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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

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

FINANCIAL ACCOUNTING
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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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 Annual depreciation expense on car C
Transcribed Image Text: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 Annual depreciation expense on car C
ts 10 points 1 Skipped Mc 1 Print Print 1-b. For each transaction, record the adjusting entry on December 31, 2023. Skipped View transaction list Journal entry worksheet < < Show Transcribed Text 1 1 Record annual depreciation on equipment. Date Dec 31, 2023 Note: Enter debits before credits. View transaction list Record entry 2 Date Dec 31, 2023 Show Transcribed Text Journal entry worksheet 1-b. For each transaction, record the adjusting entry on December 31, 2023. Record entry Note: Enter debits before credits. 3 3 Record annual depreciation on Furniture. View transaction list 1 General Journal Clear entry Date Dec 31, 2023 2 3 General Journal Journal entry worksheet Record entry Clear entry Record annual depreciation on a Car. Note: Enter debits before credits. C 1-b. For each transaction, record the adjusting entry on December 31, 2023. General Journal Debit Credit Clear entry View general journal Debit *** > Debit Credit View general journal Credit View general journal
Transcribed Image Text:ts 10 points 1 Skipped Mc 1 Print Print 1-b. For each transaction, record the adjusting entry on December 31, 2023. Skipped View transaction list Journal entry worksheet < < Show Transcribed Text 1 1 Record annual depreciation on equipment. Date Dec 31, 2023 Note: Enter debits before credits. View transaction list Record entry 2 Date Dec 31, 2023 Show Transcribed Text Journal entry worksheet 1-b. For each transaction, record the adjusting entry on December 31, 2023. Record entry Note: Enter debits before credits. 3 3 Record annual depreciation on Furniture. View transaction list 1 General Journal Clear entry Date Dec 31, 2023 2 3 General Journal Journal entry worksheet Record entry Clear entry Record annual depreciation on a Car. Note: Enter debits before credits. C 1-b. For each transaction, record the adjusting entry on December 31, 2023. General Journal Debit Credit Clear entry View general journal Debit *** > Debit Credit View general journal Credit View general journal
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how to find the book value for december 31 and accumulated depreciation 

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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