Exercise 8-9A Events related to the acquisition, use, and disposal of a tangible plant asset: straight-line depreciation CJ's Pizza purchased a delivery van on January 1, 2011, for $25,000. In addition, CJ's paid sales tax and title fees of $1,000 for the van. The van is expected to have a four-year life and a salvage value of $6,000. Required a. Using the straight-line method, compute the depreciation expense for 2011 and 2012. b. Prepare the general journal entry to record the 2011 depreciation. c. Assume the van was sold on January 1, 2014, for $12,000. Prepare the journal entry for the sale of the van in 2014. LO 3, 4

Exercise 8-9A Events related to the acquisition, use, and disposal of a tangible plant asset: straight-line depreciation CJ's Pizza purchased a delivery van on January 1, 2011, for $25,000. In addition, CJ's paid sales tax and title fees of $1,000 for the van. The van is expected to have a four-year life and a salvage value of $6,000. Required a. Using the straight-line method, compute the depreciation expense for 2011 and 2012. b. Prepare the general journal entry to record the 2011 depreciation. c. Assume the van was sold on January 1, 2014, for $12,000. Prepare the journal entry for the sale of the van in 2014. LO 3, 4

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Description: Exercise 8-9A Events related to the acquisition, use, and disposal of a tangibleplant asset: straight-line depreciationCJ's Pizza purchased a delivery van on January 1, 2011, for $25,000. In addition, CJ's paid salestax and title fees of $1,000 for

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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Please don't provide solution in an image format thanku Computing and Assessing Plant Asset Impairment Zeibart Company purchases equipment for $235,000 on July 1, 2012, with an estimated useful life of 10 years and expected salvage value of $28,000. Straight-line depreciation is used. On July 1, 2016, economic factors cause the market value of the equipment to decline to $97,500. On this date, Zeibart examines the equipment for impairment and estimates $127,500 in future cash inflows related to use of this equipment.a. Is the equipment impaired at July 1, 2016?AnswerYesNo b. Compute the impairment loss (if any) as of 7/1/2016 as well as the depreciation expense for the 12 months from July 1, 2016 to July 1, 2017. Round calculations to the nearest dollar.Using the financial statement effects template, show how those two entries affect Zeibart Company’s balance sheet and income statement. Balance Sheet Transaction Cash Asset + Noncash Assets - Contra Assets = Liabilities…
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chapter 9 question 5 fill in all the blanks that need to be filled
Please do not give solution in image format thanku
Please do not give solution in image format thanku
Please do not give solution in image format thanku
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