INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
3rd Edition
ISBN: 9780137391707
Author: GORDON
Publisher: PEARSON
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Chapter 11, Problem 11.19BE
To determine
To prepare:
Given information:
Cost of testing material and supplies is $600,000.
Cost of research consultant is $100,000.
Cost of planning and designing consultant is $135,000.
Cost of laboratory equipment is $900,000.
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At the beginning of current year, Apple Company purchased
a plating machine for P5,400,000.
The entity received a government grant of P400,000 toward
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Jan. 2
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Sept. 2
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Required:
1. Prepare the journal entries necessary to record the transactions. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
Jan. 2
fill in the blank 3a5c77f4ffe0ff9_2
fill in the blank 3a5c77f4ffe0ff9_3
fill in the blank 3a5c77f4ffe0ff9_5
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Jan. 5
fill in the blank 3a5c77f4ffe0ff9_8
fill in the blank…
On January 1, 2022, Alkek Company purchased the following two machines for use in its production process.
Machine A - The cash price of this machine was $38,000. Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Alkek estimates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.
Machine B - The recorded cost of this machine was $160,000. Alkek estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period.
Calculate the amount of depreciation expense that Alkek Company should record for machine A and B (seperately) for each year of its useful life under the following assumptions.
(a) Alkek uses the straight-line…
Chapter 11 Solutions
INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
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