Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Shamrock Unlimited bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $9,400 840 720 590 PA9-1 (Algo) Part 4 4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $43,680, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.) Year 2 units-of-production depreciation expense

Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Shamrock Unlimited bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $9,400 840 720 590 PA9-1 (Algo) Part 4 4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $43,680, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.) Year 2 units-of-production depreciation expense

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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! Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Daffodil Company bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for Machine A. Total cost $9,500 850 750 610 $
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Required information [The following information applies to the questions displayed below.] At the beginning of the year, Daffodil Company bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began 6. Compute years 1 and 2 double-declining-balance depreciation expense for Machine C, which has a cost of $26,700, an estimated life of 10 years, and $1,400 residual value. Double-declining-balance Year 1 $10,300 930 990 770 Year 2
Equipment was acquired at the beginning of the year at a cost of $625,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $46,635. a. What was the depreciation for the first year? Round your answer to the nearest cent.$ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $105,608. Round your answer to the nearest cent and enter as a positive amount.$ Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent
In recent years, Blossom Corporation has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Cost Residual Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2025 $86,500 $10,900 5 Straight-line 2 July 1, 2026 77,500 10,590 5 Diminishing-balance 3 Nov. 1, 2026 75,521 6,050 6 Units-of-production For the diminishing-balance method, Blossom Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 25,730. Actual hours of use in the first 3 years were: 2026, 420; 2027, 4,490; and 2028, 4,970. (a) - Your answer is partially correct. Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round…
Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Algernon Companies bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,000 900 900 710 PA9-1 (Algo) Part 3 3. Prepare the journal entry to record year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 and $1,000 residual value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account years field.)
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! Required information [The following information applies to the questions displayed below.] Faucet Landscaping purchased a tractor at a cost of $33,000 and sold it three years later for $16,500. Faucet recorded depreciation using the straight-line method, a five-year service life, and a $2,000 residual value. Tractors are included in the Equipment account. 2. Assume the tractor was sold for $10,300 instead of $16,500. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the sale of tractor. Check
From page 7-2 of the VLN, intangible assets are long term assets and would NOT include: Group of answer choices A. Goodwill B. Natural gas C. Patents D. Copyrights
Required Information P8-3 (Algo) Computing the Acquisition Cost and Recording Depreciation under Three Alternative Methods LO8-2, 8-3 [The following information applies to the questions displayed below.] At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the accounts. Invoice price paid for asset Shipping costs (paid by Plummer) Renovation costs prior to use Machine A Machine B Machine C $12,600 2,000 $34,000 2,200 $9,350 908 4,300 1,000 3,000 By the end of the first year, each machine had been operating 4,900 hours. P8-3 Part 2 2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following. Note: Do not round Intermediate calculations. If no entry is required for a…
During the current year, Yost Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Depreciation Asset Machine A Machine B Original Cost Residual Value Estimated Life $33,000 $3,000 12 years 16,800 10 years Machine C 5,100 17 years 140,000 75,600 (straight line) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,500 cash. $25,000 (10 years) 98,560 (8 years) 49,765 (12 years) b. Machine B: Sold on December 31 for $54,120; received cash, $43,296, and an $10,824 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. P8-5 Part 1 Required: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b.…
Required information (The following information applies to the questions displayed below.] During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Original Residual Estimated Life 8 years 8 years Depreciation (straight line) $20,250 (6 years) 33,750 (6 years) 48,918 (12 years) Asset Cost Value Machine A $ 30,000 $ 3,000 Machine B 49,000 4,000 Machine C 75,500 6,200 17 years The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $9,450 cash. b. Machine B: Sold on December 31 for $10,325; received cash, $2,500, and a $7,825 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. Required: 1. Give all journal entries related…