Sherwin Company uses straight line depreciation for its property, plant, and equipment, which, stated atcost, consisted of the following:20222021Land250,000250,000Buildings1,950,0001,950,0006,500,0008,700,000Machinery and equipment6,950,0009,150,000TotalLess: Accumulated depreciation4.000.0005,150,0003.700,0005,000,000The depreciation for 2022 and 2021 was P550,000 and P500,000, respectively. What amount wasdebited to accumulated depreciation during 2022 because of property, plant, and equipment retirements?

Depreciation is an expense, charged against the value of fixed assets. It can be calculated using…

Sherwin Company uses straight line depreciation for its property, plant, and equipment, which, stated at cost, consisted of the following: 2022 2021 Land 250,000 250,000 Buildings Machinery and equipment Total 1,950,000 1,950,000 6,950,000 9,150,000 6,500,000 8,700,000 4.000.000 5.150,000 Less: Accumulated depreciation 3,700,000 5,000,000 The depreciation for 2022 and 2021 was P550,000 and P500,000, respectively. What amount was debited to accumulated depreciation during 2022 because of property, plant, and equipment retirements?

Sherwin Company uses straight line depreciation for its property, plant, and equipment, which, stated at cost, consisted of the following: 2022 2021 Land 250,000 250,000 Buildings Machinery and equipment Total 1,950,000 1,950,000 6,950,000 9,150,000 6,500,000 8,700,000 4.000.000 5.150,000 Less: Accumulated depreciation 3,700,000 5,000,000 The depreciation for 2022 and 2021 was P550,000 and P500,000, respectively. What amount was debited to accumulated depreciation during 2022 because of property, plant, and equipment retirements?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hadley Zavis Inc. started its unicycle manufacturing business in 2020 and acquired $600,000 of equipment at the beginning of 2020. It decided to use the double-declining balance (DDB) depreciation on its equipment with no residual value and a 10-year useful life. In 2022 it changed to the straight-line depreciation method. Depreciation computed for 2020-2021 is presented below: Year DDB 2020 $120,000 2021 96,000 In 2022, what would Harley Davis report for depreciation expense?
Ghu
Bruce Company acquired a machinery on April 1, 2020. Cost P 1,200,000 Residual Value P 120,000 Estimated Useful Life 8 years What is the depreciation for 2020 using straight line depreciation? A. P150,000 B. P101,250 C. P112,500 D. P125,000 What is the carrying amount of the machinery on December 31, 2022 using straight line depreciation? A. P750,000 B. P817,500 C. P828,750 D. P780,000
sa
Denger
4. On July 1, 2024, TSK Inc. acquired an equipment for P2,200,000 with residual value of P200,000. The equipment has a useful life of 4 years. TSK's policies is to use Sum-Of-The-Years Digit Method in computing depreciation expenses and to account its property, plant and equipment using Cost Model. What is the depreciation expense of the equipment for the year ended December 31, 2026?
3)On November 1, 2021, Ning Corp places a new asset into service. The cost of the asset is $65,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Ning Corp uses the straight-line method of depreciation? a)$9,000 b)$16,000 c)$2,667 d)$4,000
On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,070,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Land Building Equipment Vehicles Total Cost $ 135,000 570,000 170,000 195,000 $ 1,070,000 Estimated Residual Value N/A none 12% of cost $ 15,000 Estimated Useful Life (in years) N/A 20 On June 29, 2025, equipment included in the March 31, 2024, purchase that cost $107,000 was sold for $87,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required 1 Required 2 Required 3 Building 8 Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024. 2. Prepare the journal entries to record the depreciation on the equipment sold on…
On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $900,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Land Building Equipment Vehicles Total Cost $ 150,000 400,000 200,000 150,000 $ 900,000 Estimated Residual Value N/A none 12% of cost $ 15,000 Estimated Useful Life (in years) N/A 25 On June 29, 2025, equipment included in the March 31, 2024, purchase that cost $90,000 was sold for $70,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required 1 Required 2 Required 3 Building Equipment Vehicles Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2024. 2. Prepare the journal entries to record the depreciation on the…
On March 31, 2021, Company A purchased a manufacturing facility along with vehicles and other equipment. The distribution of the total purchase price of $1,500,000 to the various types of assets, along with the estimated useful lives and residual values is as follows: The purchase on March 31, 2021 included equipment at the purchase cost of $150,000. The company sold equipment for $120,000 on June 29, 2022. Company A uses the following depreciation methods: straight-line depreciation method for buildings and equipment double-declining-balance method for vehicles Company A calculates partial-year depreciation based on the number of months an asset is in service. Company A Asset & Cost Land $150,000 Building $750,000 Equipment $360,000 Vehicles $240,000 Total $1,500,000 On June 29, 2022, equipment inculded in the March 31, 2021, purchase that cost $150,000 and was sold for $120,000. Company A uses the straight line depreciation method for buildings and equipment and the…
In January 2020, Company A leased a mineral mine for $3,550.000 with removable estimated geological at 2,500,00 tons Company A incurred $1,150,000 of intangible development costs preparing the property for the extraction of ore. The present value of the cost of the mine estimated to be $250,000. During 2020. 340,000 tons were removed 300.000 tons were sold inventory/depletion balance on December 31, 2020 after the all the sales for the year are recorded will be: $91,120 $86,200 $79,200 $87,800
hrl.8