Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $96,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL Date of Purchase Apr. 9/12 Apr. 9/12 Est. Cost Residual $6,000 -0- Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. $31,500 65,000 $96,500 Est. Life 15 yr 10 yr On June 27, 2020, $71,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $5,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value.

Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $96,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL Date of Purchase Apr. 9/12 Apr. 9/12 Est. Cost Residual $6,000 -0- Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. $31,500 65,000 $96,500 Est. Life 15 yr 10 yr On June 27, 2020, $71,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $5,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value.

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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