Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine # 5027. Machine # 5027 Component Single metal housing Motor Blade View transaction list *SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $11,200 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 17 years instead of 15 years and that the residual value should be increased to $9,000. Journal entry worksheet < Date of purchase Jan. 12/18 Jan. 12/18 Jan. 12/18 Required: 1. Prepare the entry to record the purchase of the replacement blade. 1 2 Record installation of new blade. Date Jan 07, 2020 Depreciation Method* SL DDB SL Note: Enter debits before credits. Cost $ 42,000 30,000 10,200 $ 82,200 Est. Residual Est. Life $6,000 15 yrs. 2,000 1,000 10 yrs. 5 yrs. General Journal Debit Credit >

Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine # 5027. Machine # 5027 Component Single metal housing Motor Blade View transaction list SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $11,200 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 17 years instead of 15 years and that the residual value should be increased to $9,000. Journal entry worksheet < Date of purchase Jan. 12/18 Jan. 12/18 Jan. 12/18 Required: 1. Prepare the entry to record the purchase of the replacement blade. 1 2 Record installation of new blade. Date Jan 07, 2020 Depreciation Method SL DDB SL Note: Enter debits before credits. Cost $ 42,000 30,000 10,200 $ 82,200 Est. Residual Est. Life $6,000 15 yrs. 2,000 1,000 10 yrs. 5 yrs. General Journal Debit Credit >

Name: Pete's Propellers Company showed the following information in its Pro
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine# 5027.Machine # 5027ComponentSingle metal housingMotorBladeView transaction list*SL = Straight-line; DDB = Double-declining-

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

On Jan 1, 2021, ABC Company acquired a machinery at a cost of P250,000. It was estimated to have a useful life of 10 years and no residual value. The company uses the cost model to account for the machinery and the straight-line method is used in depreciating the machinery. On Dec 31, 2022, the company tested the machinery for possible impairment and determined that the recoverable value of the said machinery amounted to P150,000. On Dec 31, 2023, it was revealed that the recoverable value of the machinery had increased to P187,500. Q-29. 8.How much is the impairment loss reported in 2022? 9.What is the carrying amount of the machinery on Dec 31, 2023 before reversal of impairment? 10.What is the carrying amount of the machinery on Dec 31, 2023 on the basis that it was not impaired? 11.What amount of gain on reversal of impairment should be reported in profit or loss for 2023?
On July 1, 2014, Sunland Enterprises sold equipment with an original cost of $80,700 for $31,300. The equipment was purchased January 1, 2011, and was depreciated using the straight-line method over a five-year useful life with a $8,600 salvage value. Prepare the journal entry to record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit III
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…
Jeter Company purchased a new machine on May 1, 1998 for $176,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $8,000. The company has recorded monthly depreciation using the straight-line method. On March 1, 2007, the machine was sold for $24,000. What should be the loss recognized from the sale of the machine? $-0- O $3,600 $8,000 $11,600
Metlock Inc. purchased a commercial grade soft-serve ice cream machine on September 30, 2017. Metlock traded in its existing machine and paid cash in the transaction. The details of the transaction are as follows: ● List price of new freezer $16,600 ● Cash paid 11,040 ● Cost of old machine (4-year life, $1,200 salvage value) 14,000 ● Accumulated depreciation—old machine (straight-line) 6,400 ● Secondhand fair value of old machine 5,360 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance.Metlock’s fiscal year ends on December 31, and Metlock recorded depreciation on the old machine through September 30, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) Exchange has commercial substance: enter an account title To…
Meman
Bramble Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $800 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter $20,200 No. Account Titles and Explanation (a) Exchange has commercial substance: 12,800 14,300 8,100 6,700 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Bramble's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (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.) Debit Credit
2. Calculate the total depreciation expense to be recorded on Machine # 5027 for 2023. Total Depreciation expense
In recent years, Tamarisk Company 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 2 1 3 (a1) Acquired Jan. 1, 2020 July 1, 2021 Nov. 1, 2021 Depreciable cost $ eTextbook and Media (a2) Save for Later For the declining-balance method, Tamarisk Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 39,000. Actual hours of use in the first 3 years were 2021, 700; 2022, 4,300; and 2023, 7,400. MACHINE 1 Cost $ 97,200 89,500 86,000 MACHINE 2 Salvage Value $ 13,000 10,000 8,000 For Machine #3, calculate depreciable cost per hour under units-of-activity method. MACHINE 3 Useful Life (in years) $ 8 Accumulated depreciation 5 6 Depreciation Method Compute the amount of accumulated…
Funseth Farms Inc. purchased a tractor in 2018 at a cost of $34,800. The tractor was sold for $3,400 in 2021. Depreciation recorded through the disposal date totaled $30,000. (1) Prepare the journal entry to record the sale. (2) Now assume the tractor was sold for $11,200; prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the sale of the tractor for $3,400. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal >
Please don't give image format
1