Presented below is information related to equipment owned by Metlock Company at December 31, 2020. Cost   $9,900,000 Accumulated depreciation to date   1,100,000 Expected future net cash flows   7,700,000 Fair value   5,280,000 Assume that Metlock will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.           Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the transaction on December 31, 2017   enter a debit amount   enter a credit amount     enter an account title to record the transaction on December 31, 2017   enter a debit amount   enter a credit amount       LINK TO TEXT LINK TO VIDEO       Prepare the journal entry to record depreciation expense for 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title   enter a debit amount   enter a credit amount   enter an account title   enter a debit amount   enter a credit amount       LINK TO TEXT LINK TO VIDEO       The fair value of the equipment at December 31, 2021, is $5,610,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the transaction on December 31, 2018   enter a debit amount   enter a credit amount     enter an account title to record the transaction on December 31, 2018   enter a debit amount   enter a credit amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
Presented below is information related to equipment owned by Metlock Company at December 31, 2020.

Cost   $9,900,000
Accumulated depreciation to date   1,100,000
Expected future net cash flows   7,700,000
Fair value   5,280,000

Assume that Metlock will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.
 
 
 
 
 
Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31
enter an account title to record the transaction on December 31, 2017
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record the transaction on December 31, 2017
 
enter a debit amount
 
enter a credit amount
 
 
 

LINK TO TEXT
LINK TO VIDEO
 
 
 
Prepare the journal entry to record depreciation expense for 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
enter an account title
 
enter a debit amount
 
enter a credit amount
 
enter an account title
 
enter a debit amount
 
enter a credit amount
 
 
 

LINK TO TEXT
LINK TO VIDEO
 
 
 
The fair value of the equipment at December 31, 2021, is $5,610,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31
enter an account title to record the transaction on December 31, 2018
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record the transaction on December 31, 2018
 
enter a debit amount
 
enter a credit amount
 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education