Answered: Johnson's industry purchased a metal…

Johnson's industry purchased a metal working late for 32,000. This item will be used for business 90% of the time accountant elected

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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Year 1 account. January 1 Paid $262,000 cash plus $10,480 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $26,200 salvage value. Loader costs are recorded in the Equipment January 3 Paid $7,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $2,100. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,300 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,075 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet > 1 2 3 4 5 6 Recorded annual straight-line depreciation on the…
Johnson Industries purchased a metal-working lathe for $38,000. This item will be used for business 90% of the time. Accountants elected to take a $18,000 section 179 deduction and utilize the special depreciation allowance of 50%. Prepare a depreciation schedule (in $) using MACRS. Round all dollar amounts to the nearest cent. Johnson Industries MACRS Depreciation Schedule-Metal-working Lathe End of Year Basis for Depreciation x Recovery Percent = MACRS Depreciation Deduction Accumulated Depreciation 1 2 3 4 Need Help? $ $ $ Read It X X X X Watch It X X X X Master It 33.33% = 44.45% 3 14.81% = 7.41% || = $ $ $ $ X X X X $ $ $ $ X X X X $ $ $ LA $ $ Book Value X X X X X
During April of the current year, Ronen purchased a warehouse that he used for business purposes. The basis was $1,613,000. Calculate the maximum depreciation deduction during the current year. TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line—39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% 0.535% 0.321% 0.107% Year 2–39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461
Veda Company bought a machine for $7,000. Its estimated life is 5 years. The residual value of the machine is $500. Veda uses the declining-balance method at twice the straight-line rate. Calculate the first two years’ depreciation expense. (a.) Year 1 Depreciation Expense (b.) Year 2 Depreciation Expense For tax purposes, Veda has requested the accountant to calculate what the depreciation expense will be for the class 5 piece of machinery over the first 3 years using MACRS. (a.) Year 1 Depreciation Expense (b.) Year 2 Depreciation Expense (c.) Year 3 Depreciation Expense
On January 1, Year 1, Friedman Company purchased a truck that cost $40,000. The truck had an expected useful life of 200,000 miles over 8 years and an $8,000 salvage value. During Year 2, Friedman drove the truck 19,000 miles. Friedman uses the units-of-production method. What is depreciation expense in Year 2? Note: Round your intermediate calculations to 3 decimal places. Multiple Choice O O O O $3,800 $3,040 $5,000 $4,000
A machine was on purchased on September 30th for $500,000 with a residual value of $45,000. The company estimates that the machine will last 7 years and produce 2,000,000 parts over its life. Calculate depreciation expense using the Straight-Line method for the 7-year life. (NOTE: Round your answers to the nearest dollar and enter it enter it WITHOUT decimals, commas or dollar signs [Example 75000].) 1. Year 1 __$ 2. Year 2 - 3. Year 3 4. Year 4 - 5. Year 5 - $ 6. Year 6 - 7. Year 7 8. Year 8 -
Hi there, How do I write the journal entires for this question? Thanks
Quantum Electronic Services paid P = $40,000 for its networked computer system. Both tax and book depreciation accounts are maintained. The annual tax depreciation rate is based on the previous year’s book value (BV), while the book depreciation rate is based on the original first cost (P). Use the rates listed to plot annual depreciation and book values for each method. Develop the graphs using hand calculations or a spreadsheet, as directed by your instructor.
Please prepare the following joiurnal entries: Show all calcualtions Bought a van, paying $10500 cash as a down payment and signed a 10 month $32000, 9% note payable for the balanceThe company paid 750 to have its company logo printed on the side of the van. The residual value is $7500. The old van was sold for $7500; it cost $32000 and acculumated depreciation up to the date of disposal was $30000