Depreciation : Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset. Straight Line Method : Under the straight line method, the value of the asset left after deduction of the salvage value is depreciated by same amount throughout the life of the asset. Units-of-Activity Method: Under the units-of-activity method, the depreciation expense amount is calculated based on the units produced by the asset during the period. Declining-Balance Method: Under the declining balance method, the depreciation is charged at the same rate every year but on the declined balance or the book value of the asset in the beginning of the year. To Record: For machine A, journal entry of annual depreciation on December 31, 2017.

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Answer 1

Question

Chapter 10, Problem 10.3AP

(a)

To determine

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Straight Line Method: Under the straight line method, the value of the asset left after deduction of the salvage value is depreciated by same amount throughout the life of the asset.

Units-of-Activity Method: Under the units-of-activity method, the depreciation expense amount is calculated based on the units produced by the asset during the period.

Declining-Balance Method: Under the declining balance method, the depreciation is charged at the same rate every year but on the declined balance or the book value of the asset in the beginning of the year.

To Record: For machine A, journal entry of annual depreciation on December 31, 2017.

(2)

To determine

To Record: Journal entry of annual depreciation on December 31, 2017.

(b)

(1)

To determine

The amount of depreciation of machine B in each year under Straight-line method

(2)

To determine

The amount of depreciation of machine B in each year under Declining-balance method

(3)

To determine

The amount of depreciation of machine B in each year under Units-of-activity method

(c)

To determine

The method which will report highest amount of depreciation on machine B in 2017, in 2020, and over period of 4 years.

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Answer. General Account Questions

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A firm sells 2,800 units of an item each year. The carrying cost per unit is $3.26 and the fixed costs per order are $74. What is the economic order quantity? (Please round units to the nearest whole number)

Answer 2

Question

Chapter 10, Problem 10.3AP

(a)

To determine

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Straight Line Method: Under the straight line method, the value of the asset left after deduction of the salvage value is depreciated by same amount throughout the life of the asset.

Units-of-Activity Method: Under the units-of-activity method, the depreciation expense amount is calculated based on the units produced by the asset during the period.

Declining-Balance Method: Under the declining balance method, the depreciation is charged at the same rate every year but on the declined balance or the book value of the asset in the beginning of the year.

To Record: For machine A, journal entry of annual depreciation on December 31, 2017.

(2)

To determine

To Record: Journal entry of annual depreciation on December 31, 2017.

(b)

(1)

To determine

The amount of depreciation of machine B in each year under Straight-line method

(2)

To determine

The amount of depreciation of machine B in each year under Declining-balance method

(3)

To determine

The amount of depreciation of machine B in each year under Units-of-activity method

(c)

To determine

The method which will report highest amount of depreciation on machine B in 2017, in 2020, and over period of 4 years.

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Answer 3

Question

Chapter 10, Problem 10.3AP

(a)

To determine

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Straight Line Method: Under the straight line method, the value of the asset left after deduction of the salvage value is depreciated by same amount throughout the life of the asset.

Units-of-Activity Method: Under the units-of-activity method, the depreciation expense amount is calculated based on the units produced by the asset during the period.

Declining-Balance Method: Under the declining balance method, the depreciation is charged at the same rate every year but on the declined balance or the book value of the asset in the beginning of the year.

To Record: For machine A, journal entry of annual depreciation on December 31, 2017.

(2)

To determine

To Record: Journal entry of annual depreciation on December 31, 2017.

(b)

(1)

To determine

The amount of depreciation of machine B in each year under Straight-line method

(2)

To determine

The amount of depreciation of machine B in each year under Declining-balance method

(3)

To determine

The amount of depreciation of machine B in each year under Units-of-activity method

(c)

To determine

The method which will report highest amount of depreciation on machine B in 2017, in 2020, and over period of 4 years.

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Answer 4

Question

Chapter 10, Problem 10.3AP

(a)

To determine

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Straight Line Method: Under the straight line method, the value of the asset left after deduction of the salvage value is depreciated by same amount throughout the life of the asset.

Units-of-Activity Method: Under the units-of-activity method, the depreciation expense amount is calculated based on the units produced by the asset during the period.

Declining-Balance Method: Under the declining balance method, the depreciation is charged at the same rate every year but on the declined balance or the book value of the asset in the beginning of the year.

To Record: For machine A, journal entry of annual depreciation on December 31, 2017.

(2)

To determine

To Record: Journal entry of annual depreciation on December 31, 2017.

