Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $121.500. The PPE subledger shows the following information regarding the boat Component Fibreglass body Motor View transaction list Fishing Boot - 22 Foot With Inboard Motor: Deprec. Method SL SL Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. Date of Purchase Apr. 9/12 Apr. 9/12 On June 27, 2020, $81,000 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 $6,000. 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 Date June 27, 2020 Journal entry worksheet < 1 2 Record to update depreciation in 2020 regarding motor being replaced. Note: Enter debits before credits. Record entry Est. Cost Residual $46,500 $9,000 75,000 $121,500 General Journal Clear entry Debit Est. Life 15 yr 10 yr Credit View general journal b. Depreciation taken on the fishing boat (body plus motor) on December 31, 2020, the company's year-end. (Do not round intermediate calculations and round final answers to whole dollars)
Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $121.500. The PPE subledger shows the following information regarding the boat Component Fibreglass body Motor View transaction list Fishing Boot - 22 Foot With Inboard Motor: Deprec. Method SL SL Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. Date of Purchase Apr. 9/12 Apr. 9/12 On June 27, 2020, $81,000 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 $6,000. 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 Date June 27, 2020 Journal entry worksheet < 1 2 Record to update depreciation in 2020 regarding motor being replaced. Note: Enter debits before credits. Record entry Est. Cost Residual $46,500 $9,000 75,000 $121,500 General Journal Clear entry Debit Est. Life 15 yr 10 yr Credit View general journal b. Depreciation taken on the fishing boat (body plus motor) on December 31, 2020, the company's year-end. (Do not round intermediate calculations and round final answers to whole dollars)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Don't give answer in image
Transcribed Image Text:Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $121,500. The PPE
subledger shows the following information regarding the boat
Component
Fibreglass body
Motor
View transaction list
Required:
1. Record the appropriate entries regarding the
a. Purchase of the replacement motor on June 27, 2020.
On June 27, 2020, $81,000 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 $6,000. 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.
<
Journal entry worksheet
2
Date
June 27, 2020
Fishing Boat - 22 Foot With Inboard Motor:
Deprec.
Method
SL
SL
Date of Purchase
Apr. 9/12
Apr. 9/12
Record to update depreciation in 2020 regarding motor being replaced.
Note: Enter debits before credits.
Record entry
View transaction list
General Journal
Date
Dec 31, 2020
Clear entry
Journal entry worksheet
< 1
Record entry
Note: Enter debits before credits.
Est.
Cost Residual
$46,500
$9,000
-8-
75,800
$121,500
b. Depreciation taken on the fishing boat (body plus motor) on December 31, 2020, the company's year-end. (Do not round
intermediate calculations and round final answers to whole dollars.)
General Journal
Debit
Record revised depreciation for 2020 on the boat (boat body plus motor).
Clear entry
Credit
Est.Life
15 yr
10 yr
View general journal
Debit
Credit
View general journal
2. Calculate total depreciation taken on the fishing boat (body plus motor) for the company's year ended December 31, 2020. (Round
the final answers to the nearest whole dollar.)
Total 2020 depreciation
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education