equired:
Q: On January 1, 2017, Extensive Manufacturing purchased a machine for $780,000 that it expected to…
A: Asset disposal: It involves removing assets from accounting records(balance sheet).An asset may…
Q: Archer Company purchased equipment in January of 2011 for P90,000. The equipment was being…
A: Depreciation Expense (Straight Line Method) = Cost - Salvage ValueUseful Life of an Asset
Q: The Peridot Company purchased machinery on January 2, 2019, for $960,000. A five-year life was…
A: SOLUTION- DEPRECIATION- IT INDICATES REDUCTION IN VALUE DEPENDS ON LIFE OF ASSETS . LIFE OF ASSETS…
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A: Depreciation- Depreciation is thus the diminish in the price of assets and the process used to…
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A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: The Fisher Company purchased a machine on October 1, 2018, for $18,000. At the time of acquisition,…
A: Depreciable cost=Cost-Salvage value=$18,000-$5,000=$13,000
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A: Impairment Loss : When the Carrying amount (CA) of an asset is more than the Recoverable Amount (RA)…
Q: Gina Corporation purchases new office equipment for $2,500,000 on January 1, 2020. Gina estimates…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…
A: Depreciation is considered as an expense charge on the value of the Asset. The most common method…
Q: n January 1, 2021, Gleason Company purchased new machinery for $ 333,000. The new machine was…
A: The book value of an asset is calculated as cost less accumulated depreciation. The accumulated…
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A: Impairment losses are important because they ensure that the financial statements accurately reflect…
Q: The gain on reversal of impairment loss on December 31, 2016 is
A: Calculate impairment loss as on April 1, 2016 as shown below: Impairment loss = Cost - Accumulated…
Q: The Peridot Company purchased machinery on January 2, 2019, for $900,000. A five-year life was…
A: Depreciation under straight line method is enumerated as below: Depreciation= (Cost of asset -…
Q: Z company acquire equipment in 2012 for $317 million. At the time of recogintion of the equipment as…
A: Introduction: Under the straight line method of depreciation, depreciation is charged on the asset…
Q: Coronado Company purchased
A: Business entities are required to compute the depreciation expense so that in the balance the assets…
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A: Straight-line depreciation is a method of allocating the cost of an asset evenly over its estimated…
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A: This is the case of 150% declining-balance method in which the depreciation rate is to be computed…
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A: Depreciation expense: Depreciation expense is the reduction in the particular asset due to its use…
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A: The objective of the question is to prepare the journal entries for the sale of equipment by Howarth…
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A: Solution.. Cost = P46,000 Estimated salvage value = P2,000 Life = 10 years
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A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: On January 2, 2017, RM Company purchased equipment costing P1,500,000. The estimated useful life of…
A: Depreciation per annum of old machinery = (P1500000-P50000)/8. = P181250 per annum Depreciation for…
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A: Depreciation means gradual and permanent diminishing of the value of assets due to water, tear and…
Q: Piano Maker Ltd purchased a photocopier for $80,000 on 1 July 2022.The photocopier is depreciated…
A: 1. 17,000 2. 6,111.11 3. 13,222.22 Explanation: 1. Carrying amount June 30, 2023 72,000 Fv…
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A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
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A: Depreciation = Total Cost of Equipment - Salvage ValueUseful life
Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Martinez Corporation uses special strapping equipment in its packaging business. The equipment was…
A: january 2019 = 8800000dec 2019 ( dep ) = (1100000)book value on Gregorian calendar month 2020 =…
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A: A lease is defined as a contractual agreement incorporated between two business entities where one…
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A: The Depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…
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A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors A change in method of…
Q: On August 1, 2015, Toy Inc. purchased a new piece of equipment that cost $25000. The estimated…
A: Asset disposal : This involves removing assets from the accounting records.The disposal is…
Q: On January 1, 2018, Wheeler, Inc. purchased some equipment for $3,900. The equipment had an…
A: Depreciation expense is part of cost of the asset charged as expense in the income statement.…
Q: Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $90,000. The…
A: Depreciation Expense - Depreciation Expense incurred on the fixed assets of the company. It is…
Q: On January 1, 2019, Woodstock, Inc. purchased a machine costing $42.400. Woodstock also paid $2.200…
A: Depreciable cost=Cost+installation-Residual value=$42,400+$2,200-$6,200=$44,600-$6,200=$38,400
Q: pany committed to a plan to sell building PDU and classified this asset as held for sale. Building…
A: A Fixed Asset is usually reported at the cost or fair value unless and until it is meant to be sold.
Q: Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $175,000. The…
A: Straight Line Method Annual Depreciation = (Cost - Salvage value)/Useful lifeCost of assets-Salvage…
Q: Waterway Company purchased Machine #201 on May 1, 2020. The following information relating to…
A: Calculating the double-decline balance approach is not too difficult. It entails deducting an annual…
Q: On March 10, 2022, Bonita Company sells equipment that it purchased for $209,280 on August 20, 2015.…
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…
Q: On January 1, 2021, Slim Inc. purchased machinery for $350,000. The machinery had an estimated…
A: The objective of the question is to identify the type of accounting change that has occurred when…
On January 2, 2017, BTS Company purchased equipment costing P1,500,000. The estimated useful life of the equipment is 8 years with est. residual value of P50,000. The company is using straight-line method of
On July 1, 2021, the equipment held for sale was sold for P750,000.
