For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation for conveyer.equipment acquired at the beginning of 2021 for $2,560,000. Its useful life was estimated to be six years with a $160,000residual value. At the beginning of 2024, Kumas decides to change to the straight-line method. The effect of this change ondepreciation for each year is as follows:Year202120222023Straight-Line$ 400400400$ 1,200View transaction list($ in thousands)Declining Balance$ 853569379$ 1,801Required:2. Prepare any 2024 journal entry related to the change.Note: Enter you answers rounded to the nearest dollar. If no entry is required for a transaction/event, select "No journalentry required" in the first account field.Journal entry worksheet1Difference.$ 453169(21)$ 601Record the adjusting entry for depreciation in 2024.Note: Enter debits before credits.< Prev 3 of 7www***Next >

A journal entry is a basic accounting record that is used to chronologically track financial…

Answered: For financial reporting, Kumas Poultry…

For financial reporting, Kumas Poultry Farms has equipment acquired at the beginning of 2021 for residual value. At the beginning of 2024, Kumas depreciation for each year is as follows:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Pharm Co. self-constructed an asset for its own use. Construction started on Dec. 31, 2019. Costs incurred during the year were as follows: Jan 1- P400,000; Apr. 1 – P500,000; Aug.1 – P480,000; Dec. 1 – P180,000. The company had a two-year. 18% loan of P500,000, specifically obtained to finance the asset construction. Determine the average accumulated expenditures for the self-constructed assets and capitalized interest added to the cost of the self-constructed asset.
Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $10,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Whispering Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) (d) (e) (f) (a) Sold for $59,000 on January 1, 2022. Sold for $59,000 on April 1, 2022. SR. Account Titles and Explanation (b) Sold for $21,000 on January 1, 2022. Sold for $21,000 on September 1, 2022. Repeat (a), assuming Whispering uses double-declining…
Sadaf Oman Company purchased a land for RO 250,000 in 2010. In October 2020, the company Mold this land for RO 1000,000. In addition, the company purchased a bulding for RO SO000 in July 2019. The land and building were reported on the December 31, 2019 statement of financial position at
At the beginning of the year 2019, Trunk Company has an investment property acquired at a cost of P1,700,000 that is to be accounted under the cost model. Depreciation of 10% is recognized annually and periodic continuing repair costs of P3,500 per year as well as property tax of P2,700 are incurred by the company on an annual basis. What should be the carrying value of the investment at the end of the year 2019? On April 1, 2019, Red Company purchased as a trading security a P1,000,000 face value 8% bond for P920,000 plus brokerage of P12,000 and accrued interest. The bonds mature on January 1, 2023 and pay interest annually on January 1. On December 31, 2019, the bonds had a market value of P965,000. For the year ending December 31, 2019 income statement, what amount should Red report as Unrealized gain or loss from trading securities? (Do not include any parenthesis, just amount without period or comma) Dahlia Company purchased a P2,000,000 12% face value bonds, 10…
17. Gulf Corp. purchased machinery for $250,000 on May 1, 2019. It is estimated that it will have a useful life of 10 years, residual value of $13,400, production of 250,000 units, and working hours of 22,000. During 2020, Gulf Corp. uses the machinery for 2,600 hours, and the machinery produces 25,000 units. Instructions: From the information given, compute the depreciation charge for 2020 Under each of the following methods. (Round to the nearest dollar.) (a). Straight-line method. years' – digits method. (b). Unit Output declining-balance method. (c). Working Hours (d). Sum-of-the- - (e). Double-
Numble leathers and tanners uses SLM for property, plant and equipment which consisted of the following at the end of each year: 2019 2020 Land 250,000 250,000 Building 1,950,000 1,950,000 Machinery & equipment 6,500,000 6,950,000 Accumulated depreciation 3,700,000 4,000,000 The depreciation expense for 2019 and 2020 was P500,000 and P550,000, respectively. What amount was debited to accumulated depreciation during 2020 because of property, plant and equipment retirement?
On April 1, 2024, Titan Corporation purchases office equipment for $50,000. For tax reporting, the company uses MACRS and classifies the equipment as 5-year personal property. In 2024, this type of equipment is eligible for 60% first-year bonus depreciation. For financial reporting, the company uses straight-line depreciation. Assume the equipment has no residual value.Required: Calculate annual depreciation for the five-year life of the equipment according to MACRS. The company uses the half-year convention for tax reporting purposes.Calculate annual depreciation for the five-year life of the equipment according to straight-line depreciation. The company uses partial-year depreciation based on the number of months the asset is in service for financial reporting purposes. In which year(s) is tax depreciation greater than financial reporting depreciation?
ASAP please, direct thumps up :)
For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,832,000. Its useful life was estimated to be six years with a $228,000 residual value. At the beginning of 2024, Kumas decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: Year ($ in thousands) Straight-Line Declining Balance Difference 2021 $ 434 $ 944 $ 510 2022 434 629 195 2023 434 420 (14) $ 1,302 $ 1,993 $ 691 Required: 2. Prepare any 2024 journal entry related to the change. Note: Enter you answers rounded to the nearest dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
On January 1, 2023, Blossom Ltd. acquires a building at a cost of $200,000. The building is expected to have a 20-year life and no residual value. The asset is accounted for under the revaluation model, using the asset adjustment method. Revaluations are carried out every three years. On December 31, 2025, the fair value of the building is appraised at $175,000, and on December 31, 2028, its fair value is $120,000. Blossom applies IFRS. Prepare the journal entries required on December 31, 2025, and the journal entry required on December 31, 2028, to revalue the building, if Blossom uses the proportionate method. (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. List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.) Date ec. 31, 2025 c. 31, 2028 V Account…
In the 30 June 2020 annual report of Smith Ltd, the building was reported as follows: Building (at cost) Accumulated depreciation O The building is depreciated on a straight-line basis over a 10-year period. The company used revaluation model for the building. The company finds out that the building has a fair value of $140,000 at 30 June 2020. On 30 June 2021, the fair value of building is assessed to be $92,500. Asset Revaluation Surplus (OCI) Loss on Revaluation (P/L) Building Which journal entries are correct to revalue the asset in accordance with AASB 116 Property, Plant and Equipment at 30 June 2021? Building Gain on Revaluation (P/L) $ 150 000 Loss on Revaluation (P/L) Building (30 000) Asset Revaluation Surplus (OCI) Loss on Revaluation (P/L) Building 120 000 DR 20,000 27,500 DR 7,500 DR 30,000 DR 20,000 10,000 CR 47,500 CR 7,500 CR 30,000 CR 30,000
The carrying value of building PDU on December 31, 2020 is $800,000 and had remaining useful life of 25 years. It is the company's policy to depreciate all its buildings using the straight-line method. On January 2, 2021, Emma Company committed to a plan to sell building PDU and classified this asset as held for sale. Building PDU was priced at $850,000, which is equal to its fair market value. During 2021, the market conditions that existed at the date the building was classified initially as held for sale deteriorated because of the prevailing worldwide pandemic and as a result, the asset is not sold at the end of 2021. On the same year, the company actively solicited but did not receive any reasonable offers to purchase the building and, in response, reduced the price to $840,000. The building continues to be actively marketed at a price that is reasonable given the change in market conditions. In 2022, the market conditions deteriorate further, and the building is yet to be sold…