BE 203 Yakima Co. purchased equipment on May 1, 2016 for $7,704. The company expects to use the equipment for 6 years. It has no salvage value. 1. What adjusting journal entry should the company make at the end of each month if monthly financials are prepared (annual depreciation is $1,284)? 2. What is the book value of the equipment at May 31, 2016?

BE 203 Yakima Co. purchased equipment on May 1, 2016 for $7,704. The company expects to use the equipment for 6 years. It has no salvage value. 1. What adjusting journal entry should the company make at the end of each month if monthly financials are prepared (annual depreciation is $1,284)? 2. What is the book value of the equipment at May 31, 2016?

Name: BE 203Yakima Co. purchased equipment on May 1, 2016 for $7,704. The c
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: BE 203Yakima Co. purchased equipment on May 1, 2016 for $7,704. The company expects to use theequipment for 6 years. It has no salvage value.1. What adjusting journal entry should the company make at the end of each month if monthlyfinancials are pr

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

Chahal Company’s fiscal year-end is December 31. The company purchased a machine costing $129,000 on April 1, 2022. The machine is expected to be obsolete after five years (60 months), and thereafter no longer useful to the company. The estimated salvage value is $6,000. The company’s depreciation policy is to record depreciation for the portion of the year that the asset is in service. Compute depreciation expense for 2022 under the straight‑line depreciation method. (Round your answer to the nearest whole number. Do not include a $ sign in your answer.)
Sandhill Co. sells office equipment on July 31, 2022, for $22,430 cash. The office equipment originally cost $77,870 and as of January 1, 2022, had accumulated depreciation of $36,830. Depreciation for the first 7 months of 2022 is $4,580.Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment.
Beaver Construction purchases new equipment for $50,400 cash on April 1, 2024. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no resale or scrap value at the end. Beaver depreciates equipment evenly over the 84 months ($600/month). Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of Accumulated Depreciation and Depreciation Expense (assuming the balance of Accumulated Depreciation at the beginning of 2024 is $0). Complete this question by entering your answers in the tabs below. Required 1 and 2 Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Required 3 View transaction list Journal entry worksheet
Kaila Corporation purchased a truck for 225,000 on January 1, 2017. It was originally depreciated on a straight-line basis over 10 years with an assumed residual value of 45,000. On December 31, 2019, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2019) and the residual value to 7,500. What was the depreciation expense for 2019?
Indigo Company is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you. 1. 2. 3. 2019 2018 Straight-line $29.700 $29,700 Declining-balance 52.800 66,000 (a) Indigo purchased equipment on January 2, 2017, for $89,600. At that time, the equipment had an estimated useful life of 10 years with a $4,600 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2020, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $2,800 salvage value 1. During 2020, Indigo changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $330,000. It had a useful life of 10 years and a salvage value of $33,000. The following computations present depreciation on both bases for 2018 and…
Skysong Corp. purchased machinery on January 1, 2019 for $692,000. Straight-line depreciation is used. At the time management estimated that the machinery would be used over 10 years and would have a residual value of $47,000. It is now December 31, 2023 and management has determined that the machine's life is now a total of 12 years with no residual value. No adjusting journal entries have been recorded yet for the 2023 year-end.
On October 1, 2015, PCU Company purchased machinery for P1,900,000. Salvage value was estimated to be P100,000. The machinery will be depreciated over eight years using the sum-of –years’ digits method. If depreciation is computed based on the nearest full month, how much should PCU record as depreciation expense for 2020?
On April 1, 2021, Metro Co. purchased machinery at a cost of $42,000. The machinery is expected to last 10 years and to have a residual value of $6,000. Required: Compute depreciation for 2021 (for 9 months, 4/1/21 ~ 12/31/21) assuming the sum-of-the-years'-digits method is used. No credit if no computation is shown.
Presented below are selected transactions at Marigold Corp. for 2020. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2010. The machine cost $64,600 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2017. The computer cost $37,800. It had a useful life of 5 years with no salvage value. The computer was sold for $13,600. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2016. The truck cost $40,440. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Marigold Corp. uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order…
[The following information applies to the questions displayed below.] NewTech purchases computer equipment for $267,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $25,000. rev: 07_27_2017_QC_CS-94103 Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.
Sheffield Company purchased machinery on January 1, 2020, for $93,600. The machinery is estimated to have a salvage value of $9,360 after a useful life of 8 years. (a) Your answer is incorrect. Compute 2020 depreciation expense using the sum-of-the-years'-digits method. Depreciation expense $ eTextbook and Media Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: unlimited (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answer
A company purchases new equipment for $60,000 cash on August 1, 2021. At the time of purchase, the equipment is expected to be used in operations for four years (48 months) and have no resale or scrap value at the end of the four years. The company depreciates the equipment evenly over the 48 months ($1,250/month). Record the adjusting entry for depreciation on December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 View transaction list Journal entry worksheet 1 Record the adjusting entry for depreciation on December 31, 2021. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Record entry Clear entry View general journal