On March 31, 2021, Company A purchased a manufacturing facility along with vehicles and other equipment. The distribution of the total purchase price of $1,500,000 to the various types of assets, along with the estimated useful lives and residual values is as follows:The purchase on March 31, 2021 included equipment at the purchase cost of $150,000.The company sold equipment for $120,000 on June 29, 2022. Company A uses the following depreciation methods:straight-line depreciation method for buildings and equipmentdouble-declining-balance method for vehicles Company A calculates partial-year depreciation based on the number of months an asset is in service. Complete the tasks below. Use the Depreciation tab for your work and only fill out the yellow cells.Find depreciation expense on the building, equipment, and vehicles for 2021.Prepare the journal entries for 2022 to record (a) depreciation on the equipment sold on June 29, 2022, and (b) the sale of the equipment. Round to the nearest whole dollar amount.Find depreciation expense on the building, remaining equipment, and vehicles for 2022. Part 1 & 3BuildingCostEstimated lifeStraight-line rate% of year depreciated2021 depreciationEquipment1 Cost2 Estimated life3 Residual value4 Straight-line rate5 % of year depreciatedAB2021750,000250.475%225,000360,00081.2575%C20222021 depreciation78 VehiclesCost240,000195,000Double-declining balance rate0.251 % of year depreciated75%2021 depreciation34 Part 25 Sale of assetAccumulated deprecation7 2021 deprecation for equipment soldCost of equipment soldEstimated lifeO Residual value1 Straight-line rate2% of year depreciatedB 2022 depreciation4557 2022 depreciation for equipment soldBCost of equipment soldEstimated lifeO Residual value1 Straight-line rate2% of year depreciatedB 2022 depreciation45 2022 depreciation journal5Date739.Account6/29/2022 Depreciation Expense12022 journal for sale of equipment2 Date4557B9Accumulated Depreciation45,000DebitCreditAccountDebit6/29/2022 CashAccumulated DepreciationLoss on Sale of Equipment8,906.00Credit150,000.00EFGHKFill in the yellow cells only.

Part 1: Depreciation Expense for 2021Building:We already have the depreciation expense for the…

Answered: Part 1 & 3 Building Cost Estimated life…

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 March 31, 2021, Company A purchased a manufacturing facility along with vehicles and other equipment. The distribution of the total purchase price of $1,500,000 to the various types of assets, along with the estimated useful lives and residual values is as follows:

The purchase on March 31, 2021 included equipment at the purchase cost of $150,000.
The company sold equipment for $120,000 on June 29, 2022.

Company A uses the following depreciation methods:

straight-line depreciation method for buildings and equipment
double-declining-balance method for vehicles

Company A calculates partial-year depreciation based on the number of months an asset is in service.

Complete the tasks below. Use the Depreciation tab for your work and only fill out the yellow cells.

Find depreciation expense on the building, equipment, and vehicles for 2021.
Prepare the journal entries for 2022 to record (a) depreciation on the equipment sold on June 29, 2022, and (b) the sale of the equipment. Round to the nearest whole dollar amount.
Find depreciation expense on the building, remaining equipment, and vehicles for 2022.