!Required information[The following information applies to the questions displayed below.]Manrow Growers, Incorporated, owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts thatare sold to local restaurants and grocery stores. At the beginning of this year, an asset account for the company showedthe following balances:EquipmentAccumulated depreciation through the end of last year$ 362,000168,000During the current year, the following expenditures were incurred for the equipment:Major overhaul of the equipment on January 1 of the current year that improved efficiencyRoutine maintenance and repairs on the equipment$ 45,0008,000The equipment is being depreciated on a straight-line basis over an estimated life of eight years with a $26,000 estimatedresidual value. The annual accounting period ends on December 31.2. Starting at the beginning of the current year, what is the remaining estimated life?Remaining lifeyears

Get the amount of annual depreciation.Equipment 362,000.00 Residual value- 26,000.00 Depreciable…

Answered: ! Required information [The following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PA: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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Required information Skip to question [The following information applies to the questions displayed below.] Manrow Growers, Incorporated, owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of this year, an asset account for the company showed the following balances: Equipment $ 390,000 Accumulated depreciation through the end of last year 218,750 During the current year, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 1 of the current year that improved efficiency $ 59,000 Routine maintenance and repairs on the equipment 9,500 The equipment is being depreciated on a straight-line basis over an estimated life of eight years with a $40,000 estimated residual value. The annual accounting period ends on December 31.
Manrow Growers, Incorporated, owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of this year, an asset account for the company showed the following balances: Equipment Accumulated depreciation through the end of last year $ 386,000 174,000 During the current year, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 1 of the current year that improved efficiency Routine maintenance and repairs on the equipment $ 57,000 8,500 The equipment is being depreciated on a straight-line basis over an estimated life of eight years with a $38,000 estimated residual value. The annual accounting period ends on December 31. 3. Prepare the journal entries to record the two expenditures during the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
A2
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
Recording Subsequent Expenditures The plant building of Xon Corporation is old (estimated remaining useful life is 12 years) and needs continuous maintenance and repairs. The company’s accounts show that the building originally cost $300,000; and accumulated depreciation was $200,000 at the beginning of the current year. During the current year, expenditures relating to the plant building are made. Prepare the journal entry to record each of the following expenditures , assuming all items are paid in cash.Instructions Round your answers to the nearest whole number Record debit accounts in alphabetical order using the first letter of the account name. 1. Continuing, frequent, and low-cost repairs: $17,000 Account Name Dr. Cr. 2. Added a new storage shed attached to the building; estimated useful life of 8 years: $36,000 Account Name Dr. Cr. 3. Removed roof with original cost, $40,000; replaced it with…
The following information applies to the questions displayed below.] The following transactions relate to Academy Towing Service. Assume the transactions for the purchase of the wrecker and any capital improvements occur on January 1 of each year. Year 1 Acquired $73,000 cash from the issue of common stock. Purchased a used wrecker for $35,000 cash. It has an estimated useful life of three years and a $6,000 salvage value. Paid sales tax on the wrecker of $4,000. Collected $59,100 in towing fees. Paid $12,300 for gasoline and oil. Recorded straight-line depreciation on the wrecker for Year 1. Closed the revenue and expense accounts to Retained Earnings at the end of Year 1. Year 2 Paid for a tune-up for the wrecker’s engine, $1,200. Bought four new tires, $1,550. Collected $65,000 in towing fees. Paid $18,300 for gasoline and oil. Recorded straight-line depreciation for Year 2. Closed the revenue and expense accounts to Retained Earnings at the end of Year 2. Year 3 Paid to…
Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Western account for each of these expenditures? Capitalize and depreciate over the useful life of the asset. OR Expense in the period incurred. 1. Salaries for the repair technicians, $154,000 2. Remodeling of the executive offices, $84,700 3. Annual maintenance costs related to its machinery, $70,400 4. Improvement of the production line resulting in an increase in productivity, $33,800 5. Addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $37,900
Recording Subsequent Expenditures The plant building of Xon Corporation is old (estimated remaining useful life is 12 years) and needs continuous maintenance and repairs. The company’s accounts show that the building originally cost $300,000; and accumulated depreciation was $200,000 at the beginning of the current year. During the current year, expenditures relating to the plant building are made. Prepare the journal entry to record each of the following expenditures , assuming all items are paid in cash 3. Removed roof with original cost, $40,000; replaced it with guaranteed, modern roof: $50,000 Account Name Dr. Cr. Accumulated Depreciation ? 0 Loss on Replacement ? 0 Building 0 40,000 To remove old roof. Building 50,000 0 Cash 0 50,000 To record new roof.
! Required information [The following information applies to the questions displayed below.] Cash As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units (recorded as Equipment) that were 10 years old for $800 cash. The shelves originally cost $6,400 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $400. Required: 1. Complete the table below, indicating the account, amount, and direction of the effect on disposal. Assume that depreciation has been recorded to the date of sale. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not round intermediate calculations.) Assets 800 Liabilities Stockholders' Equity
Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $228,000 including installation. The company estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: Year 1 2 3 4 56 Year 1 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) Total 23456 Hours Used 3,000 1,700 1,800 2,200 2,000 1,300 S UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense 0 Accumulated Depreciation Book Value

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