On January 2, 2021, Potter Furniture purchased display shelving for $8,400 cash, expecting the shelving to remain in service for five years. Potter depreciated the shelving on a double-declining-balance basis, with $1,800 estimated residual value. On October 31, 2022, the company sold the shelving for $2,200 cash. Read the requirement. Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Oct 31 Question Viewer Journal Entry Accounts Debit Credit

On January 2, 2021, Potter Furniture purchased display shelving for $8,400 cash, expecting the shelving to remain in service for five years. Potter depreciated the shelving on a double-declining-balance basis, with $1,800 estimated residual value. On October 31, 2022, the company sold the shelving for $2,200 cash. Read the requirement. Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Oct 31 Question Viewer Journal Entry Accounts Debit Credit

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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On August 31, 2019, CAMELLIA Company purchased a new machinery for ₱540,000. The machinery has an estimated useful life of 5 years and depreciation is computed using the SYD method. Estimated salvage value of the machine is ₱60,000. Questions: What is the total accumulated depreciation on December 31, 2020? If CAMELLIA decides to change its depreciation method to straight-line at the start of 2021, what is the depreciation expense for the year ended December 31, 2021? * Present solutions.
On January 2, 2016, King Pet purchased fixtures for $60,4000 cash, expecting the fixtures to remain in service for eight years. King Pet has depreciated the fixtures on a straight-Line basis, with $10,000 residual value. On April 30, 2018, King Pet sold the fixtures for $39,200 cash. Record both depreciation expense for 2018 and sale of the fixtures on April 30, 2018. (Assume the modified half-month convention is used. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Waterway Company purchased a computer system for $86,700 on January 1, 2019. It was depreciated based on a 8-year life and an $16,700 salvage value. On January 1, 2021, Waterway revised these estimates to a total useful life of 4 years and a salvage value of $10,500. Waterway uses straight-line depreciation Prepare Waterway's entry to record 2021 depreciation expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
Millco Inc., acquired a machine that cost $456,000 early in 2019. The machine is expected to last for eighth years, and its estimated salvage value at the end of its life is $66,000.Required:a. Using straight-line depreciation, calculate the depreciation expense to be recognized in the first year of the machine's life and calculate the accumulated depreciation after the fifth year of the machine's life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense for the third year of the machine's life. c. What will be the net book value of the machine at the end of its eighth year of use before it is disposed of, under each depreciation method?
Dont forget to Select the explanation on the last line of the journal entry table.
Mill Creek Golf Club, Inc. purchased a computer for $2,900, debiting Computer Equipment. During 2022 and 2023, Mill Creek Golf Club, Inc. recorded total depreciation of $2,300 on the computer. On January 1, 2024, Mill Creek Golf Club, Inc. traded in the computer for a new one, paying $2,700 cash. The fair market value of the new computer is $4,500. Journalize Mill Creek Golf Club, Inc.'s exchange of computers. Assume the exchange had commercial substance. Let's begin by calculating the gain or loss on the exchange of computer equipment on January 1. Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss) Journalize Mill Creek Golf Club, Inc.'s exchange of computers. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Jan. 1 Accounts and Explanation Debit Credit
Swann Company sold a delivery truck on April 1, 2019. Swann had acquired the truck on January 1, 2015, for $42,000. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $5,000. Swann uses the straight-line method of depreciation. At December 31, 2018, the truck had a book value of $12,400. Required: 1. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for: a. $12,000 b. $9,000 2. How should the gain or loss on disposal be reported on the income statement? 3. Assume that Swann uses IFRS and sold the truck for $12,000. In addition, Swann had previously recorded a revaluation surplus related to this machine of $4,000. What journal entries are required to record the sale?
On January 2, 2017, Snug Clothing Consignments purchased showroom fixtures for $19,000 cash, expecting the fixtures to remain in service for five years. Snug has depreciated the fixtures on a double-declining-balance basis, with zero residual value. On October 31, 2018, Snug sold the fixtures for $8,200 cash. Record both depreciation expense for 2018 and sale of the fixtures on October 31, 2018. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Note that 2017 depreciation was recorded and posted in 2017.) Begin by recording the depreciation expense for January 1, 2018 through October 31, 2018. Date Oct. 31 Accounts and Explanation Debit Credit
On March 31, 2021, management of Quality Appliances committed to a plan to sell equipment. The equipment was available for immediate sale, and an active plan to locate a buyer was initiated. The equipment had been purchased on January 1, 2019, for $260,000. The equipment had an estimated six-year service life and residual value of $20,000. The equipment was being depreciated using the straight-line method. Quality’s fiscal year ends on December 31.Required:1. Calculate the equipment’s book value as of March 31, 2021 (Hint: Depreciation for 2021 would include up to March 31).2. By December 31, 2021, the equipment has not been sold, but management expects that it will be sold in 2022 for $150,000. For what amount is the equipment reported in the December 31, 2021, balance sheet?
On January 2, 2023, Loved Clothing Consignments purchased showroom fixtures for $10,000 cash, expecting the fixtures to remain in service for five years. Loved has depreciated the fixtures on a double-declining-balance basis, with zero residual value. On October 31, 2024, Loved sold the fixtures for $5,500 cash. Record both depreciation expense for 2024 and sale of the fixtures on October 31, 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Note that 2023 depreciation was recorded and posted in 2023.) Begin by recording the depreciation expense for January 1, 2024 through October 31, 2024. Accounts and Explanation Date Oct. 31 Depreciation Expense-Fixtures Accumulated Depreciation-Fixtures To record depreciation on fixtures. Debit 11 Credit 27