Exchanged a display case put in service on 1 April, 2 years prior (original cost $21000, $0 salvage value) fora new display case, list price $25000; terms FOB, destination. The trade-in allowance was $18000 and thebalance due of $7000 was paid in cash. Freight costs are $65 and insurance in transit was $45. Displaycases are classified as Store and Office Equipment. The estimated useful life of both old and new cases is10 years. Record this transaction in the GJ. Hint: the cost of the new equipment is $25000.

In the transaction involving the exchange of an old display case for a new one, the company records…

Answered: Exchanged a display case put in service…

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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The following data relate to the Machinery account of Wildhorse, Inc. at December 31, 2025. Original cost Year purchased Useful life Salvage value Depreciation method Accum. depr. through 2025* a. Cash A Machinery (Machine A) $54,280 2020 15,340 10 years $3,658 Sum-of-the-years'-digits $36,816 B 15,340 $60,180 2021 Machinery 15,000 hours $3,540 Activity $41,536 C $94,400 2022 15 years $5,900 Straight-line $17,700 D $94,400 *In the year an asset is purchased, Wildhorse, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Wildhorse, Inc. takes a full year's depreciation on the asset. The following transactions occurred during 2026. 2024 10 years $5,900 On May 5, Machine A was sold for $15,340 cash. The company's bookkeeper recorded this retirement in the following manner in the cash receipts journal. Double-declining balance $18,880
ABC Corp uses the double declining balance method to depreciate a machine purchased on Jan 1, 20X1 for P20,000. Estimated scrap value is P2,000 and estimated useful life is 4 years. What is the asset's carrying value at December 31, 20X3?
On January 1, Year 1, Friedman Company purchased a truck that cost $36,000. The truck had an expected useful life of 8 years and an $7,000 salvage value. The book value of the truck at the end of Year 1, assuming that Friedman uses the double- declining-balance method, is: (Do not round intermediate calculations.) Multiple Choice $21,750. $27,000. $20.000 $28,750
Allyn Company purchased equipment costing $55,000 on January 1, Year 1. The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 5 years. Double-declining-depreciation is used, and all depreciation has been recorded as of December 31, Year 2. If the equipment is sold on December 31, Year 2 for $15,000, the journal entry to record the sale is: A.Debit Cash, $15,000; Debit Accumulated Depreciation, $22,000; Debit Loss on Sale, $18,000; Credit Equipment, $55,000. B. Debit Cash, $15,000; Debit Accumulated Depreciation, $13,200; Debit Loss on Sale, $26,800; Credit Equipment, $55,000. C. Debit Cash, $15,000; Debit Accumulated Depreciation, $35,200; Debit Loss on Sale, $4,800; Credit Equipment, $55,000. D. Debit Cash, $15,000; Debit Accumulated Depreciation, $40,000; Credit Equipment, $55,000. E. Debit Cash, $15,000; Debit Loss on Sale, $40,000; Credit Equipment, $55,000.
A company purchased a point-of-sale self-service cash register on January 1 for £5,400. This register has a useful life of 10 years and a salvage value of £400. What would be the depreciation expense for the second year of its useful life, using the double-declining-balance method? A) 1080 B) 864 C) 800 D) 500
m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What…
On January 1, Year 1, Friedman Company purchased a truck that cost $48,000. The truck had an expected useful life of 8 years and an $8,000 salvage value. Friedman uses the double-declining-balance method. What is the book value of the truck at the end of Year 1? Multiple Choice O O O о $38,000 $40,000 $43,000 $36,000
On 1 June 20X9 a machine was sold which cost $10,000 on 31 July 20X5. Sale proceeds were $2,750 and the profit on disposal was $750. The depreciation policy for machinery is straight line with a full year being charged in the year of acquisition and none in the year of sale. What is the depreciation rate?
2) A purchase of equipment for $18 000 also involved freight charges of $500 and installation costs of $2 500. The estimated salvage value and useful life are $2 000 and 4 years, respectively. Under the straight-line method, annual depreciation expense will be: a) $4 750. b) $4 500. c) $4 125. d) $4 625.
New Office Equipment List price: $60,000; terms: 2/10, n/30; paid within the discount period. Transportation-in: $1,500. Installation: $2,500. Cost to repair damage during unloading: $650. Routine maintenance cost after eight months: $350. determine the amount of cost to be capitalized in the asset account office equipment: ?
I need formulas for each of the yellow highlighted For example C7 is January 1 book value, so on and so on... Please and thank you
Machinery was purchased on January 1 for $89,670.00. The machinery has an estimated life of seven years and an estimated salvage value of $9,000. Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar): a.$17,300 b.$19,300 c.$18,300 d.$17,800

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