In recent years, Sarasota Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus 1 2 3 Acquired Jan. 1, 2020 (a1) Jan. 1, 2020 Jan. 1, 2021 Cost $ 99,300 126,000 91,100 Salvage Value $ 7,500 11,500 Depreciation expense $ 8,500 Useful Life in Years 4 4 4 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 118,000. Actual miles of use in the first 3 years were 2021, 27,000; 2022, 34,500; and 2023, 32,500. Depreciation Method Straight-line Declining-balance Units-of-activity For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) per mile

In recent years, Sarasota Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus 1 2 3 Acquired Jan. 1, 2020 (a1) Jan. 1, 2020 Jan. 1, 2021 Cost $ 99,300 126,000 91,100 Salvage Value $ 7,500 11,500 Depreciation expense $ 8,500 Useful Life in Years 4 4 4 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 118,000. Actual miles of use in the first 3 years were 2021, 27,000; 2022, 34,500; and 2023, 32,500. Depreciation Method Straight-line Declining-balance Units-of-activity For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) per mile

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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In recent years, Flakeboard Company purchased three machines. Various amortization methods were selected. Information concerning the machines is summarized below: Machine Acquired Jan. 1, 1999 Jan. 1, 2000 Nov. 1, 2001 1 2 3 Cost Residual Useful Life in Amortization Method Value $6,000 10,000 6,000 $96,000 60,000 66,000 Years 10 8 6 Straight-line Declining-balance Units-of-activity For the declining-balance method, the company uses double the straight-line rate. For the units-of- activity method, total machine hours are expected to be 24,000. Actual hours of use in the first two years were 1,000 in 2001 and 4,500 in 2002. Instructions a) Calculate the amount of accumulated amortization on each machine at December 31, 2002. Round your answers to the nearest dollar. b) If Machine 2 has been purchased on April 1 instead of January 1, what would the amortization expense be for the machine in 1) 2000, 2) 2001, and 3) 2002?
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $48.000 The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. 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 $1,200 Exercise 11-23 (Algo) Part 2 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-decline balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list Journal entry worksheet 1 Record depreciation expense for 2024,
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In recent years, Swifty Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus 1 2 3 BUS 1 b) BUS 2 BU$ 3 Acquired Jan. 1, 2020 Jan. 1, 2020 Jan. 1, 2021 $ $ $ Cost $ 96,600 130,000 Accumulated depreciation Save for Later 89,900 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 117,000. Actual miles of use in the first 3 years were 2021, 25,500; 2022, 35,500; and 2023, 29,000. Compute the amount of accumulated depreciation on each bus at December 31, 2022. eTextbook and Media Depreciation expense Salvage Value $5,500 10,000 8,000 Useful Life in Years 5 (1) 2020 5 4 Depreciation Method Straight-line Declining-balance Units-of-activity If Bus 2 was purchased…
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Required information PB9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods (LO 9-2, LO 9-3) (The following information applies to the questions displayed below.) At the beginning of the year, Canary.com bought a shed, a machine, and a trailer. The shed initially cost $20,300 but had to be renovated at a cost of $540. The shed was expected to last 7 years, with a residual value of $1,450. Repairs costing $360 were incurred at the end of the first year of use. The machine cost $11,250, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2. The trailer cost $11,300 and was expected to last 4 years, with a residual value of $2,000. PB9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for the shed. Renovation costs Total cost
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On December 31, 2021, after a slight mishap, Wreckless Transport Co. decides to evaluate its delivery truck for possible impairment. The company has the following information as of 12-31-2021: Equipment cost 65,000 Accumulated depreciation to date 20,000 Expected future net cash flows 10,000 Fair Value on 12-31-2021 8,000 Disposal costs 2,000 Fair value of equipment on 12-31-2022 15,000 Assume that the company will continue to use this asset in the future. As of December 31, 2021, the equipment has a remaining useful life of 4 years. INSTRUCTIONS: A Prepare the journal entry, if any, to record impairment at 12-31-2021 B Prepare the journal entry, if any, at December 31, 2022 to record the increase in fair value. C Prepare the journal entry on 12-31-2021 to record impairment assuming that the company intends to dispose of the truck rather than continue to use it. Show work to explain please.