Dinnell Company, with a June 30 year-end, owns the following assets:Aс2017"2019$20,000$100,0005 years10 years$2,000$10,000Depreciation method Straight-line Sum-of-the-years-digits Double-declining-balanceYear purchasedCostAssetBExpected lifeResidual value2018$40,0008 yearsIn the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold t$7,000.Required:Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A

Depreciation is considered an expense charge on the value of the Asset. It can be calculated by…

Dinnell Company, with a June 30 year-end, owns the following assets: A с 2017" 2019 $20,000 $100,000 5 years 10 years $2,000 $10,000 Depreciation method Straight-line Sum-of-the-years-digits Double-declining-balance Year purchased Cost Asset B 2018 $40,000 8 years Expected life Residual value In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for $7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A

Dinnell Company, with a June 30 year-end, owns the following assets: A с 2017" 2019 $20,000 $100,000 5 years 10 years $2,000 $10,000 Depreciation method Straight-line Sum-of-the-years-digits Double-declining-balance Year purchased Cost Asset B 2018 $40,000 8 years Expected life Residual value In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for $7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2019, Chiz Company acquired equipment to be used in its manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated residual value of P50,000. The depreciation applicable to this equipment was P240,000 for 2021 computed under the sum of years' digits method. What was the acquisition cost of the equipment?
An asset is placed in service on May 15, 2020 and has a depreciable basis of $40,000. The asset is in the 7-year recovery class and the half-year convention applies. What is the maximum depreciation deduction that may be claimed for 2020, assuming no election to expense and no bonus depreciation? a. $5,144 b. $5,716 c. $25,000 d. $2,572 e. None of these choices are correct.
At December 31, 2021, the following existed on the records of Chai Co..: Accumulated Depreciation: $3,970,000 Fixed Assets: $8,600,000 During the year ended September 30,2022, fixed assets with a written down value of $370,000 was sold for $490,000. The pant had originally cost $800,000. Fixed assets purchased during the year cost $1,800,000. It is the company's policy to charge a full year's depreciation in the year of acquisition of an asset and none in the year of sale. Chogiwa uses 10% rate on a straight-line basis. Compute for the net amount (book value) of fixed assets should appear in the statement of financial position as of September 30, 2022.
The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at the end of 2020 are shown here. Equipment Beg. bal. 80,600 Disposals 23,800 Acquisitions 40,000 End. bal. 96,800 Accumulated Depreciation—Equipment Disposals 8,700 Beg. bal. 47,800 Depr. exp. 13,300 End. bal. 52,400 In addition, Luo’s income statement reported a loss on the disposal of plant assets of $6,100. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment $
Jaen Advertising Inc. reported the following on its December 31, 2020, balance sheet: Equipment, P500,000 Accumulated depreciation-equipment, P135,000 In a footnote, Jaen indicates that it uses straight-line depreciation over 10 years and estimates salvage value as 10% of cost. What is the average age of the equipment owned by Jaen? O 7.3 years ОТ years О 2.7 years З years
An entity purchased equipment on January 1, 2020 for P8,000,000. The equipment had a useful life of 5 years and residual value of P600,000. The policy is to depreciate 5-year assets using the 200% double declining method for the first 2 years and then switch to straight line. What amount should be reported as accumulated depreciation on December 31, 2022?
Calculate A,B,C,D and E
Harris Co. takes a full year's depreciation expense in the year of an asset's acquisition and no depreciation expense in the year of disposition. Data relating to one of Harris's depreciable assets at December 31, 2021 are as follows: Acquisition year 2019 Cost $280,000 Residual value 40,000 Accumulated depreciation 192,000 Estimated useful life 5 years Using the same depreciation method as used in 2019, 2020, and 2021, how much depreciation expense should Harris record in 2022 for this asset? (You need to use the info given to determine which depreciation method is used and then calculate depreciation for 2022.)
ABC Company acquired an equipment on January 1, 2020 forP5,000,000. Depreciation is computed using the straight-line method.The estimated useful life of the equipment is five years with no residualvalue. A specific price index applicable to the equipment was 150 onJanuary 1, 2020 and 225 on December 31, 2020. What is the unrealizedholding gain on the equipment to be reported in 2020? A. 1,250,000B. 1,500,000C. 2,000,000D. 2,500,000
Qui Corporation takes a full year's depreciation expense in the year of an asset's acquisition, and no depreciation expense in the year of disposition. Data relating to one of Qui's depreciable assets at December 31, 2018 are as follows; Acquisition year- 2016; Estimated useful life- 5 years; Cost- P110,000; Residual value- P20,000; Accumulated depreciation - P72,000. Using the same depreciation method as used in 2016, 2017, and 2018, how much depreciation expense should Qui Corporation record in 2019 for this asset?
At November 1, 2021, the following existed in the records of Lauren Company:Plant and equipment P8,600,000Accumulated depreciation 3,970,000During the year ended November 30, 2022, plant with a written down value of P370,000 was sold P490,000. The plant had originally cost P800,000. Plant purchased during the year cost P1,800,000. It is the company’s policy to charge a full year’s depreciation in the year of acquisition of an assets and none in the year of sale, using a rate of 10% on the straight-line basis.What net amount should appear in Lauren’s statement of financial position at November 30, 2022 for plant and equipment?
France company disclosed that the depreciation policy of on machinery is as follows: A full year depreciation is taken in the year of acquisition. No depreciation is taken in the year of disposition. The straight line method is used. On June 30, 2022, the entity sold for P 2,300,000 a machine acquired in on April 1, 2019 for P 4,200,000. The machinery has estimated useful life of five years and a residual value of P 600,000. The carrying amount of the machine on June 30, 2022 is _____________ 2. the journal entry on June 30, 2022 would be: