Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 11, Problem 7RE
At the end of Year 1, Herkimer & Co. sells two laptops for $1,800 each. Based on the information in RE11-6 in Year 1, prepare the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On January 1 of the current year, Herkimer & Co. purchases, a group of 7 laptops for its new hires. The laptops are purchased for $2,300 each with a residual value of $500 each. Herkimer expects the laptops to be used for 3 years. At the end of the current year, Herkimer & Co. sells two laptops for $1,700 each.
Required:
Prepare the journal entries to record the purchase of the laptops, the depreciation on the laptops, and the sale of the laptops in Year 1.
Gamma purchases a motor vehicle on 30 September 20X1 for $15,000 on credit. Gamma has a policy
of depreciating motor vehicles using the reducing balance method at 15% per annum, pro rata in the
years of purchase and sale.
What are the correct ledger entries to record the purchase of the vehicle at 30 September 20X1 and
what is the depreciation charge for the year ended 30 November 20X1?
Please prepare the following joiurnal entries:
Show all calcualtions
Bought a van, paying $10500 cash as a down payment and signed a 10 month $32000, 9% note payable for the balanceThe company paid 750 to have its company logo printed on the side of the van. The residual value is $7500. The old van was sold for $7500; it cost $32000 and acculumated depreciation up to the date of disposal was $30000
Chapter 11 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 11 - Briefly explain the meaning of the four factors...Ch. 11 - Prob. 2GICh. 11 - Would it be desirable to require all companies to...Ch. 11 - What is the depredation base?Ch. 11 - Prob. 5GICh. 11 - A company should use an accelerated depreciation...Ch. 11 - Prob. 7GICh. 11 - Prob. 8GICh. 11 - Prob. 9GICh. 11 - Prob. 10GI
Ch. 11 - Under U.S. GAAP, in a year in which the fair value...Ch. 11 - Prob. 12GICh. 11 - Prob. 13GICh. 11 - Compare the group and composite methods of...Ch. 11 - Prob. 15GICh. 11 - Describe the accounting for changes and...Ch. 11 - Prob. 17GICh. 11 - Prob. 18GICh. 11 - Explain the meaning of an impaired asset and...Ch. 11 - Prob. 20GICh. 11 - Prob. 21GICh. 11 - Prob. 22GICh. 11 - (Appendix 11.1) Why might depreciation on a...Ch. 11 - A method that excludes residual value from the...Ch. 11 - Vorst depreciates Asset A on the...Ch. 11 - Using the sum-of-the-years-digits method, how much...Ch. 11 - Vorst depreciates Asset C by the straight-line...Ch. 11 - A machine with a 4-year estimated useful life and...Ch. 11 - At the end of the expected useful life of a...Ch. 11 - The composite depreciation method: a. is applied...Ch. 11 - On July 1, 2018, Mundo Corporation purchased...Ch. 11 - A fixed asset with a 5-year estimated useful life...Ch. 11 - Crowder Company acquired a tract of land...Ch. 11 - Susquehanna Company purchased an asset at the...Ch. 11 - Akron Incorporated purchased an asset at the...Ch. 11 - Albany Corporation purchased equipment at the...Ch. 11 - Utica Machinery Company purchases an asset for...Ch. 11 - In Year 1, Utica Machinery Company uses the asset...Ch. 11 - At the beginning of Year 1, Herkimer Co....Ch. 11 - At the end of Year 1, Herkimer Co. sells two...Ch. 11 - Buffalo, Inc., uses composite depreciation for its...Ch. 11 - Prob. 9RECh. 11 - Assume the same information as in RE11-3, except...Ch. 11 - Oneonta Co. owns equipment with a cost of 300,000...Ch. 11 - At the beginning of the current year, Andy Company...Ch. 11 - Prob. 13RECh. 11 - (Appendix 11.1) Auburn Company purchased an asset...Ch. 11 - Depreciation Methods Gruman Company purchased a...Ch. 11 - Depreciation Methods Sorter Company purchased...Ch. 11 - Depreciation Methods Nickle Company purchased...Ch. 11 - Determination of Acquisition Cost On January 1,...Ch. 11 - Comprehensive: Acquisition, Subsequent...Ch. 11 - Prob. 6ECh. 11 - Loban Company purchased four cars for 9,000 each...Ch. 11 - Wilcox Company acquires four machines that have...Ch. 11 - Lightning Delivery Company purchased a new...Ch. 11 - Hathaway Company purchased a copying machine for...Ch. 11 - On May 10, 2019, Horan Company purchased equipment...Ch. 11 - Reveille, Inc., purchased Machine #204 on April 1,...Ch. 11 - Bailand Company purchased a building for 210,000...Ch. 11 - On January 1, 2019, Barbosa Company purchased a...Ch. 11 - On January 1, 2015, Vallahara Company purchased...Ch. 11 - Swann Company sold a delivery truck on April 1,...Ch. 11 - On July 1, 2019, Osceola Company retired a metal...Ch. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - (Appendix 11.1) Depreciation for Financial...Ch. 11 - Depreciation Methods Winsey Company purchased...Ch. 11 - Depreciation Methods Lord Company purchased a...Ch. 11 - Depreciation Methods Sayers Company purchased a...Ch. 11 - Cost of Asset and Depreciation Method Heist...Ch. 11 - Group and Composite Depreciation Chcadle Company...Ch. 11 - Borrell Company purchased four delivery trucks on...Ch. 11 - Dinnell Company owns the following assets: In the...Ch. 11 - Kam Company purchased a machine on January 2,...Ch. 11 - During 2019, Ryel Companys controller asked you to...Ch. 11 - Petes Petroleum, Inc., an SEC registrant with a...Ch. 11 - On January 1, 2014, Borstad Company purchased...Ch. