Sarasota Company sells equipment on September 30, 2022, for $20,600 cash. The equipment originally cost $73,300 and as of January 1, 2022, had accumulated depreciation of $42,100. Depreciation for the first 9 months of 2022 is $4,750. Prepare the journal entries to (a) update depreciation to September 30, 2022, and (b) record the sale of the equipment. (List all de entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry required, select "No Entry" for the account titles and enter O for the amounts.)
Q: Ike issues $180,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually…
A: “Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: Davidson was transferred from Chicago to Atlanta. In connection with the transfer, Davidson incurred…
A: The moving expenses deduction is a tax benefit that allows eligible individuals to deduct certain…
Q: Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has…
A: The high-low method is the method used to separate the fixed and variable costs from the mixed costs…
Q: TB Problem Qu. 9-426 Mcinerney Jeep Tours operates jeep tours... Mcinemey Jeep Tours operates jeep…
A: Answer:- Flexible budget meaning:- Budgets that are flexible can be changed to account for predicted…
Q: Blue Corporation Comparative Account Information Relating to Operations For the Year Ended December…
A: Cash flows statement is one of the financial statement being prepared in business. It shows all cash…
Q: iv) Calculate Calculate v) vi) Calculate the cash flow from assets net capital spending change in…
A: Since you have posted a question with multiple sub parts, we will be able to provide the solution…
Q: Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…
Q: Bramble Inc. is considering the following alternatives: Alternative 1 Alternative 2 $119000 65100…
A: Variable cost means the cost which vary with the level of output which means that variable cost…
Q: Aloha Company reported the following year-end information: Beginning work in process inventory…
A: Cost of goods manufactured means the amount of cost incurred by the entity for the purpose of making…
Q: The net income reported on the income statement for the current year was $287,618. Depreciation…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution…
A: Degree of operating leverage( DOL) :— It is calculated by dividing total contribution margin by net…
Q: The following information was extracted from the accounting records of Hilton Manufacturers for the…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: In early December, Alice and Bob decided to open the Sample Cafe with $15,000 of their own money and…
A: Balancesheet is otherwise known positional statement of the company. It shows financial position of…
Q: Contribution margin and contribution margin ratio For a recent year, McDonald’s (MCD) company-owned…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: Fill in the amortization schedule below for a $10,000 debt that is to be amortized in six equal…
A: An amortized loan is a form of loan that is set up so that the interest and a portion of the…
Q: Elm Corporation is a merchandising company. The year began with inventory of $19.000, Purchases for…
A: Cost of Goods Sold is the value of direct cost incurred in the production of goods or services that…
Q: Red, Blue, and Green formed a partnership on January 1, 2020, and made capital contributions of…
A: Lets understand the basics.Partnership is a agreement between two or more person who works together…
Q: Current Attempt in Progress Leon's Lawn Equipment sells high-quality lawn mowers and offers a 3-year…
A: A liability account that details the expected sum that a business will have to pay to fix or replace…
Q: Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur…
A: Answer:- Investment interest expense refers to the sum value of interest paid regarding a loan by an…
Q: The following information was extracted from the accounting records of Hilton Manufacturers for the…
A: The income statement can be prepared using various methods as variable and absorption costing. Net…
Q: An owner makes an investment of cash into the business. Such a transaction would include a: Select…
A: The journal entries are prepared to record the transactions on regular basis. The assets and…
Q: Cahuilla Corporation predicts the following sales in units for the coming four months: April May…
A: Budget:We prepare budgets for the future based on data available at present, Some of the budgets…
Q: Determine the company's gross profit rate and profit margin for both years.
A: The income statement is a financial statement which shows the gross profit and net profit of a…
Q: Dollars $20,000 $15,000 $10,000 $5,000 $0 1. Break-even point 2. Total sales line 3. Loss area 4.…
A: Breakeven is the point at which an entity is in a situation of no profit and no loss. At this point,…
Q: Bouwens Corporation manufactures a solvent used in airplane maintenance shops. Bouwens sells the…
A: A costing system is made to keep track of a company's expenses. The system is made up of a number of…
Q: Purse Corporation owns 70 percent of Scarf Company's voting shares. On January 1, 20X3, Scarf sold…
A: According to the question given, we need to prepare the journal entries.Journal entries:A journal…
Q: Determining supplies purchased The supplies and supplies expense accounts at December 31, after…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Jan 1. Balances from 2021 – Cash $400,000; Accounts Receivable $250,000; Supplies $205,000;…
A: The entries passed at the end of the accounting period to nullify the temporary accounts. The…
Q: CW Ltd. had the following balance sheets at 31 December 2006 and 2007. ASSETS 2007 R Patents Land…
A: A Statement of Cash Flow is a statement that includes the inflow and outflow of cash that takes…
Q: Prepare a classified balance sheet at December 31 for wson Consulting using the information of…
A: The balance sheet represents the financial position of the business with assets and liabilities and…
Q: Plum Corporation paid $700,000 for a 40% interest in Satin Company on January 1, 2013 when Satin's…
A: Investment means the amount invested in any other business and will be carried at cost price.
