[The following Information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $56,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $11,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $2,000. repare the year-end Journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining- nce method instead of the straight-line method. e: If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Do not round mediate calculations. Round your final answers to nearest whole dollar. o Event 1 Answer is not complete. General Journal Depreciation expense Accumulated depreciation-computer Debit Credit

[The following Information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $56,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $11,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $2,000. repare the year-end Journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining- nce method instead of the straight-line method. e: If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Do not round mediate calculations. Round your final answers to nearest whole dollar. o Event 1 Answer is not complete. General Journal Depreciation expense Accumulated depreciation-computer Debit Credit

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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SIMCO Company purchases a machine on 1/1/2020, at a cost of $24,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. On 1/1/2022, management decides to change the useful life to 7 years, instead of 5 years, and keep salvage value the same.
Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an estimated useful life of 12 years and an estimated residual value of $40,000. The machine was depreciated using the straight-line method. On April 1, 2021, the company no longer needed the machine and sold it for $80,000. Dewey takes a half-year depreciation for the year an asset is disposed. a. What is the book value of the machine at the end of 2020? b. Calculate and record the depreciation for 2021 in the journal provided. c. Calculate the book value of the machine at the time of sale. d. Record the sale of the machine on April 1 in the journal provided.
! Required information [The following information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024. No depreciation was recorded during the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar. View transaction list t 1 ences Journal entry worksheet 1 Record depreciation expense for 2024. Note: Enter debits before credits. Event 1 General Journal Debit Credit
On January 1,2020 Petron Company purchased an oil tanker depot at the cost of P 7,000,000 the entity is expected to operate the depot for five years, after which it is legally required to dismantle the depot and remove the underground storage tanks. The oil tanker depot is depreciated using the straight line method with no residual value. It is reliably estimated that the cost of decommissioning the depot will amount to P 1,500,000. The appropriate Discount rate is 10%. The present value of 1 at 10% for five period is 0.62. At the beginning of 2022, the entity reliably estimated that the carrying amount of decommissioning liability is P 120,000 under what it should be. The discount rate remains at 10%. On December 31,2024 after 5 years of operating the entity paid a demolition entity to dismantle the depot at a price of P 1,700,000 Required: Prepare all the required Journal Entries from January 1,2020 up to December 31,2024 At
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Grove Company acquired a production machine on January 1, 2022, at a cost of $540,000. The machine is expected to have a four- year useful life, with a salvage value of $104,000. The machine is capable of producing 74,000 units of product in its lifetime. Actual production was as follows: 16,280 units in 2022; 23,680 units in 2023; 20,720 units in 2024; 13,320 units in 2025. Following is the comparative balance sheet presentation of the net book value of the production machine at December 31 for each year of the asset's life, using three alternative depreciation methods (items a to c): Required: Identify the depreciation method used for each of the following comparative balance sheet presentations (items a to c). If a declining- balance method is used, be sure to indicate the percentage (150% or 200%). (Hint: Read the balance sheet from right to left to determine how much has been depreciated each year. Remember that December 31, 2022, is the end of the first year.) a. b. C. Production…
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Required information [The following Information applies to the questions displayed below] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $56,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $8,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $2,000. 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double declining- balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. Answer is complete but not entirely correct. No Event 1 Depreciation expense Accumulated depreciation computer General Journal Debit Credit 4,680 x 4,680
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