Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2020, July 1 Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50. Nov. 3 Incurred ordinary repairs on computer of $140. Dec. 31 Recorded 2020 depreciation on the basis of a four year life and estimated salvage value of $500. 2021, Dec. 31 Recorded 2021 depreciation. 2022, Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation 2020, July 1 Equipment Debit 2100 Credit 210 2020, Nov. 3 Repairs and Maintenance Expense 140 14

Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2020, July 1 Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50. Nov. 3 Incurred ordinary repairs on computer of $140. Dec. 31 Recorded 2020 depreciation on the basis of a four year life and estimated salvage value of $500. 2021, Dec. 31 Recorded 2021 depreciation. 2022, Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation 2020, July 1 Equipment Debit 2100 Credit 210 2020, Nov. 3 Repairs and Maintenance Expense 140 14

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...

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Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
Metlock Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2020 July 1 Purchased a computer from the Computer Center for $1,950 cash plus sales tax of $180, and shipping costs of $70. Nov. 3 Incurred ordinary repairs on computer of $160. Dec. 31 Recorded 2020 depreciation on the basis of a four-year life and estimated salvage value of $400. 2021 Dec. 31 Recorded 2021 depreciation. 2022 Jan. 1 Paid $200 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer. 1. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. If no entry is required, select "No…
Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2020, July 1 Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50. Nov. 3 Incurred ordinary repairs on computer of $140. Dec. 31 Recorded 2020 depreciation on the basis of a four year life and estimated salvage value of $500. 2021, Dec. 31 Recorded 2021 depreciation. 2022, Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Chuck Company purchases performs a major inspection on its machinery on 1 January 20X4 for $137,000. The company uses the straight-line method of depreciation. The company performs major inspections every 5 years. The bookkeeper erroneously expenses the entire amount to repairs and maintenance. The error is discovered at the end of 20X5. Required: Prepare the journal entry required in 20X5
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Proper net income computation
Machinery was purchased on January 1 for $65,660. 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 (rounded to the nearest dollar) would be: Oa. $13,400 Ob. $12,900 Oc. $12,400 Od. $14,400 Previous Next 1:04 PM a $eg 12/11/2020
2. Prepare the year-end Journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining- balance method instead of the straight-line method. Required Information [The following information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $56,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $11,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $2,000. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Do not round Intermediate calculations. Round your final answers to nearest whole dollar. No 1 Event 1 Answer is not complete. General Journal Depreciation expense Accumulated depreciation-computer Debit Credit
B. D E G H. J K 3. Create the fixed asset supporting schedule for the following purchases: Two fixed assets are purchased during the year: Computer server on 5/4/2014 for $2,214.55 Office furniture on 11/17/2014 for $1,234.54 MACRS 150% is going to be the depreciation method used and depreciation adjusting entries are made at the end of each month. (check figure: total depreciation expense = 107.63) What will be the depreciation general journal adjusting entry on 12/31/2014?
Trinkle Company, Incorporated made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment 1. List price: $38,100; terms: 2/10 n/30; paid within discount period. 2. Transportation-In: $720. 3. Installation: $510. 4. Cost to repair damage during unloading: $419. 5. Routine maintenance cost after eight months: $280. Basket Purchase of Copler, Computer, and Scanner for $51,100 with Fair Market Values 1. Copler, $27,104. 2. Computer, $10,472. 3. Scanner, $24,024. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $78,700. 2. Demolition of building, $4,920. 3. Lumber sold from old building, $1,920. 4. Grading In preparation for new building, $8,900. 5. Construction of new building, $271,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts. Asset Office equipment Basket purchase: Copier Computer Scanner Total cost to be capitalized Land and building: Cost…
Hidd copier on April 30, purchases a machine for BD 55,000. The machine is expected to last ten years and have a salvage value of BD 5,000. Compute depreciation expense for the first year assuming the company uses the straight-line method.
Data, Inc., purchased and placed in service $5,000 of office furniture on August 24, year 3. This is the only asset purchase during the year. Code § 179 expensing and bonus depreciation were not elected. Using the excerpt of the MACRS half-year convention table below, what is the MACRS depreciation in year 3 for the office furniture? Recovery Period 5-Year 7-Year 10-Year 1 20% 14.29% 10% 2 32% 24.49% 18% 3 19.2% 17.49% 14.4% If required, round your answer to the nearest dollar.