On 1/1/18 Meganco purchased a new lathe for $400,000 installed. The physical life of the lathe is 10 years with a salvage value of $20,000 a the end of that time period. The lathe was purchase for a contract that will provide revenue to Meganco for 5 years. The lathe will be sold at the end of the contract for $50,000. Required: Make the required journal entry on 12/31/18 and 12/31/19 assuming that the lathe is depreciated using 200% double declin balanc
On 1/1/18 Meganco purchased a new lathe for $400,000 installed. The physical life of the lathe is 10 years with a salvage value of $20,000 a the end of that time period. The lathe was purchase for a contract that will provide revenue to Meganco for 5 years. The lathe will be sold at the end of the contract for $50,000. Required: Make the required journal entry on 12/31/18 and 12/31/19 assuming that the lathe is depreciated using 200% double declin balanc
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...
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Question
![3.
DATE
Claireco uses the allowance method to write off all bad debts. On
12/31/XX an aged accounts receivable indicated that bad debt expense
would be $35,000. The balance in the Allowance account
on that date was a credit of $8,000. It was also estimated that the bad
debts expense for the year would be 1% of the years credit sales of
$4,000,000.
Required: A. Assume that you want to inform the banking industry
what your bad debt exposure will be, make the journal
entry required on 12/31/XX.
T
B. Assume that you want to inform the stockholders
what your bad debt exposure will be, make the journal
entry required on 12/31/XX.
ACCOUNT
DR
CR](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77ff0dc1-7282-4fa0-94cd-a91857c24dd6%2Fcdc2739d-4ebc-40da-91f1-8bf17888a635%2Fiu7uo1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3.
DATE
Claireco uses the allowance method to write off all bad debts. On
12/31/XX an aged accounts receivable indicated that bad debt expense
would be $35,000. The balance in the Allowance account
on that date was a credit of $8,000. It was also estimated that the bad
debts expense for the year would be 1% of the years credit sales of
$4,000,000.
Required: A. Assume that you want to inform the banking industry
what your bad debt exposure will be, make the journal
entry required on 12/31/XX.
T
B. Assume that you want to inform the stockholders
what your bad debt exposure will be, make the journal
entry required on 12/31/XX.
ACCOUNT
DR
CR
![1.
DATE
2.
On 1/1/18 Meganco purchased a new lathe for $400,000 installed.
The physical life of the lathe is 10 years with a salvage value of $20,000 at
the end of that time period. The lathe was purchase for a contract that will
provide revenue to Meganco for 5 years. The lathe will be sold at the end
of the contract for $50,000.
Required:
DATE
Make the required journal entry on 12/31/18 and
12/31/19 assuming that the lathe is depreciated
using 200% double declining balance.
ACCOUNT
Required:
Kenco purchased a new CNC lathe 6 years ago that had an installed cash
cost of $475,000. The lathe was being depreciated over 8 years using
straight line deprecation without taking salvage value into consideration.
On 12/31 of the sixth year, Kenco sold the lathe to a machine tool dealer
for $85,000.
DR
ACCOUNT
CR
Assume that lathe has been depreciated over six years and
that accumulated depreciation is up to date. Make the
required journal entry to record the transaction in
Kenco'saccounting system.
DR
CR](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77ff0dc1-7282-4fa0-94cd-a91857c24dd6%2Fcdc2739d-4ebc-40da-91f1-8bf17888a635%2Fx7y5kns_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1.
DATE
2.
On 1/1/18 Meganco purchased a new lathe for $400,000 installed.
The physical life of the lathe is 10 years with a salvage value of $20,000 at
the end of that time period. The lathe was purchase for a contract that will
provide revenue to Meganco for 5 years. The lathe will be sold at the end
of the contract for $50,000.
Required:
DATE
Make the required journal entry on 12/31/18 and
12/31/19 assuming that the lathe is depreciated
using 200% double declining balance.
ACCOUNT
Required:
Kenco purchased a new CNC lathe 6 years ago that had an installed cash
cost of $475,000. The lathe was being depreciated over 8 years using
straight line deprecation without taking salvage value into consideration.
On 12/31 of the sixth year, Kenco sold the lathe to a machine tool dealer
for $85,000.
DR
ACCOUNT
CR
Assume that lathe has been depreciated over six years and
that accumulated depreciation is up to date. Make the
required journal entry to record the transaction in
Kenco'saccounting system.
DR
CR
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