Required: Calculate the annual depreciation for the years ended 31st December 2018, 2019 and 2020. Show the following accounts for the three years Motor vehicles account. Accumulated depreciation account

Required: Calculate the annual depreciation for the years ended 31st December 2018, 2019 and 2020. Show the following accounts for the three years Motor vehicles account. Accumulated depreciation account

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Blossom Company sells office equipment on July 31, 2022, for $23,050 cash. The office equipment…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: El Tapatio purchased restaurant furniture on September 1, 2018, for $35,000 residual value at the…

A: Every fixed asset loses its value over a period of time. Depreciation expense is being recorded on…

Q: Togo’s Sandwiches acquired equipment on April 1, 2021, for $18,000. The company estimates a residual…

A: For the year 2021: 9 months is computed from April to December

Q: Sheffield Corp. sells office equipment on July 31, 2022, for $19,200 cash. The office equipment…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: how to calculate monthly depreciation using the double declining depreciation method. Purchase…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear, and tear. There…

Q: El Tapitio purchased restaurant furniture on September 1, 2021, for $45,000. Residual value at the…

A: Depreciable costs = Cost of asset - Residual value = $45,000 - $6,000 = $39,000.

Q: An equipment was purchased on January 1,2018 for P4,000,000. The equipement has an estimated useful…

A: Depreciation is an expense for the firm against the loss in the value of asset over the period of…

Q: For the first 2 years, calculate the depreciation expense for a $7,500 car. This is a nonluxury car.…

A: Data given: Cost of car=$ 7500 This is a nonluxury car Since automobile is non luxury, class…

Q: Company F purchases a vehicle on January 1st for $50,000. The vehicle has a useful life of 5 years…

A: given that, cost of the vehicle = $50000 the useful life of vehicle = 5years salvage value of…

Q: On October 1, 2019, Jefferson Consulting purchased new computers for $13,820. The computers are…

A: Answer Computation of Depreciation on computer equipments

Q: Presented here are selected transactions for Sandhill Limited for 2024. Sandhill uses straight-line…

A: Journal Entry: It implies the recording and accounting of company's day to day or routine financial…

Q: A machine was bought on 1 July 2017 for $40,000 . The policy is to depreciate the motor van at 20%…

A: Depreciation is the systematic distribution of a tangible asset's purchase price over the course of…

Q: Please answer the following question: Beaver Construction purchases new equipment for $45,360 cash…

A: DEPRECIATION EXPENSE Depreciation means gradual decrease in the value of an asset due to normal wear…

Q: i. The Motor Vehicle Account ii. The Provision for Depreciation Account

A: Property, plant, and equipment: These assets are long lived economic resources which are owned by…

Question

A motor van was bought on 1st January 2018 for $10,000

The policy is to depreciate the motor van at 20% on straight line method

Required:

Calculate the annual depreciation for the years ended 31st December 2018, 2019 and 2020.
Show the following accounts for the three years

Motor vehicles account.
Accumulated depreciation account.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Depreciation:-

VIEW

Step 2: Calculating Depreciation for three years:-

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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

Record the transactions.
Redhouse Corporation purchased a truck for $20,000 on January 1, 2023. The truck has an estimated salvage value of $5,000 and is expected to last five years. Redhouse Corporation prepares adjusting entries only at year-end. Which of the following is the necessary adjusting entry on December 31, 2023? (See your Chapter 3 notes, page 6) Debit Depreciation Expense—Trucks for $4,000, and credit Accumulated Depreciation—Trucks for $4,000. Debit Depreciation Expense—Trucks for $5,000, and credit Accumulated Depreciation—Trucks for $5,000. Debit Accumulated Depreciation—Trucks for $3,000, and credit Depreciation Expense—Trucks for $3,000. Debit Depreciation Expense—Trucks for $3,000, and credit Accumulated Depreciation—Trucks for $3,000. Debit Accumulated Depreciation—Trucks for $4,000, and credit Depreciation Expense—Trucks for $4,000. Debit Accumulated Depreciation—Trucks for $5,000, and credit Depreciation Expense—Trucks for $5,000.
A delivery van costing $35,000 is expected to have a $2,000 salvage value at the end of its useful life of five years. Assume that the truck was purchased on January 1. Compute the annual depreciation expense under the straight‑line depreciation method. (Round your answer to the nearest whole number.)
H1. Account
On January 1, 2018 a machine has a remaining book value of 6500 the residual value of the machine is 1300. The company uses the double declining balance method of depreciation. If 2019 is the last year for depreciation what is the depreciation expense for the year ending in December 31 2019?
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…
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
Presented here are selected transactions for Cullumber Limited for 2024. Cullumber uses straight-line depreciation and records adjusting 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 was depreciated based on a four-year useful life with a $6,290 residual value. Sept. 1 Dec. 30 Sold computers that were purchased on January 1, 2022. They cost $11,628 and had a useful life of three years with 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 of 10 years with no residual value. No proceeds were received. Show Transcribed Text Gain on Disposal Vehicles Assume that, when the delivery truck was sold on January 1, the accountant only recorded a debit to Cash and a credit to Gain on Disposal. Because of this, also assume that the accountant recorded depreciation on this asset for 2024. What…
Tasty Subs acquired a delivery truck on October 1, 2021, for $25,800. The company estimates a residual value of $2,400 and a six- year service life. Required: Calculate depreciation expense using the straight-line method for 2021 and 2022, assuming a December 31 year-end. 2021 2022 Depreciation expense
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of$12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST.Required:a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June.Calculate the depreciation expense for the year 2019–20 using each of the following depreciationmethods (6 marks) straight-line diminishing balance (depreciation rate has been calculated as 31%) units of production (assume the van was driven 78,000 kilometres during the financial year)b) Record the adjusting entries for the depreciation at 30 June 2021 using diminishing balancemethod. c) Show how the van would appear in the balance sheet prepared at the end of year 2 using Straightline method.
On July 1, 2020 ABC Company acquired vehicle costing $750,000. The management estimates that they can use it for 10 years and will be able to sell it at $75,000 at the end of its life Questions:1) Depreciation Expense for 20202) Accumulated Depreciation- December 31,20213) Adjusting Journal Entry on December 31,20204) Book value- December 31,2021
Please help me