Journal entry is recording of all accounting transaction in a chronological order. Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset. Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset. Requirement 1: We have to determine the total of all asset mentioned.

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Answer 1

Question

Chapter 10, Problem 3BPSB

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 1:

We have to determine the total of all asset mentioned.

Expert Solution

Answer to Problem 3BPSB

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

Explanation of Solution

Allocation of purchase price	Appraised value	Percent of Total appraised value	x	Total cost of acquisition	=	Apportioned cost

Land	795,200	56%		1,550,000		868,000
Building B	482,800	34%		1,550,000		527,000
Land improvement B	142,000	10%		1,550,000		155,000
Total	1,419,800	100%				$1,550,000

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Purchase price	868,000	527,000	0	155,000	0
Demolition	122,000
Land grading	174,500
New building (construction)	0	0	1458,000	0	0
New improvement cost					103,500
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 2:

We have to determine the journal entry for cash transaction.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Land	1,164,500
	Building B	527,000
	Building C	1,458,000
	Land improvements B	155,000
	Land improvements C	103,500
	Cash		3,408,000
	( to record cash transaction)

Explanation of Solution

The above answer can be explained as all asset will be debited and cash account will be credited.

In this case land account, Building B &C and Land improvements B & C will be debited with their respective amount and cash account will be credited with lumpsum amount.

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 3:

We have to determine the journal entry for depreciation asset.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Depreciation expense- building B	28,500
	Accumulated depreciation − building B		28,500
	( to record depreciation)

	Depreciation expense- building C	60,000
	Accumulated depreciation − building C		60,000
	( to record depreciation)

	Depreciation expense- land improvement B	31000
	Accumulated depreciation − land improvement B		31000
	( to record depreciation)

	Depreciation expense- land improvement C	10350
	Accumulated depreciation − land improvement C		10350
	( to record depreciation)

Explanation of Solution

The above answer can be explained as depreciation will be calculated on asset and depreciation expense on asset will be debited and accumulated depreciation account will be credited.

Depreciation on assets can be calculated as −

Depreciation=cost−salvagevalue/usefullifeofanasset

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Selected comparative financial statements of Korbin Company follow. Sales KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ 512,008 $ 392,240 2019 $ 272,200 Cost of goods sold 308,229 245,542 174,208 Gross profit 203,779 146,698 97,992 Selling expenses 72,705 54,129 35,930 Administrative expenses 46,081 34,517 22,593 Total expenses 118,786 88,646 58,523 Income before taxes .84,993 58,052 39,469 Income tax expense 15,809 11,901 8,012 Net income $ 69,184 $ 46,151 $ 31,457 KORBIN COMPANY Comparative Balance Sheets Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings December 31 2021 2020 2019 $ 54,370 0 $ 36,390 600 $ 48,645 3,870 99,436 90,776 53,339 Total liabilities and equity $ 153,806 $ 127,766 $ 105,854 $ 22,456 $ 19,037 $ 18,524 68,000 68,000 50,000 8,500 8,500 5,556 54,850 32,229 31,774 $ 153,806 $ 127,766 $ 105,854

provide correct answer me

Answer 2

Question

Chapter 10, Problem 3BPSB

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 1:

We have to determine the total of all asset mentioned.

Expert Solution

Answer to Problem 3BPSB

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

Explanation of Solution

Allocation of purchase price	Appraised value	Percent of Total appraised value	x	Total cost of acquisition	=	Apportioned cost

Land	795,200	56%		1,550,000		868,000
Building B	482,800	34%		1,550,000		527,000
Land improvement B	142,000	10%		1,550,000		155,000
Total	1,419,800	100%				$1,550,000

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Purchase price	868,000	527,000	0	155,000	0
Demolition	122,000
Land grading	174,500
New building (construction)	0	0	1458,000	0	0
New improvement cost					103,500
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 2:

We have to determine the journal entry for cash transaction.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Land	1,164,500
	Building B	527,000
	Building C	1,458,000
	Land improvements B	155,000
	Land improvements C	103,500
	Cash		3,408,000
	( to record cash transaction)

Explanation of Solution

The above answer can be explained as all asset will be debited and cash account will be credited.

