Presented here are selected transactions for Cullumber Limited for 2024. Cullumber uses straight-line depreciation and recordsadjusting entries annually.Jan.1 Sold a delivery truck for $19.190 cash. The truck cost $67,530 when it was purchased on January 1, 2021, and wasdepreciated based on a four-year useful life with a $6,290 residual value.Sept. 1Dec. 30Sold computers that were purchased on January 1, 2022. They cost $11,628 and had a useful life of three yearswith no residual value. The computers were sold for $540 cash.Retired equipment that was purchased on January 1, 2015. The equipment cost $146,400 and had a useful life of10 years with no residual value. No proceeds were received.Show Transcribed TextGain on DisposalVehiclesAssume that, when the delivery truck was sold on January 1, the accountant only recorded a debit to Cash and a credit to Gain onDisposal. Because of this, also assume that the accountant recorded depreciation on this asset for 2024. What accounts are nowoverstated or understated because of these errors?Accumulated Depreciation-VehiclesDepreciation ExpenseLoss on Disposal300000Ĉ

As per dual concept of accounting, every transaction has dual impact on the books of…

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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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Record the transactions.
don't forget to Select the explanation on the last line of the journal entry table.
Lucky Lure Co. purchased a machine on October 1, 2018 for $125,000. It has a $15,000 residual value and a 10- year useful life. On July 1, 2020 the machine sold for $79,500. The company uses the double-declining-balance method of depreciation. The company fiscal year end is December 31. Instructions Prepare the journal entries for 2018 through 2020. Š A▾ B I
3. Counselors of Mableton purchased equipment on January 1, 2017, for $44,500. Counselors of Mableton expected the equipment to last for eight years and have a residual value of $4,500. Suppose Counselors of Mableton sold the equipment for $25,700 on December 31, 2020, after using the equipment for four full years. Assume depreciation for 2020 has been recorded. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received 25,700 Less: Book value of asset disposed of Cost 44,500 Less: Accumulated Depreciation Gain or (Loss)
White Mountain Supply Company purchases warehouse shelving for $18,500. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 8 years and have a scrap value of $800. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving? $ 2,330.63 (b) What is the accumulated depreciation (in $) after the third year? $ 6,991.89 (c) What is the book value of the shelving (in $) after the fifth year? $ 85,571.85 X
On June 15, 2024, Perfect Furniture discarded equipment that had a cost of $8,000, a residual value of $0, and was fully depreciated. Journalize the disposal of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Jun. 15 Accumulated Depreciation-Equipment Cash Depreciation Expense-Equipment Equipment Gain on Disposal Loss on Disposal Maintenance Expenses Debit Credit
Cheadle Company purchased a fleet of 20 delivery trucks for $8,000 each on January 2, 2019. It decided to use composite depreciation on a straight-line basis and calculated the depreciation from the following schedule: 1. Prepare the journal entries necessary to record the preceding events. 2. Assume that the company expected all the trucks to last 4 years and be retired for $1,600 each. Using group depreciation, prepare journal entries for all 6 years, assuming the company retired the trucks as shown by the latter schedule.
White Mountain Supply Company purchases warehouse shelving for $18,500. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 9 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving? (b) What is the accumulated depreciation (in $) after the third year? (c) What is the book value of the shelving (in $) after the fifth year?
Exact Time Logistics Co. purchased a delivery truck on Jan 02, 2020 for $145,000 and it was estimated that there will have a residual value of $ 15,000 at the end of its life time, which is 10 years. Exact Time Logistics Co depreciates its assets using straightline method. Due to slow down in the business, it sold this truck for $55,000 at the end of seventh year You are required to prepare a) depreciation schedule for the first seven years and b) determine the profit / loss on the sale and prepare the journal entry at the time of sale
Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $10,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Whispering Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) (d) (e) (f) (a) Sold for $59,000 on January 1, 2022. Sold for $59,000 on April 1, 2022. SR. Account Titles and Explanation (b) Sold for $21,000 on January 1, 2022. Sold for $21,000 on September 1, 2022. Repeat (a), assuming Whispering uses double-declining…
Gulfcoast, Inc. purchased a van on January 1, 2019, for $820,000. Estimated life of the van was five years, and its estimated residual value was $91,000. Gulfcoast uses the straight- line method of depreciation. Calculate the book value of the van at the end of 2019. A. $674,200 B. $768,750 C. $729,000 XD. $666,250 ry ces
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