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Q: Capital Expenditure and Depreciation
A: Carpet purchased is to be treated as a furniture under the heading of fixed assets.
Q: The estimated amount of depreciation on equipment for the current year is $10,650. Journalize the…
A: At the end of every period, depreciation expense is charged on the depreciable fixed assets in…
Q: Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $113,400…
A:
Q: Determine the total depreciation at the end of the 10th year and the book value at the end of the…
A: The question is based on the concept of Depreciation Accounting. Depreciation is the decrease in the…
Q: Togo's Sandwiches acquired equipment on April 1, 2021, for $16,500. The company estimates a residual…
A: Definition: Straight-line depreciation method: The depreciation method which assumes that the…
Q: Partial-Year Depreciation Equipment acquired at a cost of $100,000 has an estimated residual value…
A: a. Compute depreciation for current fiscal year and for following fiscal year using straight line…
Q: Equipment acquired on January 8 at a cost of $139,100 has an estimated useful life of 16 years, has…
A: Depreciation: Depreciation is defined as a reduction in the value of assets that occurs over time as…
Q: Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Equipment acquired at a cost of $104,000 has an estimated residual value of $6,000 and an estimated…
A: Cost of equipment = $ 104000 Residual value = $ 6000 Depreciable value = Cost-Residual value…
Q: PB7. LO 4.3 Using the following information, A. Make the December 31 adjusting journal entry for…
A: Since the company is following accumulated depreciation approach the Adjustment entry should be as…
Q: The estimated amount of depreciation on equipment for the current year is $8,200.Journalize the…
A: Adjusting entries:Adjusting entries refers to the entries that are made at the end of an accounting…
Q: Equipment acquired on January 6 at a cost of $401,300 has an estimated useful life of 18 years and…
A: Annual depreciation (straight-line method) = (Cost of equipment - Residual value) / Life of the…
Q: Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,000. The…
A: Answer: Given information:
Q: Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $331,200 has an estimated…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Fixed assets…
Q: Determine the machine's second-year depreciation and year end book value under the straight-line…
A: Here's how to determine the second-year depreciation and year-end book value under the straight-line…
Q: If a fixed asset, such as a computer, were purchased on January 1 for $2,027 with an estimated life…
A: The correct answer is: (B) Depreciation Expense $29.67 Accumulated Depreciation $29.67
Q: Purchase Salvage Date Asset Price Useful Life Value Purchased Truck #1 $20,000 8 years $4,000…
A: GIVEN Equipment records for Johnson Machine Co. for the year follow. Johnson Machine uses the…
Q: Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: Following the depreciation example on page 7-6 of the VLN, determine 150% declining balance year 2…
A: Solution Concept Under the 150% declining balance method Depreciation rate =1/ useful…
Q: Equipment acquired on January 6 at a cost of C. Assuming that the equipment was sold on January 3 of…
A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…
Q: Units-of-Activity Depreciation A truck acquired at a cost of $202,800 has an estimated residual…
A: Depreciation per mile = Total cost of Truck - Residual ValueEstimated Useful life
Q: Depreciation by two methods A storage tank acquired at the beginning of the fiscal year at a cost of…
A: A tangible item's cost can be spread out over the period of its useful life using the accounting…
Q: Computing Depreciation Expense for Change in Depreciation Method Phelps Company purchases equipment…
A: Depreciation is reduction in value of asset over the period of time. Under straight line method,…
Q: Impact of Improvements and Replacements on the Calculation of Depreciation 1. Using the…
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Q: Following information provided related to an Equipment: • Book value (beginning of the year) OMR…
A: The Written Down Value (WDV) method is a technique of charging depreciation on an asset. In this…
Q: Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending…
A: Depreciation can be referred to as a decline in the value of assets over the period of its useful…
Q: Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in…
A: Lets understand the basics. Depreciation is reduction in value of asset due to wear and tear,…
Q: Exercise 9-08 On July 1, 2019, Ivanhoe Company purchased new equipment for $90,000. Its estimated…
A: Compute depreciation.
Q: If a fixed asset, such as a computer, were purchased on January 1 for $2,267 with an estimated life…
A: Straight line depreciation : Straight line basis is a method of calculating depreciation. It is…
Q: Revision of Depreciation A truck with a cost of $123,000 has an estimated residual value of…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: Journalize Depreciation of $7,000 for the year.
