WDV or Straight-line method. He came to know that the expected scrap value at the end of its useful life is RO 20,000. a) Why should the company record depreciation in the books of accounts? b) What would be book value of the machinery at the end 4 years using WDV method and Straight-line method. c) comment on the depreciation method that is more suitable for the accounting purpose

WDV or Straight-line method. He came to know that the expected scrap value at the end of its useful life is RO 20,000. a) Why should the company record depreciation in the books of accounts? b) What would be book value of the machinery at the end 4 years using WDV method and Straight-line method. c) comment on the depreciation method that is more suitable for the accounting purpose

Name: O 58% D 9:38Q2. ABC Engineering Company hasbought an equipment for RO
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Description: O 58% D 9:38Q2. ABC Engineering Company hasbought an equipment for RO 100,000 withan estimated useful life of 4 years.Accounting Manager, is responsible tocalculate the depreciation to record in thebooks of accounting. He is confused inselecting the

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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This is business algebra please show your work so I will understand the question.
Given that a company is using the declining-balance method of depreciation for a machine that cost $2,500, and the machine is estimated to last 5 years, what would the depreciation expense be at the end of year 1? Group of answer choices $1,000 $1,600 $1,200 $1,300 What would the depreciation expense for the machine be on the second year? Group of answer choices $240 $1,600 $600 $1,000 What is the second year ending book value for the machine discussed in Group of answer choices $540 $900 $1,540 $1,000
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Determine depreciation for that first year using both the Straight-Line Method and the Units of Activity Method as well as determine if there was a gain or loss on disposal from the problem below. On February 1, 2021, Harper Brewing Co. purchased a truck for $20,000. It's expected salvage value is $500. The estimated useful life (in years) is 5 years. And the estimated useful life (in miles) is 100,000. On December 31, 2021, Harper Brewing Co. sells the truck for $10,000 after driving it for 30,000 miles.
On 01 March 2021 , old equipment with a useful life of six years was sold for R3000 cash . The cost price of equipment sold was R12000 and the accumulated depreciation on it amounted to R10000 on 01 March 2021 Depreciation is calculated using the straight line method. Depreciation on the remaining amounted to R48000 on 28 February 1. Prepare the asset disposal account in the general ledger. Close off the account . 2. Calculate the balance in accumulated depreciation for equipment account as at 28 February 2022. 3. calculate The profit or loss on the disposal, if the equipment was sold 28 February 2022
On January 1, Phillips Company paid $15,000 to purchase a large piece of equipment that will last 5 years. Required: 1. How much is depreciated by the end of the first year? 2. What will be the book value of the equipment at the end of the first year, after the adjusting entries have been prepared and posted? Note: Use straight-line depreciation and no salvage value.
Provide step by step manual solution, given, and depreciation table for below mentioned problem. Make sure yet that your answer is the same as the given answer before sending your solution. An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Answer. P5,263.87
Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?
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Edmonds Manufacturing Co. bought a new piece of equipment with terms of FOB: shipping point and presents the following information: Date of purchase Purchase price Shipping & Handling Installation fees Salvage value (residual value) Estimated life of the asset, in years 1/1/2015 $ 478,000 $ 5,900 $4,600 $ 26,000 20 Edmonds follows the Straight-Line Method (SLM) of depreciation and the calendar year to prepare financial statements. Edmonds spent $36,800 during 2015 on maintenance expense. Consider the following 2 scenarios: Scenario 1: Edmonds decides to sell the equipment with the sale price of $ 364,500 (received cash) Sale date: 12/31/2018 Account Name Calculate the gain (loss) from this sale transaction (after all necessary adjusting entries) and record the same with the appropriate journal entry. Only book the entry necessary for the sale of the asset. Debit Credit NOTE: There are more lincs than required for the given journal entrics. Elements and descriptions are not required.