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Depreciation expense,

Depreciation expense,

FINANCIAL ACCOUNTING
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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No 1 2 Date June 27, 2020 June 27, 2020 X Answer is not complete. General Journal Depreciation expense, boat - motor Accumulated depreciation, boat - motor Boat - motor (new) Accumulated depreciation, boat - motor Loss on disposal Boat - motor (old) Cash Debit 3,650 79,000 Credit 3,650 79,000
Transcribed Image Text:No 1 2 Date June 27, 2020 June 27, 2020 X Answer is not complete. General Journal Depreciation expense, boat - motor Accumulated depreciation, boat - motor Boat - motor (new) Accumulated depreciation, boat - motor Loss on disposal Boat - motor (old) Cash Debit 3,650 79,000 Credit 3,650 79,000
Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $116,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL Date of Purchase Apr. 9/12 Apr. 9/12 Cost $ 43,500 73,000 $116,500 Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. Est. Residual $9,000 -0- Est. Life 15 yr 10 yr On June 27, 2020, $79,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $4,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value.
Transcribed Image Text:Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $116,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL Date of Purchase Apr. 9/12 Apr. 9/12 Cost $ 43,500 73,000 $116,500 Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. Est. Residual $9,000 -0- Est. Life 15 yr 10 yr On June 27, 2020, $79,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $4,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value.
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