Mean Beans, a local coffee shop, has the following assets on January 1, 2023. Mean Beans prepares annual financial statements and has a December 31, 2023 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets. a. On January 1, 2023, purchase equipment costing $16,500 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2023, purchase furniture (tables and chairs) costing $19,100 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $2,800 after ten years. c. On January 1, 2021, Mean Beans had purchased a car costing $43,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $8,650 after eight years. Required: 1-a. For each transaction, calculate the current year's annual depreciation expense. a. Annual depreciation expense on equipment b. Annual depreciation expense on furniture c. Annual depreciation expense on car $ $ 3,300 30,275 ****** $ 12,975 inol
Mean Beans, a local coffee shop, has the following assets on January 1, 2023. Mean Beans prepares annual financial statements and has a December 31, 2023 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets. a. On January 1, 2023, purchase equipment costing $16,500 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2023, purchase furniture (tables and chairs) costing $19,100 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $2,800 after ten years. c. On January 1, 2021, Mean Beans had purchased a car costing $43,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $8,650 after eight years. Required: 1-a. For each transaction, calculate the current year's annual depreciation expense. a. Annual depreciation expense on equipment b. Annual depreciation expense on furniture c. Annual depreciation expense on car $ $ 3,300 30,275 ****** $ 12,975 inol
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mean Beans, a local coffee shop, has the following assets on January 1, 2023. Mean Beans prepares annual financial statements and
has a December 31, 2023 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets.
a. On January 1, 2023, purchase equipment costing $16,500 with an estimated life of five years. Mean Beans will scrap the equipment
after five years for $0.
b. On July 1, 2023, purchase furniture (tables and chairs) costing $19,100 with an estimated life of ten years. Mean Beans estimates
that it can sell the furniture for $2,800 after ten years.
c. On January 1, 2021, Mean Beans had purchased a car costing $43,250 with an estimated life of eight years. Mean Beans estimates
that it can sell the car for $8,650 after eight years.
Required:
1-a. For each transaction, calculate the current year's annual depreciation expense.
a. Annual depreciation expense on equipment
b. Annual depreciation expense on furniture
c. Annual depreciation expense on car
1-b. For each transaction, record the adjusting entry on December 31, 2023.
View transaction list
<
Journal entry worksheet
2
1
Pute
3
Record annual depreciation on equipment.
$ 3,300
$ 30,275
$ 12,975
Drau
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