Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 9, Problem 9.22E
Recording partial-year depreciation and sale of an asset
On January 2, 2015, Ditto Clothing Consignments purchased showroom fixtures for $12,000 cash, expecting the fixtures to remain in service for five years. Ditto has
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On January 2, 2017, Thrifty CLothing Consignments purchased showroom fixtures for $12,000 cash, expecting the fixtures to remain in service for five years. Thrifty had depreciated the fixtures on a double-declining-balance basis, with zero residual value. On August 31, 2018, Thrifty sold the fixtures for $6,200 cash. Record both depreciation expense for 2018 and sale of the fixtures on August 31, 2018 (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Note that 2017 depreciation was recorded and posted in 2017.)
Alteran Corporation purchased office equipment for $1.5 million in 2015. The equipment is being depreciatedover a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $300,000. Atthe beginning of 2018, Alteran decided to change to the straight-line depreciation method for this equipment.Required:Prepare the journal entry to record depreciation for 2018
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
Ch. 9 - Prob. 1QCCh. 9 - Prob. 2QCCh. 9 - Which method almost always produces the most...Ch. 9 - A Celty Airline jet costs 28,000,000 and is...Ch. 9 - A copy machine costs 45,000 when new and has...Ch. 9 - Suppose Print and Photo Center in the preceding...Ch. 9 - Prob. 7QCCh. 9 - Prob. 8QCCh. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...
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