(b)

(1)

To determine

The amount of depreciation of machine B in each year under Straight-line method

(2)

To determine

The amount of depreciation of machine B in each year under Declining-balance method

(3)

To determine

The amount of depreciation of machine B in each year under Units-of-activity method

(c)

To determine

The method which will report highest amount of depreciation on machine B in 2017, in 2020, and over period of 4 years.

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Answer 5

Chapter 10, Problem 10.3AP

(a)

To determine

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Straight Line Method: Under the straight line method, the value of the asset left after deduction of the salvage value is depreciated by same amount throughout the life of the asset.

Units-of-Activity Method: Under the units-of-activity method, the depreciation expense amount is calculated based on the units produced by the asset during the period.

Declining-Balance Method: Under the declining balance method, the depreciation is charged at the same rate every year but on the declined balance or the book value of the asset in the beginning of the year.

To Record: For machine A, journal entry of annual depreciation on December 31, 2017.

(2)

To determine

To Record: Journal entry of annual depreciation on December 31, 2017.

(b)

(1)

To determine

The amount of depreciation of machine B in each year under Straight-line method

(2)

To determine

The amount of depreciation of machine B in each year under Declining-balance method

(3)

To determine

The amount of depreciation of machine B in each year under Units-of-activity method

(c)

To determine

The method which will report highest amount of depreciation on machine B in 2017, in 2020, and over period of 4 years.

Answer 6

Chapter 10, Problem 10.3AP

(a)

To determine

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Straight Line Method: Under the straight line method, the value of the asset left after deduction of the salvage value is depreciated by same amount throughout the life of the asset.

Units-of-Activity Method: Under the units-of-activity method, the depreciation expense amount is calculated based on the units produced by the asset during the period.

Declining-Balance Method: Under the declining balance method, the depreciation is charged at the same rate every year but on the declined balance or the book value of the asset in the beginning of the year.

To Record: For machine A, journal entry of annual depreciation on December 31, 2017.

Answer 7

Chapter 10, Problem 10.3AP

(a)

To determine

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Straight Line Method: Under the straight line method, the value of the asset left after deduction of the salvage value is depreciated by same amount throughout the life of the asset.

Units-of-Activity Method: Under the units-of-activity method, the depreciation expense amount is calculated based on the units produced by the asset during the period.

Declining-Balance Method: Under the declining balance method, the depreciation is charged at the same rate every year but on the declined balance or the book value of the asset in the beginning of the year.

To Record: For machine A, journal entry of annual depreciation on December 31, 2017.

Answer 8

(2)

To determine

To Record: Journal entry of annual depreciation on December 31, 2017.

Answer 9

(2)

To determine

To Record: Journal entry of annual depreciation on December 31, 2017.

Answer 10

(b)

(1)

To determine

The amount of depreciation of machine B in each year under Straight-line method

Answer 11

(b)

(1)

To determine

The amount of depreciation of machine B in each year under Straight-line method

Answer 12

(2)

To determine

The amount of depreciation of machine B in each year under Declining-balance method

Answer 13

(2)

To determine

The amount of depreciation of machine B in each year under Declining-balance method

Answer 14

(3)

To determine

The amount of depreciation of machine B in each year under Units-of-activity method

Answer 15

(3)

To determine

The amount of depreciation of machine B in each year under Units-of-activity method

Answer 16

(c)

To determine

The method which will report highest amount of depreciation on machine B in 2017, in 2020, and over period of 4 years.

Answer 17

(c)

To determine

The method which will report highest amount of depreciation on machine B in 2017, in 2020, and over period of 4 years.

Answer 18

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Answer 19

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Answer 20

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Answer 21

Ch. 10 - Prob. 1Q Ch. 10 - Prob. 2Q Ch. 10 - Prob. 3Q Ch. 10 - Prob. 4Q Ch. 10 - Prob. 5Q Ch. 10 - Prob. 6Q Ch. 10 - Prob. 7Q Ch. 10 - Prob. 8Q Ch. 10 - Prob. 9Q Ch. 10 - Prob. 10Q

To Record: Journal entry of annual depreciation on December 31, 2017.

The amount of depreciation of machine B in each year under Straight-line method

The amount of depreciation of machine B in each year under Declining-balance method

The amount of depreciation of machine B in each year under Units-of-activity method

The method which will report highest amount of depreciation on machine B in 2017, in 2020, and over period of 4 years.

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Chapter 10 Solutions