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

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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 $
Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] 1 2 3 4 5 6 University Car Wash purchased new soap dispensing equipment that cost $231,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year Year 1 2 3 4 SSVI 5 6 Problem 7-5A (Algo) Part 2 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) Hours Used 2,900 1,800 1,900 2,100 1,900 1,900 Depreciation Expense UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Accumulated Depreciation Book Value Help
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Question Description The original cost of a machine was $60,000. After $45,000 of depreciation was recorded, the machine was traded in on a new machine of like purpose priced at $75,000. A $10,500 trade-in allowance was received on the old machine and the balance of $64,500 was paid in cash. Prepare the general journal entry to record this trade-in.
Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.) University Car Wash purchased new soap dispensing equipment that cost $219,000 including installation. The company estimates that the equipment will have a residual value of $19,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 Hours Used 2,800 1,400 1,500 2,500 2,300 2,000 4 Problem 7-5A (Algo) Part 1 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of Year Amounts Depreciation Expense Accumulated Depreciation Year Book Value
Saved Help Save & Exi Check Required information Enter your search term E8-4 (Algo) Determining Financial Statement Effects of an Asset Acquisition and Depreciation (Straight- Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $23,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 9 percent interest due in six months. On January 3, it paid $600 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,800. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,200. E8-4 Part 5 5. What would be the net book value of…