Following the depreciation example on page 7-7 of the VLN determine Activity based year 2 accumulated depreciation______High light answe Calculate annual depreciation (straight line): $Calculate depreciation for the year of sale. SRecord depreciation in the year of sale:Depreciation expense (E+àSE-)Accumulated depreciation (XA+Mower Accumulated Depreciation8,0002,000Total accumulated depreciation at time of sale: $Book value of the asset at the time of sale is:$Record the sale of the mower for $5,000:Cash (A+)Accumulated depreciation (XA- àA+Mower (A-)Record the sale of mowerRecord the sale of the mower for $6,000:Cash (A+)Accumulated depreciation (XA- àA+)Mower (A-)Record the sale of mowerRecord the sale of the mower for $4,000:Cash (A+)Accumulated depreciation (XA- àA+)Mower (A-)Record the sale of mowerANALYSISProfit Margin (net profit margin):Question: For each dollar of sales, how much profit is thecompany making?Net incomeNet salesProfit margin =x 100 = NPM%Practice: Quality Resort Toys had sales of $1,900,000; net saleswere $1,880,000 with cost of goods sold of $1,000,000 resultingin net income of $235,000.Determine the Net Profit margin %Chapter 7Page 7-9 Year 1Depreciation expenseAccumulated depreciationBook valueYear 2Depreciation expenseAccumulated depreciationBook valueYear 3Depreciation expenseAccumulated depreciationBook valuePartial Year DepreciationAssume the stamping machine was purchased on October 1*, using straight-linedepreciation, depreciation expense for year 1 would be:Change in EstimateDetermine book value before the change in estimateDetermine the remaining useful life based on the change inestimateDetermine the new residual value based on the change inestimateRecalculate depreciation expense using the book value prior tothe change in estimate as the “new cost" and use the newresidual value and remaining useful life.Depreciation expense after change in estimate =prior to change – Residual valueBVRemainingLife in yearsPART C: ASSET DISPOSITION- Record depreciation for time used in the year of disposalRemoveasset from books (Asset and AccumulatedDepreciation (XA))- Record gain/loss from removal of asset, if any.Practice: Landscape Company sells a mower it used in itsbusiness. Acquisition (historical) cost was $8,000, 4 year usefullife, no residual value; mower is sold after 1.5 years of use.Calculate annual depreciation (straight line): $Calculate depreciation for the year of sale. SRecord depreciation in the year of sale:Depreciation expense (E+àSE-)Accumulated depreciation (XA+)

Name: Following the depreciation example on page 7-7 of the VLN determine Ac
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Description: Following the depreciation example on page 7-7 of the VLN determine Activity based year 2 accumulated depreciation______High light answe Calculate annual depreciation (straight line): $Calculate depreciation for the year of sale. SRecord depreciation

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Business

Accounting

Practice: Landscape Company sells a mower it used in its business. Acquisition (historical) cost was $8,000, 4 year useful life, no residual value; mower is sold after 1.5 years of use. Calculate annual depreciation (straight line): S Calculate depreciation for the year of sale. S Record depreciation in the year of sale: Depreciation expense (E+àSE-) Accumulated depreciation (XA+)

Practice: Landscape Company sells a mower it used in its business. Acquisition (historical) cost was $8,000, 4 year useful life, no residual value; mower is sold after 1.5 years of use. Calculate annual depreciation (straight line): S Calculate depreciation for the year of sale. S Record depreciation in the year of sale: Depreciation expense (E+àSE-) Accumulated depreciation (XA+)

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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What the answer for both of them. For number 1 I had put 5,000. And number 2 I had put 12.5 and it’s was wrong. 1. Following the depreciation example on page 7-7 of the VLN determine Activity based year 2 accumulated depreciation________ 2. Following the depreciation example on page 7-7 of the VLN, determine Activity based Year 2 Book value__________
Partial-year depreciation Equipment acquired at a cost of $110,000 has an estimated residual value of $7,000 and an estimated useful life of 10 years. It was placed into service on May 1 of t current fiscal year, which ends on December 31. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Round your answers to the nearest dollar. Year 1 Year 2 Year 1 Depreciation Year 2 $ b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Do not round the double-declin balance rate. Round your answers to the nearest dollar. Depreciation $ Incorrect $
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QUESTION 7 In computing depreciation, salvage value is a. the fair value of a plant asset on the date of acquisition. b. subtracted from accumulated depreciation to determine the plant asset's depreciable cost. C. an estimate of a plant asset's value at the end of its useful life. d. ignored in all the depreciation methods.
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Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?
a fired aseet, uch ata computer, was purchaed un lanuary 1 for $1.419 wth an estimaned e aand a salvage or reiduv S11. e ouma ry tur the mat egenunder ti d OAcomlated Depredation Depredation Epene 212.57 212.57 Depredation Expense Accumulated Depreciation 1721 O Aocumulated Depredation 17.71 Deprecianion Expense 17.71 O Depredation Epense 212.57 Accumulatad Depredation 212.5
Pharoah Company purchases equipment on January 1, Year 1, at a cost of $267,000. The asset is expected to have a service life of 5 years and a salvage value of $20,000.
Accumulated Depreciation account had a balance of R.O 84,0 had been recorded The company should recognize a Select one O a. RO.56,000 loss on disposal. O bRO.140,0oo loss on disposal. O CRO35.0oo loss on disposal. d. RO 56,000 gain on disposal.
complete the double declining method of depreciation for the open blanks based on the given values