CP9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9- 2, LO 9-3) At the beginning of the year, Young Company bought two used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A $7,600 200 1,500 400 Machine B $25,608 600 1,200 350 Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began By the end of the first year, each machine had been operating 7,000 hours. Required: 1. Compute the cost of each machine. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Estimates Machine Life Residual Value Depreciation Method 48,800 hours 5 years $ 600 1,080 Straight-line Units-of-production Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the cost of each machine. Cost of Machine Machine A Machine B

CP9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9- 2, LO 9-3) At the beginning of the year, Young Company bought two used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A $7,600 200 1,500 400 Machine B $25,608 600 1,200 350 Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began By the end of the first year, each machine had been operating 7,000 hours. Required: 1. Compute the cost of each machine. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Estimates Machine Life Residual Value Depreciation Method 48,800 hours 5 years $ 600 1,080 Straight-line Units-of-production Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the cost of each machine. Cost of Machine Machine A Machine B

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Description: CP9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods (LO 9-2, LO 9-3]At the beginning of the year, Young Company bought two used machines from Vince, Inc. The machines immediately were overhauled,were installed

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Required information CP9-1(Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Soldano.com bought machinery, shelving, and a forklift. The machinery initially cost $32,000 but had to be overhauled (at a cost of $2,480) before it could be installed (at a cost of $1,240) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $510 in each year. The shelving cost $10,100 and was expected to last 5 years, with a residual value of $760. The forklift cost $18,000 and was expected to last six years, with a residual value of $2,320. CP9-1 (Algo) Part 2 2. Compute year 2 units-of-production depreciation expense for the machinery. (Do not round intermediate calculations.) X…
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7 Graw Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Shamrock Unlimited bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 2 2. Compute year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value. Answer is complete but not entirely correct. Year 2 straight-line depreciation expense 2.140 x Type here to search $9,400 840 720 590 $
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PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Cruz & Turner Corporation bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Coat of the asset. Installation costs Renovation costs prior to use Repairs after production began. PA9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for Machine A. Total cost $ $10,700 970 1,110 850 0