Bramble Company acquires a piece of equipment on April 1 with a total cost of $32,500. The company estimates that the equipment has an estimated useful life of 3 years with a residual value of $1,300 and a total life of 5 years with no salvage value. Bramble Company has a December 31 year end and uses straight line depreciation. (a) Assume that Bramble Company is a publicly traded company. What is the depreciable value of the equipment? Depreciable value $ Record the entry for the depreciation charge at year end. (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 debit entry before credit entry) Date December 31 Account Titles Debit Credit
Bramble Company acquires a piece of equipment on April 1 with a total cost of $32,500. The company estimates that the equipment has an estimated useful life of 3 years with a residual value of $1,300 and a total life of 5 years with no salvage value. Bramble Company has a December 31 year end and uses straight line depreciation. (a) Assume that Bramble Company is a publicly traded company. What is the depreciable value of the equipment? Depreciable value $ Record the entry for the depreciation charge at year end. (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 debit entry before credit entry) Date December 31 Account Titles Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
Please provide answer in text (Without image)
Transcribed Image Text:Bramble Company acquires a piece of equipment on April 1 with a total cost of $32,500. The company estimates that the equipment
has an estimated useful life of 3 years with a residual value of $1,300 and a total life of 5 years with no salvage value. Bramble
Company has a December 31 year end and uses straight line depreciation.
(a)
Assume that Bramble Company is a publicly traded company. What is the depreciable value of the equipment?
Depreciable value $
Record the entry for the depreciation charge at year end. (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 debit entry
before credit entry.)
Date
December
31
Account Titles
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education