Q: Insurance: You are still not done allocating your paycheck. Assume that you pay annually 0.5% of…
A: It is an agreement between the insurance company and the policyholder where the policyholder pays…
Q: Annin Laboratories uses the FIFO method to account for its work-in-process inventories. The…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: 1. Which financial statement reports a company's financial position at a specific point in time? a)…
A: Lets understand the basics.Financial statements are written reports that provide information about a…
Q: Find the EAR in each of the following cases: (Use 365 days a year. Do not round intermediate…
A: The effective annual rate is referred to as that rate which is actually earned on investment after…
Q: Requir [The following information applies to the questions displayed below.] Tree Seedlings has the…
A: LIFO means last in first out where as FIFO means first in first out.Inventory and cost of goods sold…
Q: Required information Exercise 9-14 (Static) Record bonds issued at a discount and related semiannual…
A: When the contract rate of interest is less than the market rate of interest, the bonds are said to…
Q: H. Banks Company would like to design, produce, and sell versatile toasters for the home kitchen…
A: Desired Profit:The amount of profit that is added to the cost of any product or service as markup is…
Q: Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Sarjit Systems sold software to a customer for $80,000. As part of the contract, Sarjit promises to…
A: Financial statements are those statements which are prepared at the end of accounting period. The…
Q: ompanies allocate costs? What are some of th
A: The process by which a firm allocates and assigns its different expenses or costs to certain goods,…
Q: [The following information applies to the questions displayed below] Del Gato Clinic's cash account…
A: Bank reconciliation statement is the one which is prepared by the entity for the purpose of…
Q: United Snack Company sells 50-pound bags of peanuts to university dormitories for $44 a bag. The…
A: Hi studentSince there are multiple subparts asked, we will answer only first three…
Q: Alaska Inc. is an accrual-basis C corporation that was incorporated on January 1, Year 1. At the end…
A: It is the measure of a company’s ability to pay dividends to its shareholders. The current year’s…
Q: Iton Books buys books and magazines directly from publishers and distributes them to grocery ste…
A: A Schedule of Cash Payment for Inventory Purchases is a financial projection or plan that describes…
Q: 25. Rowdy Bolton began Bolton Office Services in October 2017 and during that month completed these…
A: The journal entries are prepared to record the transactions on regular basis. The T-accounts are…
Q: Which of the following would most likely use a job order costing system? O a. swimming pool…
A: Job Order Costing is a method of cost accounting, which is adopted by the business organizations…
Q: Required information [The following information applies to the questions displayed below.] The Sky…
A: The retained earnings are adjusted for net income and dividend before posting the balance to balance…
Q: Bhekizizwe received the right to use of a company owned vehicle for the first time on 30 April 2022…
A: The determined value of the vehicle is calculated as a percentage of its actual retail market value,…
Q: Dollar Tree, Inc. Common Size Income Statement Total revenue Cost of sales Selling, general and…
A: Common size statements are used for the analysis of financial statements. The Common Size Income…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.
- Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for 1,500 each. The company uses group depreciation on a straight-line basis. Required: 1. Prepare journal entries to record the acquisition and the first years depreciation expense. 2. If one of the cars is sold at the beginning of the second year for 7,000, what journal entry is required?Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
- Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
- Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar Corporation purchased a machine for 50,000. Lapar paid shipping expenses of 500, as well as installation costs of 1,200. The company estimated that the machine would have a useful life of 10 years and a residual value of 3,000. On January 1, 2020, Lapar made additions costing 3,600 to the machine in order to comply with pollution-control ordinances. These additions neither prolonged the life of the machine nor increased the residual value. Required: 1. If Lapar records depreciation expense under the straight-line method, how much is the depreciation expense for 2020? 2. Assume Lapar determines the machine has three significant components as shown below. If Lapar uses IFRS, what is the amount of depreciation expense that would be recorded?At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.