On 31 December, a finishing machine was sold.Accumulated depreciation to 30 June was $10,000. The depreciation for 6 months ended 31 December was $3,000.Its capital cost was $25,000 and accumulated depreciation was $13,000 at date of sale.The machine was sold for cash to Jake Strong for $14,300 (including GST).Balance date is 30 June. a. Record General Journal entries to account for the depreciation 6 months ended 31 December and the sale of the finishing machine and post to the relevant ledger accounts. General Journal – O'Reilly Pty Ltd-Date30/11/XX DisposalMachineryDetailsTransfer asset cost to Disposal Account30/11/XX Accumulated depreciation (Machinery)DisposalTransfer asset accumulated depreciation to Disposal Account30/11/XX Account receivable (Cash)DisposalGST collectedSale of asset to Jake Strong30/11/XX DisposalProfit on disposalProfit on disposal of asset30/6/XX Profit on disposalProfit and lossTransfer Profit on disposal of asset to Profit and Loss accountDebitCredit

General Journal - O'Reilly Pty LtdAssumption: GST rate is 10%. GST Collected = Sale Amount / (1 +…

General Journal – O'Reilly Pty Ltd - Date 30/11/XX Disposal Machinery Details Transfer asset cost to Disposal Account 30/11/XX Accumulated depreciation (Machinery) Disposal Transfer asset accumulated depreciation to Disposal Account 30/11/XX Account receivable (Cash) Disposal GST collected Sale of asset to Jake Strong 30/11/XX Disposal Profit on disposal Profit on disposal of asset 30/6/XX Profit on disposal Profit and loss Transfer Profit on disposal of asset to Profit and Loss account Debit Credit

General Journal – O'Reilly Pty Ltd - Date 30/11/XX Disposal Machinery Details Transfer asset cost to Disposal Account 30/11/XX Accumulated depreciation (Machinery) Disposal Transfer asset accumulated depreciation to Disposal Account 30/11/XX Account receivable (Cash) Disposal GST collected Sale of asset to Jake Strong 30/11/XX Disposal Profit on disposal Profit on disposal of asset 30/6/XX Profit on disposal Profit and loss Transfer Profit on disposal of asset to Profit and Loss account Debit Credit

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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Podey Company has a machine that originally cost $20,000, has accumulated depreciation of $14,000 at the beginning of the current year, and is being depreciated at $2,000 per year with the straight-line method. If the company sells the machine for $2,400 on September 30, it first records a depreciation expense of $500. $1,500. $3,600. $6,000.
On 31 December, a finishing machine was sold. Accumulated depreciation to 30 June was $10,000. The depreciation for 6 months ended 31 December was $3,000. Its capital cost was $25,000 and accumulated depreciation was $13,000 at date of sale. The machine was sold for cash to Jake Strong for $14,300 (including GST). Balance date is 30 June. a. Record General Journal entries to account for the depreciation 6 months ended 31 December and the sale of the finishing machine and post to the relevant ledger accounts. General Journal – O’Reilly Pty Ltd Date Details Debit Credit 30/11/XX Disposal Machinery Transfer asset cost to Disposal Account 30/11/XX Accumulated depreciation (Machinery) Disposal Transfer asset accumulated depreciation to Disposal Account 30/11/XX Account receivable (Cash) Disposal GST collected Sale…
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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
Morris Incorporated recorded the following transactions over the life of a piece of equipment purchased in Year 1: January 1, Year 1 Purchased equipment for $14,600 cash. The equipment was estimated to have a five-year life and $6,630 salvage value and was to be depreciated using the straight-line method. Recorded depreciation expense for Year 1. December 31, Year 1 September 30, Year 2 Undertook routine repairs costing $786. December 31, Year 2 Recorded depreciation expense for Year 2. January 1, Year 3 Made an adjustment costing $2,940 to the equipment. It improved the quality of the output but did not affect the life and salvage value estimates. December 31, Year 3 Recorded depreciation expense for Year 3. June 1, Year 4 Incurred $331 cost to oil and clean the equipment. December 31, Year 4 Recorded depreciation expense for Year 4. January 1, Year 5 December 31, Year 5 October 1, Year 6 Received and accepted an offer of $15,100 for the equipment. Required a. Use a horizontal…
Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending 12/31/X7. Required: In the general journal below, complete the year-end entry to record depreciation. Debit Credit Dec 31 ? 40,000 ? 40,000
Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 January 1 Paid $20,515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account. December 31 Recorded annual straight-line depreciation on the truck. Year 2 December 31 The truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,400. Recorded annual straight-line depreciation on the truck. Year 3 December 31 Recorded annual straight-line depreciation on the truck. December 31 Sold the truck for $5,300 cash. Required: 1-a. Calculate depreciation for Year 2. 1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. 1-c. Prepare journal entries to record these transactions and events.
A building is acquired on January 1 at a cost of $1,030,000 with an estimated useful life of eight years and salvage value of $92,700. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.) Annual Period First Year Second Year Third Year Depreciation for the Period Depreciation Rate (%) Beginning of Period Book Value Depreciation Expense End of Period Accumulated Depreciation Book Value
On 1 June 20X9 a machine was sold which cost $20,000 on 31 July 20X5. Sale proceeds were $5,500 and the profit on disposal was $1,500. The depreciation policy for machinery is straight line with a full year being charged in the year of acquisition and none in the year of sale.What is the depreciation rate?
Allyn Company purchased equipment costing $55,000 on January 1, Year 1. The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 5 years. Double-declining-depreciation is used, and all depreciation has been recorded as of December 31, Year 2. If the equipment is sold on December 31, Year 2 for $15,000, the journal entry to record the sale is: A.Debit Cash, $15,000; Debit Accumulated Depreciation, $22,000; Debit Loss on Sale, $18,000; Credit Equipment, $55,000. B. Debit Cash, $15,000; Debit Accumulated Depreciation, $13,200; Debit Loss on Sale, $26,800; Credit Equipment, $55,000. C. Debit Cash, $15,000; Debit Accumulated Depreciation, $35,200; Debit Loss on Sale, $4,800; Credit Equipment, $55,000. D. Debit Cash, $15,000; Debit Accumulated Depreciation, $40,000; Credit Equipment, $55,000. E. Debit Cash, $15,000; Debit Loss on Sale, $40,000; Credit Equipment, $55,000.
On January 1 of the current year, a company acquired and placed in service a machine at a cost of $700,000. It has been estimated that the machine has a service life of 5 years and a salvage value of $60,000. Using the double-declining-balance method of depreciation, complete the schedule below showing depreciation amounts for all 5 years (round answers to the nearest dollar). The company's year-end is December 31. Year Depreciation for the Period Beginning of Depreciation Depreciation Accumulated End of Period Book Rate Expense Depreciation Period Book Value Value 1 2 3 4 5
Account Title Cash Accounts Receivable Office Supplies Prepaid Insurance Truck Unadjusted Trial Balance January 31, 2025 Accumulated Depreciation-Truck Accounts Payable Unearned Revenue Milton, Capital Milton, Withdrawals Service Revenue Salaries Expense Fuel Expense Rent Expense Total Balance Debit $ 34,800 4,860 750 1,200 15,000 2,500 Credit 150 100 1,700 54,100 7,810 2,900 150 1,700 63,860 $ 63,860