Vinubhai On December 31, 2022, Shamrock Inc. owns a machine with a carrying amount of $856,000. The original cost and accumulateddepreciation for the machine on this date are as follows:MachineAccumulated depreciationDepreciation is calculated at $84,000 per year on a straight-line basis.A set of independent situations follows. For each situation, prepare the journal entry for Shamrock to record the transaction. Ensurethat depreciation entries are recorded to update the machine's carrying amount before its disposal. Assume that Shamrock uses IFRSfor financial statement purposes.(a)$1,360,000504,000$856,000A fire completely destroyed the machine on August 31, 2023. An insurance settlement of $426,000 was received for this casualty.Assume the settlement was received immediately. (Credit account titles are automatically indented when the amount is entered. Do notindent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries beforecredit entries.)Date Account Titles and ExplanationAugust31, 2023August31, 2023(To record depreciation on machinery)(To record disposal of machinery)DebitCredit11

To record the disposal of machinery, the loss on machinery must be calculated . The loss on…

Answered: ne ulated depreciation $1,360,000…

Business

Accounting

ne ulated depreciation $1,360,000 504,000 $856,000 lation is calculated at $84,000 per year on a straight-line

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

See similar textbooks

Similar questions

A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for 1,500 each. The company uses group depreciation on a straight-line basis. Required: 1. Prepare journal entries to record the acquisition and the first years depreciation expense. 2. If one of the cars is sold at the beginning of the second year for 7,000, what journal entry is required?
Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.
Dengar
Vaughn Company purchased equipment for $201,700 on October 1, 2025. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 32,000 units and estimated working hours are 20,000. During 2025, Vaughn uses the equipment for 550 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Vaughn is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) (b) (d) Straight-line method for 2025 (c) Activity method (working hours) for 2025 (e) Activity method (units of output) for 2025 Sum-of-the-years'-digits method for 2027 Double-declining-balance method for 2026 $ $ $ $
Prepare the journal entries to record the following transactions for Wildhorse Company, which has a calendar year end and uses the straight-line method of depreciation. On September 30, 2022, the company sold old equipment for $119,600. The equipment was purchased on January 1, 2020, for $249,600 and was estimated to have a $41,600 salvage value at the end of its 5-year life. Depreciation on the equipment has been recorded through December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) On June 30, 2022, the company sold old equipment for $62,400. The equipment originally cost $93,600 and had accumulated depreciation to the date of disposal of $39,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. On December 29, 2021, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation.
On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop- down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet 1 On December 29, 2021, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Note: Enter debits before credits. Date Dec. 29 General Journal Debit Credit
Metlock Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $141,600. The company estimated that the machine would have a salvage value of $15,600 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round A depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.) (a) (b) (c) Straight-line depreciation for 2025 Activity method for 2025, assuming that machine usage was 850 hours Sum-of-the-years'-digits for 2026 (d) Double-declining-balance for 2026 eTextbook and Media Save for Later Search $ $ $ DELL Attempts: 0 of 3 used D Submit Answer
At the beginning of the current year, Andy Company has equipment that originally cost $70,000, has $49,000 accumulated depreciation, and is being depreciated at $7,000 per year. Andy sells this equipment for $15,500 at the end of the current year. Required: Prepare journal entries to record both the current year’s depreciation and the disposal of the equipment.
Sandhill Co. purchased a new machine on October 1, 2022, at a cost of $80,010. The company estimated that the machine has a salvage value of $7,280. The machine is expected to be used for 72,400 working hours during its 7-year life.Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, e.g. 5,275.25.) 2022 2023 The depreciation expense under the straight-line method $Enter a dollar amount for year 2022 $Enter a dollar amount for year 2023
Sunland Company owns equipment that cost $114,000 when purchased on January 2, 2024. It has been depreciated using the straight-line method based on estimated residual value of $6,000 and an estimated useful life of five years. Following are the four independent situations. Assume depreciation has been recorded to the date of sale. (a) Prepare Sunland Company's journal entry to record the sale of the equipment for $51,600 on January 2, 2027. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles Jan. 2 Debit Credit