In this case land account, Building B &C and Land improvements B & C will be debited with their respective amount and cash account will be credited with lumpsum amount.

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 3:

We have to determine the journal entry for depreciation asset.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Depreciation expense- building B	28,500
	Accumulated depreciation − building B		28,500
	( to record depreciation)

	Depreciation expense- building C	60,000
	Accumulated depreciation − building C		60,000
	( to record depreciation)

	Depreciation expense- land improvement B	31000
	Accumulated depreciation − land improvement B		31000
	( to record depreciation)

	Depreciation expense- land improvement C	10350
	Accumulated depreciation − land improvement C		10350
	( to record depreciation)

Explanation of Solution

The above answer can be explained as depreciation will be calculated on asset and depreciation expense on asset will be debited and accumulated depreciation account will be credited.

Depreciation on assets can be calculated as −

Depreciation=cost−salvagevalue/usefullifeofanasset

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Answer 3

Question

Chapter 10, Problem 3BPSB

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 1:

We have to determine the total of all asset mentioned.

Expert Solution

Answer to Problem 3BPSB

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

Explanation of Solution

Allocation of purchase price	Appraised value	Percent of Total appraised value	x	Total cost of acquisition	=	Apportioned cost

Land	795,200	56%		1,550,000		868,000
Building B	482,800	34%		1,550,000		527,000
Land improvement B	142,000	10%		1,550,000		155,000
Total	1,419,800	100%				$1,550,000

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Purchase price	868,000	527,000	0	155,000	0
Demolition	122,000
Land grading	174,500
New building (construction)	0	0	1458,000	0	0
New improvement cost					103,500
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 2:

We have to determine the journal entry for cash transaction.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Land	1,164,500
	Building B	527,000
	Building C	1,458,000
	Land improvements B	155,000
	Land improvements C	103,500
	Cash		3,408,000
	( to record cash transaction)

Explanation of Solution

The above answer can be explained as all asset will be debited and cash account will be credited.

In this case land account, Building B &C and Land improvements B & C will be debited with their respective amount and cash account will be credited with lumpsum amount.

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 3:

We have to determine the journal entry for depreciation asset.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Depreciation expense- building B	28,500
	Accumulated depreciation − building B		28,500
	( to record depreciation)

	Depreciation expense- building C	60,000
	Accumulated depreciation − building C		60,000
	( to record depreciation)

	Depreciation expense- land improvement B	31000
	Accumulated depreciation − land improvement B		31000
	( to record depreciation)

	Depreciation expense- land improvement C	10350
	Accumulated depreciation − land improvement C		10350
	( to record depreciation)

Explanation of Solution

The above answer can be explained as depreciation will be calculated on asset and depreciation expense on asset will be debited and accumulated depreciation account will be credited.

Depreciation on assets can be calculated as −

Depreciation=cost−salvagevalue/usefullifeofanasset

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Answer 4

Question

Chapter 10, Problem 3BPSB

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 1:

We have to determine the total of all asset mentioned.

Expert Solution

Answer to Problem 3BPSB

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

Explanation of Solution

Allocation of purchase price	Appraised value	Percent of Total appraised value	x	Total cost of acquisition	=	Apportioned cost

Land	795,200	56%		1,550,000		868,000
Building B	482,800	34%		1,550,000		527,000
Land improvement B	142,000	10%		1,550,000		155,000
Total	1,419,800	100%				$1,550,000

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Purchase price	868,000	527,000	0	155,000	0
Demolition	122,000
Land grading	174,500
New building (construction)	0	0	1458,000	0	0
New improvement cost					103,500
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 2:

We have to determine the journal entry for cash transaction.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Land	1,164,500
	Building B	527,000
	Building C	1,458,000
	Land improvements B	155,000
	Land improvements C	103,500
	Cash		3,408,000
	( to record cash transaction)

Explanation of Solution

The above answer can be explained as all asset will be debited and cash account will be credited.

