PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alt- [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Buffalo Machinery bought three used machines. The machines immedia overhauled, were installed, and started operating. Because the machines were different, each was re- the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,900 990 1,170 890

PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alt- [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Buffalo Machinery bought three used machines. The machines immedia overhauled, were installed, and started operating. Because the machines were different, each was re- the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,900 990 1,170 890

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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In recent years, Blossom Corporation has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Cost Residual Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2025 $86,500 $10,900 5 Straight-line 2 July 1, 2026 77,500 10,590 5 Diminishing-balance 3 Nov. 1, 2026 75,521 6,050 6 Units-of-production For the diminishing-balance method, Blossom Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 25,730. Actual hours of use in the first 3 years were: 2026, 420; 2027, 4,490; and 2028, 4,970. (a) - Your answer is partially correct. Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round…
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Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Algernon Companies bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,000 900 900 710 PA9-1 (Algo) Part 3 3. Prepare the journal entry to record year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 and $1,000 residual value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account years field.)
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! Required information [The following information applies to the questions displayed below.] Faucet Landscaping purchased a tractor at a cost of $33,000 and sold it three years later for $16,500. Faucet recorded depreciation using the straight-line method, a five-year service life, and a $2,000 residual value. Tractors are included in the Equipment account. 2. Assume the tractor was sold for $10,300 instead of $16,500. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the sale of tractor. Check
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From page 7-2 of the VLN, intangible assets are long term assets and would NOT include: Group of answer choices A. Goodwill B. Natural gas C. Patents D. Copyrights
Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year. The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060. CP9-1 (Algo) Part 4 4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.…
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