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...

See similar textbooks

Similar questions

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.)
Sheridan's Repair 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. Purchased equipment from the Equipment Center for $7,900 cash plus sales tax of $580, and shipping costs of $490. 2021 July 1 Nov. 3 Incurred ordinary repairs on computer of $280. Dec. 31 Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $450. 2022 Dec. 31 Recorded 2022 depreciation. Paid $2,900 fora major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. 2023 Jan. 1 Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Prepare the necessary…
Eckan 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 year. 2022 Jan 1 Purchased a computer from the Computer Center for $2,500 cash Dec. 31 Recorded 2022 depreciation on the basis of a four year life and estimated salvage value of $500. Instructions T Prepare the necessary entries for Jan 1 and Dec 31. (Show calculations.)
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
Please answer complete and properly
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
General accounting
Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.a. Prepare the journal entry necessary for recording the purchase of the new carpet.b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek Company uses the straight-line method.
A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a 5-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company's year-end is December 31. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. 2. Prepare the general journal entry to record the disposal of the equipment under each of these three independent situations: a. The equipment was sold for $22,000 cash. (Remember to calculate accumulated depreciation. A full year of depreciation for the first 3 years and then the partial year for the fourth year calculated above). b. The equipment was sold for $15,000 cash. (Remember accumulated depreciation) c. The equipment was totally destroyed in a fire and the insurance company settled the claim for $18,000…
If a fixed asset, such as a computer, were purchased on January 1 for $2,223 with an estimated life of 5 years and a salvage or residual value of $186, the journal entry for monthly expense under straight-line depreciation is a. Depreciation Expense 33.95 Accumulated Depreciation 33.95 b. Accumulated Depreciation 33.95 Depreciation Expense 33.95 c. Accumulated Depreciation 407.40 Depreciation Expense 407.40 d. Depreciation Expense 407.40 Accumulated Depreciation 407.40