**Question 5**As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc. sold shelving units (recorded as Equipment) that were 10 years old for $1,110 cash. The shelves originally cost $2,377 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $861.When recording the sale, the change to stockholders’ equity will be $_____. (Leave as a positive for increase, enter as – for a decrease. Example: increase of 41,000, enter as 1,000, decrease of $1.00 enter as -1,000.)

Gain/ loss on sale of assets impacts the stockholders equity. Therefore, in the immediate case, it…

Answered: QUESTION 5 As part of a major…

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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Question 3It is now March 31, 2008, and you are contemplating the disposal of an old piece of equipment. The equipment cost $36,000 and has accumulated depreciation of $20,000 at December 31 of the prior calendar year-end. The equipment is being depreciated over 10 years down to a residue of $6,000Record the sale of the equipment at March 31, 2008 assuming:a) The equipment is discardedb) The equipment is sold for $6,000, $10,000 or $20, 000.c) The equipment is exchanged for new, similar equipment having a cost of $42,000. Trade-in-Allowance for the old equipment is $18,000.Question 4On January 1, 20X2, The GenKota Winery purchased a new bottling system. The system has an expected life of 5 years. The system cost $325,000. Shipping, installation, and set up were an additional $35,000. At the end of the useful life, Julie Hayes, chief accountant for GenKota, expects to dispose of the bottling system for $26,000. She further anticipates total output of 668,000 bottles over the useful…
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Scenario 2:A warehouse that cost $170,000 with a residual value of $10,000 is being depreciated over 20 years. On January 1, 2015, an additional wing was constructed for $80,000. At the time of the construction, the warehouse was 15 years old. The estimated life of the wing, considered separately from the original warehouse, is 10 years, and $15,000 is its estimated residual value. Record these entries: Assume that the warehouse and addition were sold on December 31, 2016, $147,000 cash. Record the entry for sale if, at the time of sale, the fair value of the original warehouse is $74,000, and the fair value of the addition is $73,000. Assume that the adjusting entries for 2016 have already been completed. Show the amount for gain/loss for the warehouse and addition as separate accounts.
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A Starbucks franchisee purchased a coffee drink machine on January 1 2011 for 44000 The expected useful life is ten years or 100000 drinks In 2010 3000 drinks were sold and in 2011 14000 drinks were sold This volume of drinks were sold in each of the next several years at an equal amount each month Residual value is 4000 Prepare a depreciation table and record journal entries depreciation for 2012 under the following three depreciation methods a unitsofproduction b doubledeclinin
A retail store using sum-of-the-years-digits method of depreciation purchased equipment costing $36,000 and put it in use on June 1. The equipment is expected to have a useful life of 10 years and an estimated resale value of $2,400. Refer to the Retail Store scenario. Compute the book value at the end of the second year. S26,938 O $27,141 O S26,684 S29,084
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Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.) University Car Wash purchased new soap dispensing equipment that cost $219,000 including installation. The company estimates that the equipment will have a residual value of $19,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 Hours Used 2,800 1,400 1,500 2,500 2,300 2,000 4 Problem 7-5A (Algo) Part 1 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of Year Amounts Depreciation Expense Accumulated Depreciation Year Book Value
Revision of Depreciation On January 2, 2012, Mosler, Inc., purchased equipment for $85,000. The equipment was expected to have a $10,000 salvage value at the end of its estimated six-year useful life. Straight-line depreciation has been recorded. Before adjusting the accounts for 2016, Mosler decided that the useful life of the equipment should be extended by three years and the salvage value decreased to $8,000. a. Prepare a journal entry to record depreciation expense on the equipment for 2016. Round your answer to the nearest dollar. Dec. 31 General Journal Debit To record depreciation expense. 0 Credit 0 0 0 b. What is the book value of the equipment at the end of 2016 (after recording the depreciation expense for 2016)? Book Value at year ended December 31, 2016: $ 0

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