If a fixed asset, such as a computer, were purchased on January 1st for $1,533 with an estimated life of 7 years and a salvage or residual value of $243, the journal entry for monthly expense under straight-line depreciation is:a. - Depreciation Expense: 184.29- Accumulated Depreciation: 184.29b. - Accumulated Depreciation: 15.36- Depreciation Expense: 15.36c. - Accumulated Depreciation: 184.29- Depreciation Expense: 184.29d. - Depreciation Expense: 15.36- Accumulated Depreciation: 15.36To solve for the correct journal entry, use the straight-line depreciation method formula:\[ \text{Annual Depreciation} = \frac{\text{Cost} - \text{Salvage Value}}{\text{Useful Life}} \]\[ \text{Monthly Depreciation} = \frac{\text{Annual Depreciation}}{12} \]This information is critical for accounting students learning about asset depreciation and financial statement preparation.

Name: If a fixed asset, such as a computer, were purchased on January 1st f
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: If a fixed asset, such as a computer, were purchased on January 1st for $1,533 with an estimated life of 7 years and a salvage or residual value of $243, the journal entry for monthly expense under straight-line depreciation is:a. - Depreciation Exp

Annual depreciation-Straight line method = (Cost - Salvage value)/Estimated useful life. Accumulated…

Business

Accounting

If a fixed asset, such as a computer, were purchased on January 1st for $1,533 with an estimated life of 7 years and a salvage or residual value of $243, the journal entry for monthly expense under straight-line depreciation is Oa. Depreciation Expense 184.29 Accumulated Depreciation Ob. Accumulated Depreciation 184.29 15.36 Depreciation Expense 15.36 Oc. Accumulated Depreciation 184.29 Depreciation Expense 184.29 Od. Depreciation Expense 15.36 Accumulated Depreciation 15.36

If a fixed asset, such as a computer, were purchased on January 1st for $1,533 with an estimated life of 7 years and a salvage or residual value of $243, the journal entry for monthly expense under straight-line depreciation is Oa. Depreciation Expense 184.29 Accumulated Depreciation Ob. Accumulated Depreciation 184.29 15.36 Depreciation Expense 15.36 Oc. Accumulated Depreciation 184.29 Depreciation Expense 184.29 Od. Depreciation Expense 15.36 Accumulated Depreciation 15.36

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

A truck acquired at a cost of $202,800 has an estimated residual value of $18,000, has an estimated useful life of 440,000 miles, and was driven 113,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to 2 decimal places. a. The depreciable cost $ b. The depreciation rate $ per mile c. The units-of-activity depreciation for the year $
If a fixed asset, such as a computer, was purchased on January 1 for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for the monthly expense under straight-line depreciation is a. Depreciation Expense 100 Accumulated Depreciation 1,200 Accumulated Depreciation 1,200 100 b. Depreciation Expense 1,200 c. Accumulated Depreciation Depreciation Expense d. Accumulated Depreciation Depreciation Expense 1,200 100 100 O D O A
Entries for Sale of Fixed Asset Equipment acquired on January 5 at a cost of $161,250, has an estimated useful life of 20 years, has an estimated residual value of $8,050, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? b. Assuming that the equipment was sold on April 1 of the fifth year for 123,390. 1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required. 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations.
Using the following information: Cost of asset, $290,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $40,000 A. Make the December 31 adjusting journal entry for depreciation. If an amount box does not require an entry, leave it blank. December 31 B. Determine the net book value (NBV) of the asset on December 31.
Partial-year depreciation Equipment acquired at a cost of $86,000 has an estimated residual value of $5,000 and an estimated useful life of 10 years. It was placed in service on April 1 of the current fiscal year, which ends on December 31. When required, round your answers to two decimal places. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Year 1 S Year 2 Depreciation Year 2 b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Year 1 $ 6,075 Depreciation S X 12,900 ✓ X
Partial-Year Depreciation Equipment acquired at a cost of $65,000 has an estimated residual value of $4,000 and an estimated useful life of 10 years. It was placed in service on April 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 b. Determine the depreciation for the current fiscal year and the following fiscal year by the double-declining-balance method. Depreciation Year 1 $fill in the blank 3 Year 2 $fill in the blank 4
An asset valued at 5,750 has a scrap value of 310 with an estimated life of 7 years. Make out a depreciation schedule. (Sum of years digits Method) What is the annual depreciation on the 5th year О А. 388.57 О в. 777.14 О с. 582.86 O D. 971.43
A table was purchased for RO 1200 and the depreciation is computed at the rate of 15%. What is the book value at the end of second year by using Written down value method? a. RO 1020 b. RO 867 c. RO 180 d. RO 153
Partial-year depreciation Equipment acquired at a cost of $110,000 has an estimated residual value of $7,000 and an estimated useful life of 10 years. It was placed into service on May 1 of t current fiscal year, which ends on December 31. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Round your answers to the nearest dollar. Year 1 Year 2 Year 1 Depreciation Year 2 $ b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Do not round the double-declin balance rate. Round your answers to the nearest dollar. Depreciation $ Incorrect $
If a fixed asset, such as a computer, were purchased on January 1 for $2,267 with an estimated life of 7 years and a salvage or residual value of $135, the journal entry for monthly expense under straight-line depreciation is Oa. Accumulated Depreciation 304.57 Depreciation Expense 304.57 Ob. Depreciation Expense 25.38 Accumulated Depreciation 25.38 Oc. Accumulated Depreciation 25.38 Depreciation Expense 25.38 Od. Depreciation Expense 304.57 Accumulated Depreciation 304.57
A piece of heavy equipment acquired on January 1 at a cost of $180,000 has an estimated useful life of 25 years. Assuming that it will have no residual value. a. Determine the depreciation for each of the first two years ending December 31 by the straight-line method. Round your answer to the nearest cent if rounding is required. Depreciation First year $fill in the blank 1 Second year $fill in the blank 2 b. Determine the depreciation for each of the first two years ending December 31 by the double-declining-balance method. Round your answer to the nearest cent if rounding is required. Depreciation First year $fill in the blank 3 Second year $fill in the blank 4
If a fixed asset, such as a computer, were purchased on January 1st for $2,101.00 with an estimated life of 4 years and a salvage or residual value of $107.00, what is the journal entry for monthly expense under straight-line depreciation? Select the correct answer. A. Depreciation Expense$41.54 Accumulated Depreciation$41.54 B. Accumulated Depreciation$41.54 Depreciation Expense$41.54 C. Accumulated Depreciation$498.50 Depreciation Expense$498.50 D. Depreciation Expense$498.50 Accumulated Depreciation$498.50