Oki Company pays $283,000 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $14,150 cash for a new component that increased the equipment's productivity. 2. Paid $3,538 cash for minor repairs necessary to keep the equipment working well. 3. Paid $7100 cash for significant repairs to increase the useful life of the equipment from four to seven years. View transaction list Journal entry worksheet Record the betterment cost of $14,150 paid in cash. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit > View general Journal Journal entry worksheet Journal entry worksheet

Oki Company pays $283,000 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $14,150 cash for a new component that increased the equipment's productivity. 2. Paid $3,538 cash for minor repairs necessary to keep the equipment working well. 3. Paid $7100 cash for significant repairs to increase the useful life of the equipment from four to seven years. View transaction list Journal entry worksheet Record the betterment cost of $14,150 paid in cash. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit > View general Journal Journal entry worksheet Journal entry worksheet

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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Cheetah Copy purchased a new copy machine. The new machine cost $120,000 including installation. The company estimates the equipment will have a residual value of $30,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,500 2 2,200 3 1,900 4 2,000 Required: 1. Prepare a depreciation schedule for four years using the straight-line method. (Do not round your intermediate calculations.) CHEETAH COPY Depreciation Schedule—Straight-Line End of Year Amounts Year Depreciation Expense Accumulated Depreciation Book Value 1 $22,500 $22,500 2 22,500 3 22,500 4 22,500 Total $90,000
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[The following information applies to the questions displayed below.] NewTech purchases computer equipment for $267,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $25,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: Choose Denominator: Cost minus salvage IEstimated useful life (years) Depreciation expense %3D $ 242,000 / 4 = $ 60,500 Year Annual Depreciation Year-End Book Value Year 1 $ 60,500 $ 206,500 Year 2 60,500 146,000 Year 3 60,500 85,500 Year 4 60,500 25,000 Total 242,000 II %24
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Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,000. The printer is expected to have a four-year useful life and a $3,900 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 551,300 483,700 384,700 389,600 Year 2 Year 3 Year 4 Total 1,809,300 The printer was sold at the end of Year 4 for $4.300. Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. b. Compute the depreciation expense for each of the four years, using units-of-production depreciation. c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
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