Solve this accounting questions On December 31, Pong Inc own a $6,500 lathing machine, purchased on November 1, with afive-year estimated life. It estimates a residual value of $500 and records depreciation usingthe straight-line method.What is the journal entry to recorded depreciation for this machine assuming no entry hasbeen made to date?

Step 1: Define Depreciation RateThe use of depreciation rate is essential for several reasons in…

Answered: On December 31, Pong Inc own a $6,500…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...

See similar textbooks

Similar questions

I need answer of this question solution general accounting
On April 1, 20-3, Kwik Kopy Printing purchased a copy machine for $50,000. The estimated life of the machine is five years, and it has an estimated salvage value of $5,000. The machine was used until July 1, 20-6. Required: 1. Assume that Kwik Kopy uses straight-line depreciation and prepare the following entries: (a) Adjusting entries for depreciation on December 31 of 20-3 through 20-5. (b) Adjusting entry for depreciation on June 30, 20-6, just prior to trading in the asset. (c) On July 1, 20-6, the copy machine was traded in for a new copy machine. The market value of the new machine is $38,000. Kwik Kopy must trade in the old copy machine and pay $22,000 for the new machine. 2. Assume that Kwik Kopy uses sum-of-the-years’-digits depreciation and prepare the following entries: (a) Adjusting entries for depreciation on December 31, 20-3 through 20-5. (b) Adjusting entry for depreciation on June 30, 20-6, just prior to trading in the asset. (c) On July 1, 20-6, the…
create the journal entry for depreciation for the end of the first year FOR BOTH straight line depreciation and units-of-activity. You then need to create the journal entry to record the sale of that item at the end of its life assuming the straight line method was used to record depreciation for the life of the item. A&C Property Management, LLC purchased a piece of equipment that cost $10,000 and spent $2000 on its delivery. The expected life of the equipment is 20 years and salvage value is expected to be $5000 at the end of the 10th year. A&C Property Management, LLC also invested in some property for storage and a warehouse at that same time. The storage property was purchased at $100,000, and the warehouse was purchased for $50,000. The salvage value of the warehouse is expected to be $5000 while its expected life is 25 years. The equipment purchased 4 years ago was sold to an individual for $7,500. While the warehouse was sold at the end of the 5th year at the…
Eckan Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first year. 2022 Jan 1 Purchased a computer from the Computer Center for $2,500 cash Dec. 31 Recorded 2022 depreciation on the basis of a four year life and estimated salvage value of $500. Instructions T Prepare the necessary entries for Jan 1 and Dec 31. (Show calculations.)
Canyon Company has a used delivery truck that originally cost $24,500. Straight-line depreciation on the truck has been recorded for three years, with a $2,000 expected salvage value at the end of its estimated six-year useful life. The last depreciation entry was made at the end of the third year. Four months into the fourth year, Canyon disposes of the truck. Required Prepare journal entries to record:a. Depreciation expense to the date of disposal.b. Sale of the truck for cash at its book value.c. Sale of the truck for $14,000 cash.d. Sale of the truck for $11,000 cash.e. Theft of the truck. Canyon carries no insurance for theft.
Can you help me with general accounting question?
Yazzie Incorporated bought a machine at the beginning of the year at a cost of $34,000. The estimated useful life was five years and the residual value was $4,000. Required: 1. Complete a depreciation schedule for the straight-line method. 2. Prepare the journal entry to record Year 2 depreciation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Year 2 depreciation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No X Answer is not complete. A Transaction 1 General Journal Depreciation Expense Accumulated Depreciation-Equipment Depreciation Expense Accumulated Depreciation-Equipment Depreciation Expense Accumulated Depreciation-Equipment Debit 6,000✔ Credit 6,000✔ Re
On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $238,400 and has accumulated depreciation of $214,560. Depreciation has been recorded up to the end of the year. Which of the following will be included in the journal entry for the disposal? a. Loss on Disposal of Asset, debit, $214,560 b. Accumulated Depreciation, debit, $238,400 c. Gain on Disposal of Asset, credit, $23,840 d. Equipment, credit, $238,400
I'm struggling to understand what was the depreciation for this problem and how to accurately journal this transaction
On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $209,525 and has accumulated depreciation of $188,572.50. Depreciation has been recorded up to the end of the year. Which of the following will be included in the entry to record the disposal? a.Accumulated Depreciation, debit, $209,525 b.Gain on Disposal of Asset, credit, $20,952.50 c.Loss on Disposal of Asset, debit, $188,572.50 d.Equipment, credit, $209,525
On January 1 of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine's useful life to be 4 years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 12,000 units were produced. Prepare the necessary December 31 adjusting journal entry to record depreciation for the first year assuming the company uses: 1. The straight-line method of depreciation 2. The units-of-production method of depreciation 3. The double-declining balance method of depreciation GENERAL JOURNAL Account Titles and Explanation PR Debit Credit Requirement 1 Dec. 31 Record annual depreciation. Show calculation below. Requirement 2 Dec. 31…
On January 2, 2011, Jansing Corporation acquired a new machine with an estimated useful life offive years. The cost of the equipment was $40,000 with a residual value of $5,000.a. Prepare a complete depreciation table under the three depreciation methods listed below. Usea format similar to the illustrations in Exhibits 9–4 , 9–5 , and 9–6 . In each case, assume that afull year of depreciation was taken in 2011.1. Straight-line.2. 200 percent declining-balance. 3. 150 percent declining-balance with a switch to straight-line when it will maximize depre-ciation expense. b. Comment on significant differences or similarities that you observe among the patterns ofdepreciation expense recognized under each of these methods.

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

SEE MORE TEXTBOOKS