A: Answer: Depreciation is an accounting technique of allocatiing the value of a tangible or physical…
Q: The estimated amount of depreciation on equipment for the current year is $7,700. Journalize the…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…
Q: Equipment was acquired at the beginning of the year at a cost of $79,680. The equipment was…
A: Depreciation is a reduction of value of asset over a period of time due to wear and tear,…
Q: 1 $82,971 $14,850 252,300 miles 20,200 miles dollar. 59,412 6,150 295,900 miles $13,950 32,900 miles…
A: Solution Concept When the asset is depreciated using the capacity of miles to be driven , Formula to…
Q: If a fixed asset, such as a computer, were purchased on January 1st for $1,533 with an estimated…
A: Annual depreciation-Straight line method = (Cost - Salvage value)/Estimated useful life. Accumulated…
Q: If a fixed asset, such as a computer, were purchased on January 1st for $2,101.00 with an estimated…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,000. The…
A: Depreciation indicates the fall in the historical amount of tangible assets resulting from normal…
Q: Current Attempt in Progress At the end of its first year, the trial balance of Blossom Company shows…
A: As per nominal account rule, all expenses should be debited and incomes should be credited.…
Q: Pinewood Corporation purchased a piece of equipment for S70,000. It estimated an 8-year life and a…
A: Answer 1) Calculation of Depreciation expense as per Original Estimate Annual depreciation expense =…
Q: New lithographic equipment, acquired at a cost of $859,200 on March 1 at the beginning of a fiscal…
A: Annual Depreciation under SLM = (Cost - Salvage value)/Useful lifeAnnual Depreciation under DDB =…
Q: Partial-Year Depreciation Equipment acquired at a cost of $97,000 has an estimated residual value of…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: Swifty Corporation constructed a building at a cost of $13550000. Weighted-average accumulated…
A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…
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- Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $408,000 and the balance in Accumulated Depreciation—Trucks is $126,200. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $86,000 $12,900 200,000 miles — 30,000 miles 2 119,000 14,280 360,000 $23,800 36,000 3 103,000 14,420 212,000 $82,400 21,200 4 100,000 12,000 260,000 $20,000 31,200 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Truck No.…Straight-Line Depreciation A computer was purchased on January 1 at a cost of $3,000. It has an estimated useful life of five years and an estimated salvage value of $300. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the straight-line method.Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $139,100 has an estimated useful life of 16 years, has an estimated residual value of $8,700, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? %$4 Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $98,242. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entrY, leave it blank. Round your answers to the nearest whole dollar if required. Depreciation Expense-Equipment Accumulated Depreciation-Equipmentv Feedback 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank, Do not round intermediate calculations. Cash Accumulated Depreciation-Equipment V Loss on Sale of Equipment y 00 00 000 %24
- Partial-Year Depreciation Equipment acquired at a cost of $48,000 has an estimated residual value of $3,000 and an estimated useful life of 10 years. It was placed in service on October 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 b. Determine the depreciation for the current fiscal year and the following fiscal year by the double-declining-balance method. Depreciation Year 1 $fill in the blank 3 Year 2 $fill in the blank 4Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? 3,024,00 x Feedback V Check My Work Book value is the initial cost of the fixed asset minus the accumulated depreciation. b. Assume that the equipment was sold on April 1 of the fifth year for $125,000. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Depreciation Expense-Equipment Accumulated Depreciation-EquipmentIf a fixed asset, such as a computer, were purchased on January 1 for $1,542 with an estimated life of 3 years and a salvage or residual value of $114, the journal entry for monthly expense under straight-line depreciation is O = Depreciation Expense. Ob Accumulated Depreciation Depreciation Expense Ос Accumulated Depreciation Depreciation Expense Od Accumulated Depreciation Accumulated Depreciation Depreciation Expense 39.67 476.00 476.00 39.67 39.67 476.00 476.00 39.67
- al Exam The estimated amount of depreciation on equipment for the current year is $7,130. Journalize the adjusting entry to record the depreciation. If an amount box does not require an entry, leave it blank.Partial-Year Depreciation Equipment acquired at a cost of $90,000 has an estimated residual value of $5,000 and an estimated useful life of 10 years. It was placed in service on October 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 Year 2 8,500 b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Depreciation Year 1 Year 2Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $424,500 and the balance in Accumulated Depreciation-Trucks is $128,900. Details of the subsidiary ledger are as follows: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year $78,500 $11,775 240,000 miles 36,000 miles 119,000 14,280 310,000 $23,800 31,000 99,500 13,930 203,000 $79,600 20,300 127,500 15,300 320,000 $25,500 38,400 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumutated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Credit to Rate per Mile Miles Accumulated Truck No. (in cents) Operated…
- Data for adjustments: • Annual depreciation: Office equipment - 20% Furniture & Fixtures - 10%If a fixed asset, such as a computer, were purchased on January 1 for $2,230 with an estimated life of 4 years and a salvage or residual value of $151, the journal entry for monthly expense under straight-line depreciation is a. Depreciation Expense 43.31 Accumulated Depreciation 43.31 b. Accumulated Depreciation 43.31 Depreciation Expense 43.31 c. Accumulated Depreciation 519.75 Depreciation Expense 519.75 d. Depreciation Expense 519.75 Accumulated Depreciation 519.75Partial-year depreciation Equipment acquired at a cost of $74,000 has an estimated residual value of $4,000 and an estimated useful life of 10 years. It was placed in service on April 1 of the current fiscal year, which ends on December 31. When required, round your answers to two decimal places. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Year 1 $ Year 2 $ Depreciation b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Year 1 Year 2 Depreciation