Current Attempt in ProgressYour answer is partially correct.Pharoah Company owns equipment that cost $72,800 when purchased on January 1, 2022. It has been depreciated using the straight-line method based on an estimated salvage value of $5,600 and an estimated useful life of 5 years.Prepare Pharoah Company's journal entries to record the sale of the equipment in these four independent situations. (List all debitentries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)(a)Sold for $34,720 on January 1, 2025.(b)Sold for $34,720 on May 1, 2025.(c)Sold for $12,320 on January 1, 2025.(d)Sold for $12,320 on October 1, 2025.No. Account Titles and Explanation(a)CashDebit34720Credit

The objective of the question is to prepare the journal entries for the sale of equipment under four…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kingbird, Inc. acquires a delivery truck at a cost of $57,000 on January 1, 2022. The truck is expected to have a salvage value of $13,500 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight-line method. Annual depreciation expense Year 1 Year 2
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)
Earthmoving machinery was purchased for $75,000. The machine has an estimated useful life of 10 years. If its salvage value is estimated as $5,000, a. What is the Book Value (BV) of the asset at the end of the fourth year using the SL method? b. Using Double Declining Balance (DDB) method, which year and why you may be able to switch to the SL method.
Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $10,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Whispering Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) (d) (e) (f) (a) Sold for $59,000 on January 1, 2022. Sold for $59,000 on April 1, 2022. SR. Account Titles and Explanation (b) Sold for $21,000 on January 1, 2022. Sold for $21,000 on September 1, 2022. Repeat (a), assuming Whispering uses double-declining…
On January 1, 2022, Brent Tours purchased a new yacht for $2,100,000. The new yacht has an estimated useful life of nine years, and the residual value was estimated to be $75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Brent’s statement of financial position at December 31, 2022, net of accumulated depreciation, for this yacht? $Answer
Oriole Company owns equipment that cost $120,000 when purchased on January 2, 2024. It has been depreciated using the straight- line method based on estimated residual value of $6,000 and an estimated useful life of five years. Following are the four independent situations. Assume depreciation has been recorded to the date of sale. (a) Prepare Oriole Company's journal entry to record the sale of the equipment for $55,100 on January 2, 2027. (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.) Date Account Titles Jan. 2 Debit Credit
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Zorzi Company purchased a machine on July 1, 2018, for $28.000. Zorzi paid $200 in title fees and county property tax of $125 on the machine In addition, Zorzi paid $500 shipping charges for delivery and $475 was paid to a local contractor to build and wire a platform for the machine on the plant floor The machine has an estimated useful life of 6 years with a salvage value of $3.000 Determine the depreciation base of Zorzis new machine. Zorzi uses straight-line depreciation. $25,000 $26.000 $26 300 None of the above
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Name and briefly explain four methods of depreciation. Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine Date of Cost Date of Purchase Disposal Shs. MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of…
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This is business algebra please show your work so I will understand the question.

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