In this case land account, Building B &C and Land improvements B & C will be debited with their respective amount and cash account will be credited with lumpsum amount.

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 3:

We have to determine the journal entry for depreciation asset.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Depreciation expense- building B	28,500
	Accumulated depreciation − building B		28,500
	( to record depreciation)

	Depreciation expense- building C	60,000
	Accumulated depreciation − building C		60,000
	( to record depreciation)

	Depreciation expense- land improvement B	31000
	Accumulated depreciation − land improvement B		31000
	( to record depreciation)

	Depreciation expense- land improvement C	10350
	Accumulated depreciation − land improvement C		10350
	( to record depreciation)

Explanation of Solution

The above answer can be explained as depreciation will be calculated on asset and depreciation expense on asset will be debited and accumulated depreciation account will be credited.

Depreciation on assets can be calculated as −

Depreciation=cost−salvagevalue/usefullifeofanasset

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 3BPSB

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 1:

We have to determine the total of all asset mentioned.

Expert Solution

Answer to Problem 3BPSB

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

Explanation of Solution

Allocation of purchase price	Appraised value	Percent of Total appraised value	x	Total cost of acquisition	=	Apportioned cost

Land	795,200	56%		1,550,000		868,000
Building B	482,800	34%		1,550,000		527,000
Land improvement B	142,000	10%		1,550,000		155,000
Total	1,419,800	100%				$1,550,000

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Purchase price	868,000	527,000	0	155,000	0
Demolition	122,000
Land grading	174,500
New building (construction)	0	0	1458,000	0	0
New improvement cost					103,500
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 2:

We have to determine the journal entry for cash transaction.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Land	1,164,500
	Building B	527,000
	Building C	1,458,000
	Land improvements B	155,000
	Land improvements C	103,500
	Cash		3,408,000
	( to record cash transaction)

Explanation of Solution

The above answer can be explained as all asset will be debited and cash account will be credited.

In this case land account, Building B &C and Land improvements B & C will be debited with their respective amount and cash account will be credited with lumpsum amount.

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 3:

We have to determine the journal entry for depreciation asset.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Depreciation expense- building B	28,500
	Accumulated depreciation − building B		28,500
	( to record depreciation)

	Depreciation expense- building C	60,000
	Accumulated depreciation − building C		60,000
	( to record depreciation)

	Depreciation expense- land improvement B	31000
	Accumulated depreciation − land improvement B		31000
	( to record depreciation)

	Depreciation expense- land improvement C	10350
	Accumulated depreciation − land improvement C		10350
	( to record depreciation)

Explanation of Solution

The above answer can be explained as depreciation will be calculated on asset and depreciation expense on asset will be debited and accumulated depreciation account will be credited.

Depreciation on assets can be calculated as −

Depreciation=cost−salvagevalue/usefullifeofanasset

Answer 6

Chapter 10, Problem 3BPSB

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 1:

We have to determine the total of all asset mentioned.

Expert Solution

Answer to Problem 3BPSB

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

Explanation of Solution

Allocation of purchase price	Appraised value	Percent of Total appraised value	x	Total cost of acquisition	=	Apportioned cost

Land	795,200	56%		1,550,000		868,000
Building B	482,800	34%		1,550,000		527,000
Land improvement B	142,000	10%		1,550,000		155,000
Total	1,419,800	100%				$1,550,000

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Purchase price	868,000	527,000	0	155,000	0
Demolition	122,000
Land grading	174,500
New building (construction)	0	0	1458,000	0	0
New improvement cost					103,500
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

Answer 7

Chapter 10, Problem 3BPSB

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 1:

We have to determine the total of all asset mentioned.