Required:
- Entries on July 1, 2020 and December 31, 2020
- Entry to record the sale on July 1, 2021
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- ABC Corporation bought an equipment with a total cost of P4,000,000 on Jan. 1, 2016. It was depreciated using the straight-line method over 20 years with a salvage value of P400,000. On Jan. 1, 2020, there is a foreseen decrease in the useful life of the equipment to only 8 remaining years. Hence, the asset is being tested for impairment. The current fair value less cost to sell is P600,000 while the salvage value at the end of the useful life is P400,000. Annual net operating cash flows is foreseen to be at P200,000 per year. The effective interest rate to be used for impairment testing is 6%. How much is the impairment loss?Warhol Enterprises purchased a spray painter at the beginning of 2018 at a cost of $150,000. Costs for training personnel on usage of this painter were $200. Warhol estimated that the spray painter would have a residual value of $30,000. The company decided to use declining-balance method of depreciation at a rate of 20%. Two years later, at the end of 2020, Warhol sold the spray painter for $120,000.a. Calculate the book value of the spray painter at the end of 2018 and the end of 2019, prior to its sale.b. Calculate the gain or loss on the sale of the spray painter.c. Calculate the income statement effect, assuming that Warhol decided to give the spray painter to a charitable foundation.Oklahoma Company purchased a machine on January 1, 2020. The machine had a cost of $520,000 with a $20,000 residual value. The estimated useful life of the machine was eight years. On January 1, 2022, due to technological innovations, the estimated useful life was reduced by two years from the original life and the residual value was reduced by 50%. The company uses straight-line depreciation. Required: Prepare the journal entry to record the annual depreciation on December 31, 2022. Show your calculations before you post the journal entry.
- Howarth Manufacturing Company purchased equipment on June 30, 2020, at a cost of $170,000. The residual value of the equipment was estimated to be $20,000 at the end of a five-year life. The equipment was sold on March 31, 2024, for $54,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale. + Complete this question by entering your answers in the tabs below. Required 1 No Prepare the journal entry to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. General Journal 1 Required 2 No Event 1 1 Required 1 Required 2 Answer is not complete. 10 Event 1 Cash Accumulated depreciation-equipment Loss…Cyberdyne Systems sold a piece of equipment August 1, 2020 for $22,000. The original cost of the equipment was $60,000 and it was purchased on January 1, 2017. The residual value was estimated to be $3,000 and it had a 5 year useful life. Cyberdyne uses the straight-line method. Cyberdyne has a December 31 year end. Instructions Record the sale of the asset in 2020. Note: You do not need to make the journal entries for depreciation expense for 2017, 2018, 2019 and 2020. Assume that these journal entries were already made correctly.Healthlabs Ltd. purchased lab equipment for $16,500 on January 1, 2020. At that time, management determined that the equipment would have a useful life of three years with no residual value and that the straight-line depreciation method would be used. On January 1, 2021, management revised its initial estimate and determined that the company would be able to use the lab equipment for a total of five years. Determine the depreciation expense for 2021. Depreciation expense for 2021 2$ eTextbook and Media Save for Later
- On March 10, 2027, Skysong Company sells equipment that it purchased for $203,520 on August 20, 2020. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,808 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. (a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026, inclusive, under each of the six following assumptions with respect to partial periods. (Round depreciation per day to 2 decimal places, e.g. 15.64 and final answers to O decimal places, e.g. 45,892.) 1. Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for base and record depreciation through March 9, 2027.) 2. Depreciation is computed for the full year on the January 1 balance in the asset account. 3. 4. Depreciation for one-half year is charged on plant assets acquired…Blossom Company purchased a warehouse on January 1, 2019, for $480,000. At the time of purchase, Blossom anticipated that the warehouse would be used to facilitate the expansion of its product lines. The warehouse is being depreciated over 20 years and is expected to have a residual value of $60,000. At the beginning of 2024, the company decided that the warehouse would no longer be used and should be sold for its carrying amount. At the end of 2024, the warehouse still had not been sold, and its net realizable value was estimated to be only $312,000. Prepare all the journal entries that Blossom should make during 2024 related to the warehouse. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired,select Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the Amounts. List debit entry before credit entry.)On January 1, 2015, Jersey Corporation purchased for $800,000, equipment having a useful life of ten years and an estimated salvage value of $50,000. Jersey has recorded monthly depreciation of the equipment on the straight-line method. On May 1, 2020, the equipment was sold for $170,000. As a result of this sale, Jersey should recognize a gain/(loss) of?
- Bramble Corp. purchased Machine no. 201 on May 1, 2020. The following information relating to Machine no. 201 was gathered at the end of May: Price Credit terms Freight-in costs Preparation and installation costs Labour costs during regular production operations $72,000 2/10, n/30 $700 $3,200 $9,000 It was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Bramble intends to use the machine for only eight years and expects to then be able to sell it for $1,500. The invoice for Machine no. 201 was paid on May 5, 2020. Bramble has a December 31 year end. Depreciation expense should be calculated to the nearest half month. Bramble follows IFRS for financial statement purposes. Calculate the depreciation expense for the years indicated using the following methods. (Do not round intermediate calculations and round final answers to O decimal places, e.g. 5,275.) 1. Straight-line method for the fiscal years ended December 31, 2020 and…On July 1, 2020, ABC Company sells equipment for $105,000. The equipment originally cost $300,000, had an estimated 5-year life and an expected residual value of $50,000. The accumulated depreciation account had a balance of $200,000 on January 1, 2020, using the straight-line method. The gain or loss on disposal is _________________. (Indicate whether gain or loss)Tatsuo Corporation purchased farm equipment on January 1, 2019, for $287,000. In 2019 and 2020, Tatsuo depreciated the asset on a straight-line basis with an estimated useful life of five years and a $92,000 residual value. In 2021, due to changes in technology, Tatsuo revised the residual value to $32,000 but still plans to use the equipment for the full five years. What depreciation would Tatsuo record for the year 2021 on this equipment?
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