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

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

Name: Blossom Limited sold equipment on September 30, 2024, for $37,870 cas
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: 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 anestimated residual value of $4,380 and a useful life of five years. Depreciation is recorded a

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

Pina Co. purchased equipment for $422,400 which was estimated to have a useful life of 10 years with a salvage value of $11,200 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2026, it is determined that the total estimated life should be 15 years with a salvage value of $4,800 at the end of that time. (a) Prepare the entry (if any) to correct the prior years' depreciation. (b) Prepare the entry to record depreciation for 2026. (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.) No. Account Titles and Explanation Debit Credit (a) (b)
Beck man Enterprise purchased a depreciable asset on October 1, Year 1 at the cost of $152,000. The asset is expected to have a salvage value of $16300 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the assets book value on December 31,year 2 will be?
On January 2, 2021, Jatson Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $80,000 with an estimated residual value of $7,000. a-1. Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2021. a-2. Prepare a complete depreciation table under the 200 percent declining-balance method. Assume that a full year of depreciation was taken in 2021. Depreciation rate is 0,40) a-3. Prepare a complete depreciation table under the 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense. Assume that a full year of depreciation was taken in 2021. (depreciation rate is 0,30) WHAT IS THE REQ A3 CORRECT ANSWERS ? THERE ARE SOME ANSWERS WRONG.
Here are selected 2022 transactions of Ayayai Company. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $60,000 and had a useful life of 10 years with no salvage value. June 30 Dec. 31 Date Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Ayayai Company uses straight-line depreciation (Assume depreciation is up to date as of December 31, 2021.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Accumulated Depreciation Equipment Jan 1 Sold a computer that was purchased on January 1, 2019. The computer cost $35,000 and had a useful life of 5 years with no salvage value. The computer was…
Crane Company purchased machinery for $662400 on January 2, 2023. Straight-line depreciation has been recorded based on a $34200 salvage value and a 3-year useful life. The machinery was sold on March 2, 2025 at a gain of $10900. The journal entry to record the sale of the machinery will include a) a debit to Accumulated Depreciation - Equipment for $418800.b) a credit to Equipment for $208700.c) a credit to Gain on Disposal for $23300.d) a debit to Cash for $219600.
On January 2, 2021, Jatson Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $100,000 with an estimated residual value of $8,000. a-1. Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2021. a-2. Prepare a complete depreciation table under the 200 percent declining-balance method. Assume that a full year of depreciation was taken in 2021. Depreciation rate is 0,40) a-3. Prepare a complete depreciation table under the 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense. Assume that a full year of depreciation was taken in 2021. (depreciation rate is 0,30) Complete this question by entering your answers in the tabs below. Req A1) Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2021. Year Depreciation…
On January 1, 2018, Kefauver Company purchased a piece of equipment for $375,000. The equipment had a useful life of 10 years and a residual value of $10,000. The company initially starts recording depreciation on a straight-line method. The following independent situations occur at the beginning of 2020: The life of the equipment was originally estimated to be 10 years but due to the wear and tear on the machine they changed it to a remaining life of 7 years. а. b. It was discovered that when initially recorded on the books the residual value had been ignored. Required: Prepare all journal entries related to the equipment for 2020 for each of the independent situations, ignoring income taxes.
Lucky Lure Co. purchased a machine on October 1, 2018 for $125,000. It has a $15,000 residual value and a 10- year useful life. On July 1, 2020 the machine sold for $79,500. The company uses the double-declining-balance method of depreciation. The company fiscal year end is December 31. Instructions Prepare the journal entries for 2018 through 2020. Š A▾ B I
Cheadle Company purchased a fleet of 20 delivery trucks for $8,000 each on January 2, 2019. It decided to use composite depreciation on a straight-line basis and calculated the depreciation from the following schedule: 1. Prepare the journal entries necessary to record the preceding events. 2. Assume that the company expected all the trucks to last 4 years and be retired for $1,600 each. Using group depreciation, prepare journal entries for all 6 years, assuming the company retired the trucks as shown by the latter schedule.
Marigold Industries presents you with the following information. Complete the table for the year ended December 31, 2027. The company depreciates all assets using the half-year convention. (Round answers to O decimal places, e.g. 45,892.) Description Machine A Machine B Machine C Machine D Date Purchased 2/12/25 8/15/24 7/21/23 Cost $148,200 89,600 227,760 (c) Salvage Value $16,640 21,840 25,000 71,760 Life in Years 10 5 8 5 Depreciation Method SL DDB SYD (a) Accumulated Depreciation to 12/31/26 $34,684 30,160 72,800 (e) Depreciation for 2027 (b) (d) (f) (h)
Swann Company sold a delivery truck on April 1, Year 5. Swann had acquired the truck on January 1, Year 1, for $44,000. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. Swann uses the straight-line method of depreciation. At December 31, Year 4, the truck had a book value of $11,200. 1b. Prepare the necessary journal entries on April 1, Year 5 to record: 1. Depreciation expense of the delivery truck for Year 5 2. The sale of the truck, assuming it sold for $7,600
On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has a 8-year life with a residual value of $16,000. Harding uses straight-line depreciation. Required: (a) Calculate the depreciation expense and provide the journal entry for the first year ending December 31.* (b) Calculate the third year’s depreciation expense and provide the journal entry for the third year ending December 31.* (c) Calculate the last year’s depreciation expense and provide the journal entry for the last year.* *Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Harding Construction General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 119 Prepaid Insurance 120 Land 121 Equipment 122 Accumulated Depreciation 132 Goodwill 133 Patents LIABILITIES 210 Accounts Payable 211…