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Hunter Company purchased a light truck on January...Ch. 11 - Logan Corporation, a manufacturer of steel...Ch. 11 - On January 2, 2019, Brock Corporation purchased a...Ch. 11 - On December 31, 2019, Vail Company owned the...Ch. 11 - Soon after December 31, 2019, the auditor...Ch. 11 - Prob. 19PCh. 11 - Pell Corporations Property, Plant, and Equipment...Ch. 11 - Prob. 21PCh. 11 - Prob. 1CCh. 11 - Prob. 2CCh. 11 - Straight-Line and Composite Depreciation Portland...Ch. 11 - Depreciation continues to be one of the most...Ch. 11 - The following two statements concern depreciation:...Ch. 11 - Prob. 6C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Craig has decided to start snow plowing during the winter months. He purchased a heavy-duty dump truck with plow and salter from Power Equipment for $40,000 on October 1st, 2026. He paid $1,000 as a down payment and the remaining balance on a 5% -7 year note to Power Equipment. You will be completing several accounting activities in regards to this purchase. 1. Prepare the Deprecation schedule in Excel for this dump truck with plow. Use the suggested life from an IRS publication 946, Chapter 4, Under Property Classes. Craig believes the salvage (residual) value will be $10,000 after its useful life. Craig will use the straight-line depreciation method for accounting purposes. Hint: In the first year and last year you will have partial depreciation. Include a column for Accumulated Depreciation and Book Value. Be sure your table is professional and fits on one page.arrow_forwardMay 21st Transaction: Bought a laptop, paying $15751 cash as a down payment and signed a 8 month $52501, 7% note payable for the balance. The company paid $901 to have its company logo painted on the side of the van. The residual value is $12001. The old laptop was sold for $12001; it cost $67501 and accumulated depreciation until the date of disposal was $60001. Produce a journal entry for this transaction.arrow_forwarddon't forget to Select the explanation on the last line of the journal entry table.arrow_forward
- Please watch the "Depreciation Expense Videos" and use it as a guidance to Find the depreciation expense for the following long term assets. Once you finish, please take a picture of your notes. 01/10/22 - Bought Mac Book Air ($1,548) at Best Buy (4 years Residual value: $250) 02/15/22 - Bought Microsoft Surface ($1,345) at Office Depot (4years Residual value: $220) . 02/20/22 - Bought Flat Bed ($7,985) from Mr. Diaz. Paid 30% Down Payment (7 years Residual Value: $2220) • 02/28/22 - Bought Anti-Virus for 3 years ($1,600) (NO RESIDUAL)arrow_forwardAt the beginning of the current year, Andy Company has equipment that originally cost $70,000, has $49,000 accumulated depreciation, and is being depreciated at $7,000 per year. Andy sells this equipment for $15,500 at the end of the current year. Required: Prepare journal entries to record both the current year’s depreciation and the disposal of the equipment.arrow_forwardPlease answer the following question: Beaver Construction purchases new equipment for $45,360 cash on April 1, 2024. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no resale or scrap value at the end. Beaver depreciates equipment evenly over the 84 months ($540/month). Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of Accumulated Depreciation and Depreciation Expense (assuming the balance of Accumulated Depreciation at the beginning of 2024 is $0).arrow_forward
- Hi there, How do I write the journal entires for this question? Thanksarrow_forwardPLEASE SHOW SOLUTION IN GOOD ACCOUNTING FORM. 5. Crest Corporation established its Poblacion branch in 2019. Merchandise costing P120,000 is shipped to this branch. During the initial year, the home office acquires an equipment for P80,000 to be carried in the branch books, and the branch maintains physical possession and use. The equipment has a useful life of 4 years. The branch sells 60 percent of the inventory for P100,800 on account and subsequently collected half of the amount. The branch remits 80 percent in cash to the Home Office. What is the correct Home Office account balance on the records of the branch?arrow_forwardKindly answer in good accounting form. Thank you!Chester Corporation established its Poblacion branch in 2019.Merchandise costing P120,000 is shipped to this branch. During the initialyear, the home office acquires an equipment for P80,000 to be carried inthe branch books, and the branch maintains physical possession and use.The equipment has a useful life of 4 years. The branch sells 60 percent ofthe inventory for P100,800 on account and subsequently collected half ofthe amount. The branch remits 80 percent in cash to the Home Office.What is the correct Home Office account balance on the records of thebranch?arrow_forward
- on 1 july 2019 francine bought a new security alarm system for her shop. the total sost for the akarm system came to $16623. the alarm has an effective life for 10 years. required usediminishing value method and calculate tpta; amount of deprecation she can claim on the alarm for the 2020 financial year?arrow_forwardBlossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On April 2, it paid $2,170 for delivery of the machine. A one-year, $4,120 insurance policy on the machine was purchased on April 5. On April 19, Blossom paid $7,580 for installation and testing of the machine. The machine was ready for use on April 30. (a) Determine the cost of the machine. Cost of the machine $__________arrow_forwardWildhorse Co. sells office equipment on July 31, 2022, for $20,600 cash. The office equipment originally cost $73,300 and as of January 1, 2022, had accumulated depreciation of $42,100. Depreciation for the first 7 months of 2022 is $4,750. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) eTextbook and Mediaarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Depreciation -MACRS; Author: Ronald Moy, Ph.D., CFA, CFP;https://www.youtube.com/watch?v=jsf7NCnkAmk;License: Standard Youtube License