On June 15, 2024, Perfect Furniture discarded equipment that had a cost of $8,000, a residual value of $0, and was fully depreciated. Journalize the disposal of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)DateAccounts and ExplanationJun. 15Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentGain on DisposalLoss on DisposalMaintenance ExpensesDebitCredit On June 15, 2024, Perfect Furniture discarded equipment that had a cost of $8,000, a residual value of $0, and was fully depreciated. Journalize the disposal of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)DateAccounts and ExplanationJun. 15Discarded fully depreciated equipment.Sold equipment for cash.To record depreciation on equipment.To record sale of land.DebitCredit

Step 1:AnswerDate Particulars ExplanationDebit CreditJun15Accumulated depreciation…

Answered: On June 15, 2024, Perfect Furniture…

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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how to journalize McClain Company incurred the following expenditures during 2019: Apr. 9 the air conditioning system in the old manufacturing facility was replaced for 83,000. the old air conditioning syste, had a cost of $74,000 and a book value of $2,000. the old air conditioning system had no scrap value. June 29 Annual maintenance of $38,000 was performed.
On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $230,200 and has accumulated depreciation of $207,180.00. 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? Oa. Accumulated Depreciation, debit, $230,200 Ob. Loss on Disposal of Asset, debit, $207,180.00 Oc. Gain on Disposal of Asset, credit, $23,020.00 Od. Equipment, credit, $230,200 Previous Next
Chuck Company purchases performs a major inspection on its machinery on 1 January 20X4 for $137,000. The company uses the straight-line method of depreciation. The company performs major inspections every 5 years. The bookkeeper erroneously expenses the entire amount to repairs and maintenance. The error is discovered at the end of 20X5. Required: Prepare the journal entry required in 20X5
The following data relate to the Machinery account of Wildhorse, Inc. at December 31, 2025. Original cost Year purchased Useful life Salvage value Depreciation method Accum. depr. through 2025* a. Cash A Machinery (Machine A) $54,280 2020 15,340 10 years $3,658 Sum-of-the-years'-digits $36,816 B 15,340 $60,180 2021 Machinery 15,000 hours $3,540 Activity $41,536 C $94,400 2022 15 years $5,900 Straight-line $17,700 D $94,400 *In the year an asset is purchased, Wildhorse, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Wildhorse, Inc. takes a full year's depreciation on the asset. The following transactions occurred during 2026. 2024 10 years $5,900 On May 5, Machine A was sold for $15,340 cash. The company's bookkeeper recorded this retirement in the following manner in the cash receipts journal. Double-declining balance $18,880
Proper net income computation
On July 1, Andrew Company purchased equipment at a cost of $150,000 that has a depreciable cost of $120,000 and an estimated useful life of 3 years or 60,000 hours. a. Using straight-line depreciation, prepare the journal entry to record depreciation expense for the first year ending December 31. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - b. Using straight-line depreciation, prepare the journal entry to record depreciation expense for the second year ending December 31. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - c. Using straight-line depreciation, prepare the journal entry to record depreciation expense for the last year ending December 31. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select -
If a fixed asset, such as a computer, were purchased on January 1st for $2,101.00 with an estimated life of 4 years and a salvage or residual value of $107.00, what is the journal entry for monthly expense under straight-line depreciation? Select the correct answer. A. Depreciation Expense$41.54 Accumulated Depreciation$41.54 B. Accumulated Depreciation$41.54 Depreciation Expense$41.54 C. Accumulated Depreciation$498.50 Depreciation Expense$498.50 D. Depreciation Expense$498.50 Accumulated Depreciation$498.50
A motor vehicle was purchased for $15,000 in 2020. It has no salvage value. Its useful life is 120,000 miles. In December 2020, it was driven for 1,100 miles. Calculate the depreciation expense for the month of December. Do not prepare a journal entry.
Mango Company purchased a delivery truck for $66,000 on January 2, 2021. The useful life was estimated to be 5 years and the salvage value was estimated at $26,000. The truck is depreciated using the straight-line method. When preparing adjusting entries for December 31, 2023, it was discovered that the salvage value had not been deducted when computing depreciation for 2021 and 2022. The correct amount of deprecation was recorded for 2023. What additional journal entry should be made? Answer a. Debit Accumulated Depreciation for $10,400 and credit Retained Earnings for $10,400. b. Debit Accumulated Deprecation for $15,600 and credit Depreciation Expense for $15,600. c. Debit Accumulated Deprecation for $16,000 and credit Retained Earnings for $16,000. d. No additional entry should be made as the error will be accounted for in the current period and prospectively.
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A machine was purchased on 1 January 2021 and the other details of the machine are:- Cost of machine N$324 000 Depreciation rate 5 % Determine the amount of deprecation as at 31 December 2021

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