Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $7,600. The estimated useful life was four years, and the residual value was $800. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,600 hours in year 1; 2,800 hours in year 2; 1,900 hours in year 3; and 1,700 hours in year 4. Required: 1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) × Answer is complete but not entirely correct. Year Depreciation Expense Accumulated Depreciation Carrying Amount At acquisition 7,600 1 $ 1,700 $ 1,700 5,900 2 1,700 → 3,400 4,200 3 1,700 5,100 ✔ 2,500 4 2,500 x 1,700 x 800 1-b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) Answer is complete and correct. Year Depreciation Expense Accumulated Depreciation Carrying Amount At acquisition $ 7,600 1 S 2,448 $ 2,448 5,152 2 1,904 ✔ 4,352 3,248 3 4 1,292 1,158 5,844 1,956 6,800 → 800 1-c. Complete a separate depreciation schedule by using Double-declining-balance method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) × Answer is complete but not entirely correct. Accumulated Depreciation Year Depreciation Expense Carrying Amount At acquisition $ 7,600 1 $ 234 3,800 1,900 $ 3,800 5,700 3,800 1,900 1,100 x 6,800 x 800 x 4 0 x 6,800 800 Rungano Corporation is a global publisher of magazines, books, and music, as well as video collections, and it is one of the world's leading direct-mail marketers. Many direct-mail marketers use high-speed Didde press equipment to print their advertisements. These presses can cost more than $1 million. Assume that Rungano owns a Didde press acquired at an original cost of $400,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $50,000 estimated residual value. At the end of 2024, the press had been depreciated for eight years. On April 1, 2025, a decision was made, on the basis of improved maintenance procedures, that a total estimated useful life of 25 years and a residual value of $73,000 would be more realistic. The fiscal year ends December 31. Required: 1-a. Compute the amount of depreciation expense recorded in 2024. Answer is complete and correct. Depreciation expense $17,500 1-b. Compute the carrying amount of the printing press at the end of 2024. Answer is complete and correct. Carrying amount 260,000 2. Compute the amount of depreciation that should be recorded in 2025. × Answer is complete but not entirely correct. Depreciation expense 11,000 3. Prepare the adjusting entry to record depreciation expense at December 31, 2025. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) × Answer is complete but not entirely correct. No date General Journal 1 December 31, 20 Depreciation expense Accumulated depreciation Debit Credit 11,000 x 11,000 x

Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $7,600. The estimated useful life was four years, and the residual value was $800. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,600 hours in year 1; 2,800 hours in year 2; 1,900 hours in year 3; and 1,700 hours in year 4. Required: 1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) × Answer is complete but not entirely correct. Year Depreciation Expense Accumulated Depreciation Carrying Amount At acquisition 7,600 1 $ 1,700 $ 1,700 5,900 2 1,700 → 3,400 4,200 3 1,700 5,100 ✔ 2,500 4 2,500 x 1,700 x 800 1-b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) Answer is complete and correct. Year Depreciation Expense Accumulated Depreciation Carrying Amount At acquisition $ 7,600 1 S 2,448 $ 2,448 5,152 2 1,904 ✔ 4,352 3,248 3 4 1,292 1,158 5,844 1,956 6,800 → 800 1-c. Complete a separate depreciation schedule by using Double-declining-balance method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) × Answer is complete but not entirely correct. Accumulated Depreciation Year Depreciation Expense Carrying Amount At acquisition $ 7,600 1 $ 234 3,800 1,900 $ 3,800 5,700 3,800 1,900 1,100 x 6,800 x 800 x 4 0 x 6,800 800 Rungano Corporation is a global publisher of magazines, books, and music, as well as video collections, and it is one of the world's leading direct-mail marketers. Many direct-mail marketers use high-speed Didde press equipment to print their advertisements. These presses can cost more than $1 million. Assume that Rungano owns a Didde press acquired at an original cost of $400,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $50,000 estimated residual value. At the end of 2024, the press had been depreciated for eight years. On April 1, 2025, a decision was made, on the basis of improved maintenance procedures, that a total estimated useful life of 25 years and a residual value of $73,000 would be more realistic. The fiscal year ends December 31. Required: 1-a. Compute the amount of depreciation expense recorded in 2024. Answer is complete and correct. Depreciation expense $17,500 1-b. Compute the carrying amount of the printing press at the end of 2024. Answer is complete and correct. Carrying amount 260,000 2. Compute the amount of depreciation that should be recorded in 2025. × Answer is complete but not entirely correct. Depreciation expense 11,000 3. Prepare the adjusting entry to record depreciation expense at December 31, 2025. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) × Answer is complete but not entirely correct. No date General Journal 1 December 31, 20 Depreciation expense Accumulated depreciation Debit Credit 11,000 x 11,000 x

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 1A: TruGreen is the worlds largest lawn and landscape company, employing over 10,000 employees and...

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Related questions

Question

Q1:

Wyatt Company had three intangible assets at the end of 2024 (end of the fiscal year):

Computer software and Web development technology purchased on January 1, 2024, for $70,000. The technology is expected to have a useful life of four years.

A patent purchased from R. Jay on January 1, 2024 for a cash cost of $6,000. Jay had registered the patent with the Canadian Intellectual Property Office seven years earlier on January 1, 2017. The cost of the patent is amortized over its legal life.

A trademark that was internally developed and registered with the Canadian government for $13,000 on November 1, 2023. Management decided that the trademark has an indefinite life.

Required:

1. What is the acquisition cost of each intangible asset?

tech 70k

patent 6k

trademark 13k

2. Compute the amortization of each intangible asset at December 31, 2024. The company does not use contra accounts. (Round the final answers to the nearest whole dollar.)

tech 17.5k

patent: ????

3-a. Compute the amount of amortization on the statement of earnings for 2024. (Round the intermediate calculations to nearest dollar amount.)

amount of amortization: ????

3-b. Show how these assets and any related expenses should be reported on the statement of financial position at December 31, 2024. (Round the intermediate calculations to nearest dollar amount.)

technology net: 52.5k

patent, net: ????

trademark: 13k

Q2:

During the current year, Fortini Company disposed of three different assets. The company’s accounts reflected the following on January 1 of the current years, prior to the disposal of the assets:

Asset

Original Cost

Residual Value

Estimated Life

Accumulated Depreciation (straight line)

Machine A

$21k

8 yr

$15750

(7 years)

Machine B

50k

10 yr

36.8k

(8 years)

Machine C

75k

12 yr

60k

(10 years)

The machines were disposed of in the following ways:

Machine A: Sold on January 1 of the current year for $5,000 cash.
Machine B: Sold on April 1 for $10,500; received cash, $2,500, and a note receivable for $8,000, due on March 31 of the following year, plus 6 percent interest.
Machine C: Suffered irreparable damage from an accident on July 2. On July 10, a salvage company removed the machine at no cost. The machine was insured, and $18,000 cash was collected from the insurance company.

Required:

1. Prepare all journal entries related to the disposal of each machine in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round the final answer to nearest whole dollar.)

Apr 1:

Dr cash 2.5k

Dr note recivable 8k

Dr accumulated depreciation, machine B: ???

Dr loss on disposal of machine: ????

Cr equipment, machine b: 50k

Jul 2:

Dr cash 18k

Dr accumulated depreciation, machine C: ???

Dr equipment, machine C: ???

Cr Gain on disposal of machine: ????

Please help me correct the wrong answers. Please answer the "???". Photos will be Q3 and Q4.