Oregon Company is in the process of preparing its financial statements for 2024 Assume that no entries for any depreciation or accounting changes have been recorded in 2024The following information related to depreciation of fixed assets is provided to yourOregon purchased a machine on July 1, 2022, at a cost of $80,000. The machine has a salvage value of $8,000 and a useful life of 8 years. Oregon's bookkeeper recorded straightline depreciation in 2022 and 2023 but erroneously assumed a useful life of 10 yearsFollowing all appropriate adjusting/correcting journal entries, the 12/31/24 balance of Accumulated Depreciation Machine will beSelect onea $22,500Ob $27.500Oc $31,556Od $23,400O $18,000Clear my choice

Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…

Oregon Company is in the process of preparing its financial statements for 2024 Assume that no entries for any depreciation or accounting changes have been recorded in 2024 The following information related to depreciation of fixed assets is provided to you Oregon purchased a machine on July 1, 2022 at a cost of $80,000. The machine has a salvage value of $8,000 and a useful life o years Oregon's bookkeeper recorded straight line depreciation in 2022 and 2023 but erroneously assumed a useful life of 10 years Following all appropriate adjusting/correcting journal entres, the 12/31/24 balance of Accumulated Depreciation Machine will be Select one a $22.500 Ob $27,500 O $31,556 Od $23.400 O $18,000 Clear my choice

Oregon Company is in the process of preparing its financial statements for 2024 Assume that no entries for any depreciation or accounting changes have been recorded in 2024 The following information related to depreciation of fixed assets is provided to you Oregon purchased a machine on July 1, 2022 at a cost of $80,000. The machine has a salvage value of $8,000 and a useful life o years Oregon's bookkeeper recorded straight line depreciation in 2022 and 2023 but erroneously assumed a useful life of 10 years Following all appropriate adjusting/correcting journal entres, the 12/31/24 balance of Accumulated Depreciation Machine will be Select one a $22.500 Ob $27,500 O $31,556 Od $23.400 O $18,000 Clear my choice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $10,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Whispering Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) (d) (e) (f) (a) Sold for $59,000 on January 1, 2022. Sold for $59,000 on April 1, 2022. SR. Account Titles and Explanation (b) Sold for $21,000 on January 1, 2022. Sold for $21,000 on September 1, 2022. Repeat (a), assuming Whispering uses double-declining…
Dog
Owe
Wildhorse Company owns equipment that cost $67,200 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on estimated salvage value of $4,380 and an estimated useful life of 5 years.Prepare Wildhorse Company’s journal entries to record the sale of the equipment in these four independent situations (a)Sold for $32,692 on January 1, 2022. (b)Sold for $32,692 on May 1, 2022. (c)Sold for $10,400 on January 1, 2022. (d)Sold for $10,400 on October 1, 2022.
Sandhill company owns equipment that cost $120,000 when purchased on January 1, 2018. It has been depreciated using the straight line method based on estimated salvage value of $16,500 and an estimated useful life of 5 years. Prepare sandhill company's journal entries to record the sale of the equipment in these four independent situations. Sold for $59,000 on Jan 1, 2021 Sold for $59,000 on May 1, 2021 Sold for $38,500 on Jan 1, 2021 Sold for $38,500 on October 1, 2021
Tinker Bell Company sold a delivery wing truck on March 1, 2022. Tinker had acquired the wing truck on January 1, 2019, for $ 52,000. At acquisition, Tinker had estimated that the truck would have a useful life of 6 years and a residual value of $4,000. On December 31, 2021, the truck had a book value of $ 28,000. Required: Prepare the journal entries to recognized the depreciation expense for 2022 prior to the sale and the sale of the truck assuming the truck sold at the following different prices (you will have 3 entries total): $32,000 26,000
Martinez Company is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you. 1 Martinez purchased equipment on January 2, 2017, for $92,900. At that time, the equipment had an estimated useful life of 10 years with a $4,900 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2020, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $2,900 salvage value. 2 During 2020, Martinez changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $280,000. It had a useful life of 10 years and a salvage value of $28,000. The following computations present…
Presented below is information related to equipment owned by Novak Company at December 31, 2025. Cost $6,820,000 Accumulated depreciation to date 670,000 Expected future net cash flows 4,730,000 Fair value 3,430,000 Assume that Novak will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 4 years and no salvage value. (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Date December 31, 2025 Account Titles and Explanation Debit Credit I
Sunland Corporation owns machinery that cost $25,200 when purchased on July 1, 2022. Depreciation has been recorded at a rate of $3,024 per year, resulting in a balance in accumulated depreciation of $10,584 at December 31, 2025. The machinery is sold on September 1, 2026, for $13,230. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale.
On January 1, 2021, Truesdale, Incorporated, purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the double-declining balance method, depreciation for 2023 is approximately $3,667 $2,445 $3,000 $667
Swifty Company purchased a new plant asset on April 1, 2025, at a cost of $720,000. It was estimated to have a service life of 20 years and a salvage value of $56,400. Swifty accounting period is the calendar year. (a) 4 Compute the depreciation for this asset for 2025 and 2026 using the sum-of-the-years'-digits method. (Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 45,892.) Depreciation for 2025 Depreciation for 2026 IA $ $
Vaughn Corporation owns machinery that cost $26,000 when purchased on July 1, 2021. Depreciation has been recorded at a rate of $3,120 per year, resulting in a balance in accumulated depreciation of $10,920 at December 31, 2025. The machinery is sold on September 1, 2026, for $6,760. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale. (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 O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation (a) (b) Debit Credit