Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful life of the machinery was 10 years and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, Year 4, Williams sold the equipment for $75,000. a. Record the journal entry for the depreciation on this machinery for Year 4. If an amount box does not require an entry, leave blank. b. Record the journal entry for the sale of the machinery. If an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar.

Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful life of the machinery was 10 years and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, Year 4, Williams sold the equipment for $75,000. a. Record the journal entry for the depreciation on this machinery for Year 4. If an amount box does not require an entry, leave blank. b. Record the journal entry for the sale of the machinery. If an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar.

Name: Williams Company acquired machinery on July 1, Year 1, at a cost of $
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful life of the machinery was 10 years and the estimated residual value was $10,000. Williams uses the double-declining-balancemethod of depreciation. On

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

Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $10,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Whispering Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) (d) (e) (f) (a) Sold for $59,000 on January 1, 2022. Sold for $59,000 on April 1, 2022. SR. Account Titles and Explanation (b) Sold for $21,000 on January 1, 2022. Sold for $21,000 on September 1, 2022. Repeat (a), assuming Whispering uses double-declining…
Case E Delso Company purchased the following on January 1, 20x1: ⚫ Office equipment at a cost of $47,000 with an estimated useful life to the company of three years and a residual value of $14,100. The company uses the double-declining-balance method of depreciation for the equipment. • Factory equipment at an Invoice price of $753,800 plus shipping costs of $38,000. The equipment has an estimated useful life of 107,000 hours and no residual value. The company uses the units-of-production method of depreciation for the equipment. • A patent at a cost of $336,000 with an estimated useful life of 12 years. The company uses the straight-line method of amortization for Intangible assets with no residual value. The company's year ends on December 31. Required: 1-a. Prepare a partial depreciation schedule of office equipment for 20x1, 20x2, and 20x3. 1-b. Prepare a partial depreciation schedule of factory equipment. The company used the equipment for 9,000 hours in 20x1, 10,200 hours in…
Dog
Oriole Company owns equipment that cost $120,000 when purchased on January 2, 2024. It has been depreciated using the straight- line method based on estimated residual value of $6,000 and an estimated useful life of five years. Following are the four independent situations. Assume depreciation has been recorded to the date of sale. (a) Prepare Oriole Company's journal entry to record the sale of the equipment for $55,100 on January 2, 2027. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles Jan. 2 Debit Credit
Tick-Tock Corporation purchased equipment on January 1 at a cost of $75,000. The equipment has an estimated residual value of $15,000 and a useful life of five years. Assuming Tick-Tock utilized the straight-line method of depreciation, what is the gain or loss on the sale of equipment on December 31, Year 2, for $65,000? Select one: O a. $5,000 loss on sale O b. s10,000 loss on sale c. $14,000 gain on sale d. $20,000 gain on sale
Blue Co. purchased equipment on October 4, 20X1 at a cost of $63,000. The equipment has an estimated useful life of 4 years and an estimated salvage value of $3,000. Blue Co. uses the straight-line depreciation method. Blue Co.’s fiscal year-end is December 31. Assuming Blue Co. uses the half-year convention, what was the accumulated depreciation as of December 31, 20X2? (Round all results to the nearest whole dollar.) a. $30,000 b. $22,500 c. $15,000 d. $7,500
On January 1, year 1, Bray Company purchased for P 240,000 a machine with a useful life of ten years and no salvage value. The machine was depreciated by the double-declining balance method and the carrying amount of the machine was P 153,600 on December 31, year 2. Bray changed to the straight-line method on January 1, year 3. Bray can justify the change. What should be the depreciation expense on this machine for the year ended December 31, year 3?a. 15,360b. 19,200c. 30,720d. 24,000
Lumax LLC purchased property, plant and equipment. The details of the PPE are given below. The appropriate amount of depreciation applicable for the current accounting period shall be: Classification of PPE OMR - cost Useful life Salvage value at the end of life Machinery 1,200,000 25 year 220,000 Land and Building - the part of land 3,500,000 40 years 400,000 value included in the total amount is estimated to be OMR 800,000. 400,000 600,000 hours 25,000 Generator engines - life if based on hours operated and during the year the company operated generators for 30,000 hours. 500,000 10 years 100,000 Furniture and fittings Chapter 5 - IAS Chapter 5 - IAS 16..pdf Chapter 4 - IAS 2 .pdf A EN
On June 1, 20--, a depreciable asset was acquired for $3,600. The asset has an estimated useful life of five years (60 months) and no savage value. Using the straight-line depreciation method, caculate the book value as of December 31, 20--.
The Bandor Group sold one of its plant assets on June 1 of the current year for $70,000. The asset had an original cost of $300,900 and an estimated residual value of $9,000. The firm used the straight-line method of depreciation assuming an estimated useful life of 7 years. The asset was in service for 5 years as of January 1 of the current year. Read the requirements Requirement a. Prepare the journal entry required to record the depreciation for the current year. (Record debits first, then credits. Exclude explanations from any journal entries) Account Depreciation Expense-Plant Asset Accumulated Depreciation-Plant Asset June 1 Requirement b. Prepare the journal entry required to record the sale of the asset. (Record debits first, then credits Exclude explanations from any journal entries.) Account June 1 Cash Accumulated Depreciation Plant Asset Loss on Sale of Plant Assets
The following information pertains to Machine A purchased by Axa Incorporation. Orginal Cost Residual Value Estimated Life Accumulated Depreciation (based on straight line depreciation) $21,600 (4 years) $30,000 $3,000 5 years Machine A was sold on January 1 for $9,000. While preparing the journal entry for disposal, the loss/gain on sale of equipment will be recorded at what amount? a. Loss on sale of equipment $600 b. Gain on sale of equipment S600 c. Loss on sale of equipment $30,00 d. Loss on sale of equipment $21,600
Buffalo Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5 years; salvage value, $13,700 $523,700 Building, estimated service life, 30 years; no salvage value $678,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method. (a) Prepare the general journal entry to record depreciation expense for the equipment in 2021. (b) Prepare the journal entry to record depreciation expense for the building in 2021. (Round answers to 0 decimal places,…