Required information[The following information applies to the questions displayed below.]Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company hasmore than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for$27,000. Movelt had originally purchased the vehicle and recorded it in the Truck account for $45,000 and had recordeddepreciation for three years.2. Using the following structure, indicate the effects (accounts, amounts, and + for increase and - for decrease) of the disposal of thetruck, assuming Accumulated Depreciation-Truck was (a) $18,000, (b) $12,000, and (c) $21,000. (Enter any decreases to Assets,Liabilities, or Stockholders' Equity with a minus sign.)(a)(a)(a)(b)(b)(b)(c)(c)(c)Assets====Liabilities+Stockholders' Equity+++++++=++

Part 2: Explanation:Step 1: Calculate Book ValueThe book value of the truck is calculated as the…

Answered: Required information [The following…

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 [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $261,000 including installation. The company estimates that the equipment will have a residual value of $27,000. 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: 7 Year 1 2 Year 1 2 3 4 5 6 Hours Used 2,800 1,400 1,500 2,500 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.) 2,300 1,500 UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value
Required information E9-11 (Algo) Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5] [The following information applies to the questions displayed below.] OnTime Packaging is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that OnTime sold a delivery truck for $22,000. OnTime had originally purchased the vehicle and recorded it in the Truck account for $37,000 and had recorded depreciation for three years. E9-11 (Algo) Part 4 4. Prepare the journal entry to record the disposal of the truck, assuming Accumulated Depreciation--Truck was (a) $15,000, (b) $13,000, and (c) $21,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction General Journal 1 Cash Truck Accumulated Depreciation-Truck Debit Credit 22,000 37,000 15,000 2 b Cash 22,000 Accumulated…
Sh12
Required information [The following information applies to the questions displayed below.] Super Saver Groceries purchased store equipment for $40,000. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $3,000. During the 10-year period, the company expects to use the equipment for a total of 10,000 hours. Super Saver used the equipment for 1,200 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. Depreciation expense
es Required information. [The following information applies to the questions displayed below.] Bridge City Consulting bought a building and the land on which it is located for $135,000 cash. The land is estimated to represent 50 percent of the purchase price. The company paid $6,000 for building renovations before it was ready for use. 3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $4,000 estimated residual value. (Do not round intermediate calculations.) 4. What should be the book value of (a) the land and (b) the building at the end of year 2? Straight-Line Depreciation 3 4(a) Land 4(b) Building
Required information [The following information applies to the questions displayed below.] Super Saver Groceries purchased store equipment for $40,000. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $3,000. During the 10-year period, the company expects to use the equipment for a total of 10,000 hours. Super Saver used the equipment for 1,200 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) 3. Activity-based. Depreciation expense
! Required information [The following information applies to the questions displayed below.] Exact Photo Service purchased a new color printer at the beginning of Year 1 for $36,110. The printer is expected to have a four-year useful life and a $3,800 salvage value. The expected print production is estimated at $1,781,500 pages. Actual print production for the four years was as follows: Year 1 Year 2 Year 3 Year 4 Total 550,700 481,800 376,300 394,700 1,803,500 The printer was sold at the end of Year 4 for $4,100. Required: a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Year 1 Year 2 Year 3 Year 4 Total accumulated depreciation Depreciation Expense
! Required information [The following information applies to the questions displayed below.] Faucet Landscaping purchased a tractor at a cost of $31,000 and sold it three years later for $16,700. Faucet recorded depreciation using the straight-line method, a five-year service life, and a $4,000 residual value. Tractors are included in the Equipment account. 2. Assume the tractor was sold for $10,900 instead of $16,700. 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 View journal entry worksheet No Transaction 1 1 Cash General Journal Debit Credit 10.900
! Required information [The following information applies to the questions displayed below.] VQT Companies is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that VQT sold a delivery truck for $29,000. VQT had originally purchased the vehicle and recorded it in the Truck account for $49,000 and had recorded depreciation for three years. 4. Prepare the journal entry to record the disposal of the truck, assuming Accumulated Depreciation--Truck was (a) $20,000, (b) $17,000, and (c) $25,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
9. Newson's Courier Service recently purchased a new delivery van for $29,000. The van is estimated to have a useful life of 8 years or 250,000 kilometres. The van will have a residual value of $1,000. The company uses the units-of- production method of depreciation. Assuming the van travelled 36,000 kms. during the first year, what is the depreciation expense for the van in year 1? A. $3,625 B. $3,500 C. $4,032 D. $4,176
None
1. Assume Trois Cuisines Manufacturing bought three machines in a $100,000 lump-sum purchase. An independent appraiser valued the machines as follows: (1) Trois Cuisines paid one-third in cash and signed a note payable for the remainder. What is each machine’s individual cost? (2) Immediately after making this purchase, Trois Cuisines sold machine 2 for its appraised value. What is the result of the sale? Round to three decimal places. The result of the sale a _____ of $_____. Prepare the journal entry to record the sale. Please show all steps.

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