On January 1, 2024, XYZ Corporation purchased office equipment for $50,000, paying $20,000 in cash and signing a note payable for the remaining $30,000. The office equipment has an estimated useful life of 10 years, and XYZ Corporation uses straight-line depreciation with no salvage value. At the end of the year, the company records depreciation for the office equipment. What are the journal entries required for the initial purchase of the equipment and the year-end depreciation? On March 15, 2024, ABC Company purchased a delivery truck for $80,000. The company paid $50,000 in cash and financed the remaining $30,000 with a 5-year loan. The delivery truck has an estimated useful life of 8 years and a salvage value of $8,000. At the end of the year, ABC Company records depreciation for the truck using the straight-line method. What are the journal entries required for the purchase and year-end depreciation? On September 1, 2024, DEF Enterprises purchased new office furniture for $15,000. The company paid the full amount in cash. The furniture is expected to have a useful life of 5 years and no salvage value. At the end of the year, DEF Enterprises records depreciation for the office furniture. What are the journal entries required for the purchase of the furniture and the year- end depreciation?
On January 1, 2024, XYZ Corporation purchased office equipment for $50,000, paying $20,000 in cash and signing a note payable for the remaining $30,000. The office equipment has an estimated useful life of 10 years, and XYZ Corporation uses straight-line depreciation with no salvage value. At the end of the year, the company records depreciation for the office equipment. What are the journal entries required for the initial purchase of the equipment and the year-end depreciation? On March 15, 2024, ABC Company purchased a delivery truck for $80,000. The company paid $50,000 in cash and financed the remaining $30,000 with a 5-year loan. The delivery truck has an estimated useful life of 8 years and a salvage value of $8,000. At the end of the year, ABC Company records depreciation for the truck using the straight-line method. What are the journal entries required for the purchase and year-end depreciation? On September 1, 2024, DEF Enterprises purchased new office furniture for $15,000. The company paid the full amount in cash. The furniture is expected to have a useful life of 5 years and no salvage value. At the end of the year, DEF Enterprises records depreciation for the office furniture. What are the journal entries required for the purchase of the furniture and the year- end depreciation?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...
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Transcribed Image Text:On January 1, 2024, XYZ Corporation purchased office equipment for
$50,000, paying $20,000 in cash and signing a note payable for the
remaining $30,000. The office equipment has an estimated useful life
of 10 years, and XYZ Corporation uses straight-line depreciation with
no salvage value. At the end of the year, the company records
depreciation for the office equipment. What are the journal entries
required for the initial purchase of the equipment and the year-end
depreciation? On March 15, 2024, ABC Company purchased a delivery
truck for $80,000. The company paid $50,000 in cash and financed the
remaining $30,000 with a 5-year loan. The delivery truck has an
estimated useful life of 8 years and a salvage value of $8,000. At the
end of the year, ABC Company records depreciation for the truck using
the straight-line method. What are the journal entries required for the
purchase and year-end depreciation? On September 1, 2024, DEF
Enterprises purchased new office furniture for $15,000. The company
paid the full amount in cash. The furniture is expected to have a useful
life of 5 years and no salvage value. At the end of the year, DEF
Enterprises records depreciation for the office furniture. What are the
journal entries required for the purchase of the furniture and the year-
end depreciation?
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