Post the adjustments to T-accounts. (Post entries in the order of journal entries presented in the previous part.)
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A: Formula: Straight line method depreciation= ( Cost of Asset - salvage value ) / useful life of Asset…
At the end of its first year, the
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- On 1 June 20X9 a machine was sold which cost $20,000 on 31 July 20X5. Sale proceeds were $5,500 and the profit on disposal was $1,500. The depreciation policy for machinery is straight line with a full year being charged in the year of acquisition and none in the year of sale.What is the depreciation rate?On January 1 of the current year, a company acquired and placed in service a machine at a cost of $700,000. It has been estimated that the machine has a service life of 5 years and a salvage value of $60,000. Using the double-declining-balance method of depreciation, complete the schedule below showing depreciation amounts for all 5 years (round answers to the nearest dollar). The company's year-end is December 31. Year Depreciation for the Period Beginning of Depreciation Depreciation Accumulated End of Period Book Rate Expense Depreciation Period Book Value Value 1 2 3 4 5Dexter Industries purchased packaging equipment on January 8 for $314,600. The equipment was expected to have a useful life of three years, or 7,800 operating hours, and a residual value of $26,000. The equipment was used for 3,120 hours during Year 1, 2,418 hours in Year 2, and 2,262 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, Year 1, Year 2, Year 3, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. Note: For all methods, round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Year 3 $fill in the blank 7…
- Chahal Company’s fiscal year-end is December 31. The company purchased a machine costing $129,000 on April 1, 2022. The machine is expected to be obsolete after five years (60 months), and thereafter no longer useful to the company. The estimated salvage value is $6,000. The company’s depreciation policy is to record depreciation for the portion of the year that the asset is in service. Compute depreciation expense for 2022 under the straight‑line depreciation method. (Round your answer to the nearest whole number. Do not include a $ sign in your answer.)On January 2, Alexander Company paid $21,600 to purchase equipment that has a useful life of 6 years. The equipment will be depreciated equally over the 6- year period as depreciation expense. The cost of $21,600 is divided by the useful life of 6 years to determine the amount of the yearly depreciation expense of $3,600. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on: (a) Income statement accounts (overstated, understated, or no effect)? (b) Net income (overstated, understated, or no effect)? E Aa (c) Balance sheet accounts (overstated, understated, or no effect)? Income Statement Accounts Choose One O Choose One Choose One O Balance Sheet Accounts Ⓒ2022 McGraw Hill LLC. All Rights Reserved. Terms of Use | Privacy Center (3) (1) DII DD F10 F8 Revenue: Expense: Net Income: Assets: Liabilities: Retained Earnings: Explanation :0 F1 Choose One O Choose One C Choose One X Start over do Check F2 ? 80 F3 000 000 F4 F5 MacBook Air F6 A F7 F9…Perdue Company purchased equipment on April 1 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 Year 1, 1,900 hours in Year 2, 1,600 hours in Year 3, and 900 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 Year 3 $fill in the blank 3 Year 4 $fill in the blank 4 b. Units-of-activity method Year Amount Year 1 $fill in the blank 5 Year 2 $fill in the blank 6 Year 3 $fill in the blank 7 Year 4…
- Please explain how to the methods below and only answer if you completely answer the question. Perdue Company purchased equipment on April 1 for $43,470. The equipment was expected to have a useful life of three years, or 7,020 operating hours, and a residual value of $1,350. The equipment was used for 1,300 hours during Year 1, 2,500 hours in Year 2, 2,100 hours in Year 3, and 1,120 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method.A building acquired at the beginning of the year at a cost of $112,000 has an estimated residual value of $7,800 and an estimated useful life of four years. Determine the following. (a) The double-declining-balance rate (b) the double declining-balance depreciation for the first yearA building acquired at the beginning of the year at a cost of $97,200 has an estimated residual value of $6,800 and an estimated useful life of four years. Determine the following. a. The double-declining-balance rate fill in the blank 1 % b. The double-declining-balance depreciation for the first year
- Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. (Note: For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar.) 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the three-year life of the equipment? 1. Determine the amount of depreciation expense for the three years ending December 31,…A FastBox sorting machine that cost $6,500 with a useful life of five years and a residual value of $1,000 was purchased on January 1. What is the DDB depreciation for each year? (Enter "0" for any zero balance.) Year 1 Year 2 Year 3 Year 4 Year 5 DDB depreciationOn December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $204,000 and has accumulated depreciation of $183,600. Depreciation has been recorded up to the end of the year. Which of the following will be included in the entry to record the disposal? a.Gain on Disposal of Asset, credit, $20,400 b.Equipment, credit, $204,000 c.Loss on Disposal of Asset, debit, $183,600 d.Accumulated Depreciation, debit, $204,000