Question No: 1E10-9 Presented below are selected transactions at Ridge Company for 2017. Jan. I Retired a piece ofmachinery that was purchased on January 1, 2007. The machine cost $62,000 on that date. It had a usefullife of 10 years with no salvage value.June 30 Sold a computer that was purchased on January 1, 2014. The computer cost $45,000. It had auseful life of 5 years with no salvage value. The computer was sold for $14,000.Dec. 31 Discarded a delivery truck that was purchased on January 1, 2013. The truck cost $33,000. Itwas depreciated based on a 6-year useful life with a $3,000 salvage value.InstructionsJournalize all entries required on the above dates, including entries to update depreciation, whereapplicable, on assets disposed of. Ridge Company uses straight-line depreciation. (Assume depreciationis up to date as of December 31, 2016.)

Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Answered: Question No: 1 E10-9 Presented below…

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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Bart Company purchased equipment on January 1, 2016, at a total cost of $400,000. The equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. If the straight-line method of depreciation is used, the amount of accumulated depreciation at December 31, 2017, is: Select one: a. $156,000. b. $78,000. c. $80,000 d. $160,000 e. The answer does not exist
Here are selected 2022 transactions of Sheffield Company. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $64,400 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2019. The computer cost $43,700 and had a useful life of 5 years with no salvage value. The computer was sold for $13,800 cash. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2018. The truck cost $40,380. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Sheffield Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order…
On May 1, 2017 Merron Inc. sold a machine that it no longer had any use for. Merron sold the machine for $2,000 cash. The original cost of the machine was $32,000 and at December 31, 2016 the accumulated depreciation on the machine was $26,000. The machine had an original useful life of 10 years with zero estimated residual value. Merron uses the straight-line method to depreciate all of their machines. Required: Prepare the journal entries required for this transaction.
Here are selected 2022 transactions of Flounder Company. Jan. 1 Retried a piece of machinery that was purchased on January 1, 2012. The machine cost $62,400 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2019. The computer cost $35,500 and had a useful life of 5 years with no salvage value. The computer was sold for $14,100 cash. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2018. The truck cost $36,660. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Flounder Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2021.) (List all debit entries before credit entries)
(Depreciation Computation—Replacement, Nonmonetary Exchange) George Zidek Corporation bought a machine on June 1, 2015, for $31,000, f.o.b. the place of manufacture. Freight to the point where it was set up was $200, and $500 was expended to install it. The machine’s useful life was estimated at 10 years, with a salvage value of $2,500. On June 1, 2016,an essential part of the machine is replaced, at a cost of $1,980, with one designed to reduce the cost of operating the machine. The cost of the old part and related depreciation cannot be determined with any accuracy.On June 1, 2019, the company buys a new machine of greater capacity for $35,000, delivered, trading in the old machine which has a fair value and trade-in allowance of $20,000. To prepare the old machine for removal from the plant cost $75, and expenditures to install the new one were $1,500. It is estimated that the new machine has a useful life of 10 years, with a salvage value of $4,000 at the end of that time. (The…
Cullumber Company had the following assets on January 1, 2022. Item Cost Purchase Date Useful Life(in years) Salvage Value Machinery $83,000 Jan. 1, 2012 10 $ 0 Forklift 42,000 Jan. 1, 2019 5 0 Truck 48,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $13,200. The truck was discarded on December 31.Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. Date Account Titles and Explanation Debit Credit Jan 1 Accumulated Depreciation - Equipment 83000 enter a credit amount Equipment enter a debit amount enter a credit amount June 30 depreciation expense enter a debit amount enter a credit amount enter a debit…
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On January 1, 2016, Rexford Company purchased a drilling machine for $11,500. The machines has an estimated useful life of 4 years and a salvage value of $200. Given this information, if Rexford uses double-declining-balance method of depreciation, and sells the machine on December 31, 2017, for $3,000 cash. Then how much will be gain or loss on disposal of this asset? $ 2,750 loss $ 1,800 loss $1,562 gain $ 125 gain
Here are selected 2022 transactions of Concord Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $61,900 and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2020. The computer cost $35,800 and had a useful life of 4 years with no salvage value. The computer was sold for $4,300 cash. Dec. 31 Sold a delivery truck for $9,450 cash. The truck cost $23,800 when it was purchased on January 1, 2019, and was depreciated based on a 5-year useful life with a $3,300 salvage value. Journalize all entries required on the above dated , including to update depreciation on assets disposed of, where applicable. Use straight-line depreciation.
Zorzi Corporation purchased a Machine on January 1, 2017 for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. Compute the depreciation expense for 2017 using the sume of the years didgets method assuming the machine was purchased on October 1, 2017 O $2,500 O $12.000 O S7.500 O $10,000
Rottino Company purchased a new cutting machine on January 1, 2017, at $17,000, paid in cash. It has been depreciated using the double-declining-balance method based on an estimated salvage value of $0 and an estimated useful life of 5 years. Prepare Rottino Company's journal entries to record the disposal of the machine on October 31, 2018, in these two independent situations (show your calculations to prove the result): Requirement: (i) Sold the machine for $7.600 cash. (ii) Exchange the old cutting machine with cash of $1,000 for a new cutting machine. The old machine had a fair value of $7,000.
ABC Company acquired a machine on January 1, year 2016 for $100,000. The machine is depreciated using the double-declining- balance method, and was estimated to have a 10 year useful life and a salvage value of $10,000. On January 1, year 2018, the company revised its estimations as: a useful life of 5 years beginning from that date, and with a salvage value of $15,000 at the end of 5 years. How much depreciation expense should ABC Company recognize in year 2018? Multiple Choice 13,400 O 21,040 25,600 16,000

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