Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2015, for $111.500 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, 2023 Fishing Boat 22 Foot with Inboard Motor: Deprec Method SL SL < Date of Purchase Apr. 9/15 Apr. 9/15 On June 27, 2023, $77,000 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 $2.000 Early in 2023, 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 1 2 Cast $ 40,500 71,000 $111,500 Est. Residual $9,000 -0- Est Life 15 yr 10 yr Record to update depreciation in 2023 regarding motor being replaced.
Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2015, for $111.500 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, 2023 Fishing Boat 22 Foot with Inboard Motor: Deprec Method SL SL < Date of Purchase Apr. 9/15 Apr. 9/15 On June 27, 2023, $77,000 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 $2.000 Early in 2023, 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 1 2 Cast $ 40,500 71,000 $111,500 Est. Residual $9,000 -0- Est Life 15 yr 10 yr Record to update depreciation in 2023 regarding motor being replaced.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject - acounting
Transcribed Image Text:Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2015, for $111.500 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, 2023
Fishing Boat 22 Foot with Inboard Motor:
Deprec
Method
SL
SL
<
Date of Purchase
Apr. 9/15
Apr. 9/15
On June 27, 2023, $77,000 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 $2.000 Early in 2023, 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
1
2
Cast
$ 40,500
71,000
$111,500
Est.
Residual
$9,000
-0-
Est Life
15 yr
10 yr
Record to update depreciation in 2023 regarding motor being replaced.
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