Answer 8

Expert Solution

Answer to Problem 3BPSB

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Allocation of purchase price	Appraised value	Percent of Total appraised value	x	Total cost of acquisition	=	Apportioned cost

Land	795,200	56%		1,550,000		868,000
Building B	482,800	34%		1,550,000		527,000
Land improvement B	142,000	10%		1,550,000		155,000
Total	1,419,800	100%				$1,550,000

Particulars	Land	Building B	Building C	Land improvements B	Land improvements C
Purchase price	868,000	527,000	0	155,000	0
Demolition	122,000
Land grading	174,500
New building (construction)	0	0	1458,000	0	0
New improvement cost					103,500
Totals	$1,164,500	527,000	1,458,000	155,000	103,500

Answer 13

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 2:

We have to determine the journal entry for cash transaction.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Land	1,164,500
	Building B	527,000
	Building C	1,458,000
	Land improvements B	155,000
	Land improvements C	103,500
	Cash		3,408,000
	( to record cash transaction)

Explanation of Solution

The above answer can be explained as all asset will be debited and cash account will be credited.

In this case land account, Building B &C and Land improvements B & C will be debited with their respective amount and cash account will be credited with lumpsum amount.

Answer 14

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 2:

We have to determine the journal entry for cash transaction.

Answer 15

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Land	1,164,500
	Building B	527,000
	Building C	1,458,000
	Land improvements B	155,000
	Land improvements C	103,500
	Cash		3,408,000
	( to record cash transaction)

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

The above answer can be explained as all asset will be debited and cash account will be credited.

In this case land account, Building B &C and Land improvements B & C will be debited with their respective amount and cash account will be credited with lumpsum amount.

Answer 20

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 3:

We have to determine the journal entry for depreciation asset.

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Depreciation expense- building B	28,500
	Accumulated depreciation − building B		28,500
	( to record depreciation)

	Depreciation expense- building C	60,000
	Accumulated depreciation − building C		60,000
	( to record depreciation)

	Depreciation expense- land improvement B	31000
	Accumulated depreciation − land improvement B		31000
	( to record depreciation)

	Depreciation expense- land improvement C	10350
	Accumulated depreciation − land improvement C		10350
	( to record depreciation)

Explanation of Solution

The above answer can be explained as depreciation will be calculated on asset and depreciation expense on asset will be debited and accumulated depreciation account will be credited.

Depreciation on assets can be calculated as −

Depreciation=cost−salvagevalue/usefullifeofanasset

Answer 21

To determine

Concept Introduction:

Journal entry is recording of all accounting transaction in a chronological order.

Straight line depreciation is a method of depreciation in which asset is depreciated over its useful life constantly. In this method depreciated is calculated by dividing cost of asset less salvage value by useful life of an asset.

Double declining method of depreciation is a method of depreciation in which rate is doubled according to the useful life of an asset.

Requirement 3:

We have to determine the journal entry for depreciation asset.

Answer 22

Expert Solution

Answer to Problem 3BPSB

Transaction	Particulars	Amount ($)	Amount($)

1.	Depreciation expense- building B	28,500
	Accumulated depreciation − building B		28,500
	( to record depreciation)

	Depreciation expense- building C	60,000
	Accumulated depreciation − building C		60,000
	( to record depreciation)

	Depreciation expense- land improvement B	31000
	Accumulated depreciation − land improvement B		31000
	( to record depreciation)

	Depreciation expense- land improvement C	10350
	Accumulated depreciation − land improvement C		10350
	( to record depreciation)

Answer 23

Expert Solution

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

The above answer can be explained as depreciation will be calculated on asset and depreciation expense on asset will be debited and accumulated depreciation account will be credited.

Depreciation on assets can be calculated as −

Depreciation=cost−salvagevalue/usefullifeofanasset