years, tation pur depa different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus 1 2 3 BUS 1 b) BUS 2 BUS 3 Acquired Jan. 1, 2020 Jan. 1, 2020 Jan. 1, 2021 $ $ Accumulated depreciation $ Cost For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 117,000. Actual miles of use in the first 3 years were 2021, 25,500; 2022, 35,500; and 2023,29,000. Compute the amount of accumulated depreciation on each bus at December 31, 2022. $ 96,600 130,000 89,900 Save for Later eTextbook and Media Depreciation expense Salvage Value $5,500 10,000 8,000 $ Useful Life in Years 5 (1) 2020 5 4 Depreciation Method If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2020 and (2) 2021? (Round answers to 0 decimal places, e.g. 5,275.) Straight-line Declining-balance Units-of-activity $ Attempts: 0 of 5 used Submit Answer (2) 2021

years, tation pur depa different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus 1 2 3 BUS 1 b) BUS 2 BUS 3 Acquired Jan. 1, 2020 Jan. 1, 2020 Jan. 1, 2021 $ $ Accumulated depreciation $ Cost For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 117,000. Actual miles of use in the first 3 years were 2021, 25,500; 2022, 35,500; and 2023,29,000. Compute the amount of accumulated depreciation on each bus at December 31, 2022. $ 96,600 130,000 89,900 Save for Later eTextbook and Media Depreciation expense Salvage Value $5,500 10,000 8,000 $ Useful Life in Years 5 (1) 2020 5 4 Depreciation Method If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2020 and (2) 2021? (Round answers to 0 decimal places, e.g. 5,275.) Straight-line Declining-balance Units-of-activity $ Attempts: 0 of 5 used Submit Answer (2) 2021

Name: In recent years, Swifty Transportation purchased three used buses. Be
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Description: In recent years, Swifty Transportation purchased three used buses. Because of frequent turnover in the accounting department, adifferent accountant was in charge of selecting the depreciation method for each bus, and various methods have been used.

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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For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Asset A B C D E Cost 68,000 93,000 258,000 214,000 Residual Value $ 34,000 13,000 24,000 34,000 Service Life Depreciation (Years) Method 5 8 10 8 DDB SL SL DDB Depreciation (Year 2) $ 39,000 5,900 10,000 23,400
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL fa straight-line and DDB for double-declining-balance. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Asset A B C D MO E Cost Residual Value $ 31,000 62,000 87,000 252,000 211,000 6,000 21,000 31,000 Service Life (Years) 5 8 10 8 Depreciation Method DDB SL SL DDB Depreciation (Year 2) $ 30,000 5,600 9,000 23,100
A elearning.act.edu.om Muscat LLC purchased a machine on 1st January, 2019 for OMR 250,000. The rate of depreciation is 20% p.a. under straight line method. Replacement Cost of the machine on 31st December,2019 was OMR 350,000 and on 31st December, 2020 was OMR 500,000. The company wishes to follow Current Cost Accounting rather than the Historical Cost Accounting. a. What is the amount of Depreciation Adjustment? b. What is the amount of Additional Depreciation? C. What is the amount of Back Log Depreciation?
During the current year, Fortini Company disposed of three different assets. The company's accounts reflected the following on January 1 of the current years, prior to the disposal of the assets: Accumulated Depreciation (straight line) $15,750 (7 years) Original Residual Asset Machine A Machine B Machine C Cost $21,000 50,000 Value $3,000 4,000 75,000 3,000 Estimated Life 8 years 10 years 12 years 36,800 (8 years) 60,000 (10 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 of the current year for $5,000 cash. b. Machine B. Sold on April 1 for $10,500; received cash, $2,500, and a note receivable for $8,000, due on March 31 of the following year, plus 6 percent interest. c. Machine C: Suffered irreparable damage from an accident on July 2. On July 10, a salvage company removed the machine at no cost. The machine was insured, and $18,000 cash was collected from the insurance company. Required: 1. Prepare all journal entries related to the…
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At 30 June 2020, Harry Ltd has reported the following assets. Asset Carrying Amount ($) Useful Life Machine (Original cost = $300,000) 210,000 10 years Vehicle (Original cost = $280,000) 168,000 5 years Both assets are measured using the cost model and depreciated on a straight-line basis over their expected useful lives. On 31 December 2020, the company decided to change the basis of measuring the two assets from the cost model to the revaluation model. Machine was revalued to $250,000 with a new expected useful life of 10 years. Vehicle was revalued to $140,000 with a new expected useful life of 4 years. On 30 June 2021, Machine was revalued to $145,000. The tax rate is 30%. Required: Prepare the journal entries at 31 December 2020 and 30 June 2021 in relation to Machine and Vehicle. Template for journal entries: Date Particulars Debit Credit FO
Batman Inc. uses revaluation accounting for its Machinery. The following information has been provided. July 7, 2022: Purchased Machinery for $250 000 on account. Estimated Useful Life: 10 years Residual Value: $0 Depreciation Method: Straight-line (nearest full month) Frequency of Revaluation: Annually Valuation Data July 7, 2022: $250 000 December 31, 2022: $234 000 December 31, 2023: $220 000 Prepare all necessary journal entries at December 31, 2022 and 2023.
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.
gnment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator-&inprogress-false Book Show Me How Calculator Print Item Comparing three depreciation methods Depreciation Expense Final Questions Instructions Dexter Industries purchased packaging equipment on January 8 for $72,.000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method, Also determine the total depreciation expense for the three years by each method. (Note: For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar) 2. What method yields the highest depreciation…
As the accountant of a manufacturing company, you have been asked to recommend a depreciation method that will be used in measuring and reporting all fixed assets of the company. With your vast knowledge in accounting principles and in compliances with generally accepted accounting standards, you came up with the following proposed methods for the approval of the management; Method I: Straight Line Method Method II: Written Down Value Method at 59% The company bought a machine for OMR 175,000 on January 1, 2019. The machine is expected to be useful for 4 years and has an estimated salvage value of OMR 5,000. Using Method II Written Down Value at 59% per annum. Complete the table below. Year Book Value (Beg) Depreciation at 59% p.a. Book Value (End) 2. Which method will you recommend to management? Why?
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