Depreciation has been recorded at a rate of $3,024 per year, resulting in a balance in accumulated depreciation of $10,584 at December 31, 2025. The machinery is sold on September 1, 2026, for $13,230. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale.
On September 19, 2020, Sunland Company purchased machinery for $478000. Salvage value was estimated to be $24000. The machinery will be depreciated over eight years using the sum-of-the-years'-digits method. If depreciation is computed on the basis of the nearest full month, Sunland should record depreciation expense for 2021 on this machinery of O $75667. O $102903. O $97736. O $97972.
Blossom Limited sold equipment on September 30, 2024, for $37,870 cash. The equipment originally cost $156,280 when purchased on January 1, 2022. It had an estimated residual value of $4,380 and a useful life of five years. Depreciation is recorded annually and was last recorded on December 31, 2023, the company's year end. (a) Prepare the journal entry to update depreciation using the straight-line method to September 30, 2024. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
On January 2, 2022, Sandhill Ltd. purchased equipment to be used in its manufacturing operations. The equipment has an estimated useful life of ten years, and an estimated residual value of $34000 It was also estimated that the equipment would be used a total of 71000 hours over its useful life. The depreciation expense for this equipment was $159040 for calendar 2023, using the units of production method. The machine was used for 8000 hours in 2023. The acquisition cost of the equipment was O $1713230. $1648490. $1143730. O $1445480.
Equipment was purchased for $83700 on January 1, 2021. Freight charges amounted to $4000 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $16000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used? O $16740. $13540. $28140. $33480.

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