Part C. DepreciationOn January 2, 2012, Dickens Company purchased a building and land for $740,000. The mostrecent appraisal values for the building and the land are $520,000 and $280,000, respectively.The building has an estimated useful life of 20 years and a salvage value of $60,000.1. Assuming cash transactions and straight-line depreciation, prepare journal entries torecord:a. Purcase of the building and land on January 2, 2012.b. Depreciation expense on December 31, 2012.2. Assume that after four years the land and building were sold for $585,000. Prepare thejournal entry to record the sale.

Given that, The purchase cost of Land and building = $740000 Apprised value of Building = $520000…

Answered: Part C. Depreciation On January 2,…

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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Depreciation by Three Methods; Partial Years Razar Sharp Company purchased equipment on July 1, 2014, for $69,660. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $2,160. The equipment was used for 1,000 hours during 2014, 1,900 hours in 2015, 1,600 hours in 2016, and 900 hours in 2017. Required: Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, 2016, and 2017, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount 2014 $fill in the blank 1 2015 $fill in the blank 2 2016 $fill in the blank 3 2017 $fill in the blank 4 b. Units-of-output method Year Amount 2014 $fill in the blank 5 2015 $fill in the blank 6 2016 $fill in the blank…
Equipment acquired on January 8, 20Y1, at a cost of $675,000, has an estimated useful life of 17 years and an estimated residual value of $135,000. What was the annual amount of depreciation for the years 20Y1, 20Y2, and 20Y3, using the straight-line method of depreciation? Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. Depreciation expense 20Y1$ 20Y2$ 20Y3$
Cullumber Company had the following assets on January 1, 2022. Useful Life (in years) Salvage Value $ 0 Item Cost Purchase Date Machinery $72,000 Jan. 1, 2012 10 Forklift 31,000 Jan. 1, 2019 Truck 37,400 Jan. 1, 2017 8. 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,100. The truck was discarded on December 31. Journalize all entries required on the above dates, indluding entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit (To record depreciation expense on forklift) (To record sale of forklift) (To record depreciation expense on…
Required information [The following information applies to the questions displayed below.] Hero Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $86,000 451,000 227,900 205,000 Accumulated Depreciation Book Value $86,000 288,640 179,700 123,000 • Hero purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual Land Building Equipment Patent 0 value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. HERO SANDWICH SHOP December 31, 2024 $(162,360) (48,200) (82,000) • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 3. Calculate the book value for each of the…
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