Exerclse 8-14 Ordinary repalrs, extraordlnary repalrs, and betterments LO C3 Oki Company pays $250,550 for equipment expected to last four years and have a $30.000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $18.350 cash for a new component that increased the equipment's productivity. 2. Paid $4,588 cash for minor repairs necessary to keep the equipment working well. 3. Paid $11,300 cash for significant repairs to increase the useful life of the equipment from four to seven years.

Exerclse 8-14 Ordinary repalrs, extraordlnary repalrs, and betterments LO C3 Oki Company pays $250,550 for equipment expected to last four years and have a $30.000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $18.350 cash for a new component that increased the equipment's productivity. 2. Paid $4,588 cash for minor repairs necessary to keep the equipment working well. 3. Paid $11,300 cash for significant repairs to increase the useful life of the equipment from four to seven years.

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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Problem 11-02 The cost of equipment purchased by Skysong, Inc., on June 1, 2020, is $107,100. It is estimated that the machine will have a $6,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 50,400, and its total production is estimated at 630,000 units. During 2020, the machine was operated 6,420o hours and produced 58,850 units. During 2021, the machine was operated 5,885 hours and produced 51,300 units. Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.) 2020 2021 (a) Straight-line (b) Units-of-output (c) Working hours $1 (d) Sum-of-the-years'-digits (e) Double-declining-balance (twice the straight-line rate) Click if you would like to Show Work for this question: Open Show Work
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Exercise 10-13 (Algo) Revising depreciation LO C2 Apex Fitness Club uses straight-line depreciation for a machine costing $21,050, with an estimated four-year life and a $2,250 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,800 salvage value. 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the machine's book value at the end of its second year. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision $ 0
Direct material used $20,000 Depreciation- plant building $8,000 Indirect material (supplies) $2,500 Depreciation - sales building $6,000 Direct manufactured labor $7,000 Depreciation - plant tools $2.300 Indirect manufactured labor (annually salaries) $3,500 Production 40,000 units The total of "ixed costs" is: Question 3/20o 1.22300, 2 17300. 3.16300. 4.10,300. 5. None of the above
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MODULE 5 8-5 USE OF ASSET Please read the following question and provide the correct answer and explain how you came to that answer. Thank you! Nerdz, Inc. has just acquired a new truck for use in the business. Cost of the truck was $40,000. Nerdz has determined that the life of the truck will be three years and no salvage. Depreciation is straight-line a) Journalize the entry to record the depreciation for the first year of asset's life b) Journalize the entry to record the depreciation for the first month of teh asset's life.
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E 12-9 Research and Development Cost In 2019, Lalli Corporation incurred R&D costs as follow: Materials used from inventory 100,000 Personnel in R&D lab 100,000 Allocation of the cost of utilities and maintenance costs of the R&D facility 50,000 These costs relate to a product that will be marked in 2020. The company estimates tht these costs will be recouped by December 31, 2020. Required: 1. What is the amount of R&D cost expensed in 2019? 2. Would your answer change if the materials were purchased and not used or if the utilities and maintence costs were related to the corporate offices?
Exercise 10-14 Ordinary repairs, extraordinary repairs, and betterments LO C3 Oki Company pays $306,500 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment. Paid $26,000 cash for a new component that increased the equipment’s productivity. Paid $6,500 cash for minor repairs necessary to keep the equipment working well. Paid $18,950 cash for significant repairs to increase the useful life of the equipment from four to seven years.