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,

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,

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...

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On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and amortization expense to the nearest whole year. During 2020, Vail engaged in the following transactions: Required: 1. Check the accuracy of the accumulated depreciation balances at December 31, 2019. Round to the nearest whole dollar in all requirements. 2. Prepare journal entries to record the preceding events in 2020, as well as the year-end recording of depreciation expense. 3. Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance.
On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.
Using the following information: A. make the December 31 adjusting journal entry for depreciation B. determine the net book value (NBV) of the asset on December 31 Cost of asset, $250,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $25,000
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
Sheridan Company purchased equipment for $7190 on December 1. It is estimated that annual depreciation on the equipment will be $1560. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: Debit Depreciation Expense, $5630; Credit Accumulated Depreciation, $5630. Debit Equipment, $7190; Credit Accumulated Depreciation, $7190. Debit Depreciation Expense, $1560; Credit Accumulated Depreciation, $1560. Debit Depreciation Expense, $130; Credit Accumulated Depreciation, $130.
Bramble Company purchased equipment for $31200 on December 1. It is estimated that annual depreciation on the equipment will be $7800. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: A) Debit Equipment, $31200; Credit Accumulated Depreciation, $31200. B) Debit Depreciation Expense, $650; Credit Accumulated Depreciation, $650. C) Debit Depreciation Expense, $23400; Credit Accumulated Depreciation, $23400. D) Debit Depreciation Expense, $7800; Credit Accumulated Depreciation, $7800.
Sheffield Corp. purchased equipment for $15900 on December 1. It is estimated that annual depreciation on the computer will be $3180. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: debit Depreciation Expense, $12720; credit Accumulated Depreciation, $12720. debit Depreciation Expense, $3180; credit Accumulated Depreciation, $3180. debit Equipment, $15900; credit Accumulated Depreciation, $15900. debit Depreciation Expense, $265; credit Accumulated Depreciation, $265.
An asset's book value is $25,200 on January 1, Year 6. The asset is being depreciated $350 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $17,900, the company should record:
Study the information given below and answer the following questions:5.1 Calculate the profit or loss on the disposal of the equipment. 5.2 Prepare the following note to the financial statements as at 28 February 2020:* Property, plant and equipment INFORMATIONThe following balances appeared in the general ledger of Umzinto Traders on 01 March 2019, the beginning of the financial year:RVehicles 300 000Accumulated depreciation on vehicles 140 000Equipment 130 000Accumulated depreciation on equipment 75 000Additional information1) A new vehicle, cost price R160 000, was purchased on credit on 01 December 2019.2) Equipment with a cost price of R10 000, was sold for cash on 31 August 2019 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2019.3) Depreciation is calculated on equipment at 10% per annum on cost.4) Depreciation is calculated on vehicles at 20% per annum on the diminishing balance.
On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. On December 29, 2021, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation.
On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop- down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet 1 On December 29, 2021, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Note: Enter debits before credits. Date Dec. 29 General Journal Debit Credit