I want to this question answer general Accounting PrintCo uses straight-line depreciation. Assetspurchased between the 1st and 15th of the month aredepreciated for the entire month; assets purchasedafter the 15th are depreciated starting the followingmonth. On July 25, 20X1, PrintCo purchasesequipment for $24,000 with an expected life of 4 yearsand residual value of $4,000. Calculate the 20X1depreciation expense.

Step 1: Define Straight-Line DepreciationStraight-Line Depreciation is a method of allocating the…

Answered: PrintCo uses straight-line…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1CP

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Assume that equipment is purchased at a cost of $10,000 with no residual value and isdepreciated at a straight line rate of 10%.The equipment was sold for cash on Oct 12 ofthe eighth year of its use. The balance of accumulated depreciation account as of thepreceding Dec 31 (end of 7th yr) is $7,000.Required:a. Entry to update the depreciation for the 9 months of the current year .b. Assuming that the equipment was sold for $ 2,800 on Oct 12, determine the gain orloss on the sale of equipment.c. Journalize the entry to record the sale.Hint: calculate book value of the equipment as on oct 12 and compare with the amount of cash gettingin return.
An asset is purchased for P9,000.00. Its estimated economic life is 10 years after which it will be sold for P1,000.00. Find the depreciation in the first three years using straight line method.
an assets book value is 19,400 on Dec 31, year 5. The asset has been depreciated at an annual rate of 4,400 on the straight-line method. assuming the asset is sold on Dec 31 year 5 for 16,400 the company should record?
Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending 12/31/X7. Required: In the general journal below, complete the year-end entry to record depreciation. Debit Credit Dec 31 ? 40,000 ? 40,000
Salo Enterprise which makes up its accounts to 30 June each year, has two types of fixed assets namely Motor vehicles and Office equipment. Annual depreciation on Motor vehicles is calculated at the rate of 20% per annum on book value. Provision for depreciation is to be made on the basis of one month's ownership, one month's provision for depreciation. Depreciation on office equipment is calculated at the rate of 15 % per annum on cost, based on assets in existence at the end of the year. On 30 June 1999, the following information has been extracted from the Balance Sheet of Salo Enterprise. Fixed assets Motor vehicles Office equipment Cost (RM) 280,000 143,000 Net Book Value (RM) 108,000 78,000 On 1 October 1999, the business bought a second hand car from a friend for RM28.000. The car was sent for repairs and the repair cost amounted to RM2,300. An air conditioning unit was also installed in the car at a cost of RM1000. The business bought two photocopying machines on 1 February…
ABC, whose reporting period is the 12 months ended 31 December, has charged depreciation monthly at the rate of 10% per annum on cost on an item of plant bought on 1 September 20X0 costing £30,000. The depreciation method was changed from straight line to 10% reducing balance at the end of 20X3. The depreciation charge on this asset for 20X5 was:
ory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,300 annually, after deducting all expenses except depreciation. Calculate annual depreciation expenses using double-declining-balance method.Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming double-declining-balance depreciation.
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whirlpool Company purchases equipment on January 1, Year 1, at a cost of $534,000. The asset is expected to have a service life of 12 years and a salvage value of $48,060. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to 0 decimal places, e.g. 5,125.) Depreciation for Year 1 $enter a dollar amount rounded to 0 decimal places Depreciation for Year 2 $enter a dollar amount rounded to 0 decimal places Depreciation for Year 3 $enter a dollar amount rounded to 0 decimal places
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