MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting (My AccountingLab)

5th Edition

ISBN: 9780133877601

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

See similar textbooks

Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating exp…

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset…

Videos

Textbook Question

Chapter 9, Problem 9.41BP

Journalizing partial-year depreciation and asset disposals and exchanges

During 2016, Dora Company completed the following transactions:

Jan. 1

Traded in old office equipment with book value of $55,000 (cost of $124,000 and accumulated depreciation of $69,000) for new equipment. Dora also paid $100,000 in cash. Fair value of new equipment is $163,000. Assume the exchange had commercial substance.

Apr. 1

Sold equipment that cost $54,000 (accumulated depreciation of $42,000 through December 31 of the preceding year). Dora received $6,300 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a five-year useful life and a residual value of $0.

Dec. 31

Recorded depreciation as follows:

Office equipment is depreciated using the double-declining-balance method over four years with a $7,000 residual value.

Record the transactions in the journal of Dora Company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 9, Problem 9.40BP

Chapter 9, Problem 9.42CP

Students have asked these similar questions

Guo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 950 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 8,200 65% Conversion costs $3,000 10% A total of 10,600 units were started and 10,000 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $2,39,600 Conversion costs $ 3,77,300 The ending inventory was 90% complete with respect to materials and 80% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is: a. $21.03 b. $22.05 c. $21.75 d. $20.05

Give general account ans

Mailing advertisements to your customers is what type of cost? a. Direct material cost. b. Direct labor cost. c. Manufacturing overhead cost. d. Selling and marketing costs. e. General and administrative costs.

Chapter 9 Solutions

MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting (My AccountingLab)

Ch. 9 - Prob. 1QC Ch. 9 - Prob. 2QC Ch. 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. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...

Ch. 9 - Prob. 1RQ Ch. 9 - Prob. 2RQ Ch. 9 - Prob. 3RQ Ch. 9 - Prob. 4RQ Ch. 9 - Prob. 5RQ Ch. 9 - What is the difference between a capital...Ch. 9 - Prob. 7RQ Ch. 9 - Prob. 8RQ Ch. 9 - How does a business decide which depreciation...Ch. 9 - Prob. 10RQ Ch. 9 - Prob. 11RQ Ch. 9 - Prob. 12RQ Ch. 9 - Prob. 13RQ Ch. 9 - How is gain o r loss determined when disposing of...Ch. 9 - Prob. 15RQ Ch. 9 - Prob. 16RQ Ch. 9 - Prob. 17RQ Ch. 9 - Prob. 18RQ Ch. 9 - Prob. 19RQ Ch. 9 - What does it mean if an exchange of plant assets...Ch. 9 - Determining the cost of an asset Alton Clothing...Ch. 9 - Prob. 9.2SE Ch. 9 - Prob. 9.3SE Ch. 9 - Computing second-year depreciation and accumulated...Ch. 9 - Calculating partial-year depreciation On September...Ch. 9 - Prob. 9.6SE Ch. 9 - Prob. 9.7SE Ch. 9 - Discarding an asset On May 31, 2016, Choice...Ch. 9 - Selling an asset at gain or loss Mill Creek Golf...Ch. 9 - Selling an asset at gain or loss Pelman Company...Ch. 9 - Accounting for depletion of natural resources...Ch. 9 - Accounting for an intangible asset On March 1,...Ch. 9 - Prob. 9.13SE Ch. 9 - Prob. 9.14SE Ch. 9 - Prob. 9.15SE Ch. 9 - Prob. 9.16SE Ch. 9 - Prob. 9.17E Ch. 9 - Making a lump-sum purchase of assets Dearwood...Ch. 9 - Prob. 9.19E Ch. 9 - Computing depreciation-three methods Crackling...Ch. 9 - Changing an asset's useful life and residual value...Ch. 9 - Recording partial-year depreciation and sale of an...Ch. 9 - Prob. 9.23E Ch. 9 - Prob. 9.24E Ch. 9 - Prob. 9.25E Ch. 9 - Prob. 9.26E Ch. 9 - Computing asset turnover ratio Snap Dragon Photo...Ch. 9 - Prob. 9.28E Ch. 9 - Measuring asset cost, units-of-production...Ch. 9 - Prob. 9.30AP Ch. 9 - Determining asset cost, recording first-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.33AP Ch. 9 - Prob. 9.34AP Ch. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.36BP Ch. 9 - Determining asset cost, recording rust-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.39BP Ch. 9 - Prob. 9.40BP Ch. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.42CP Ch. 9 - Western Bank Trust purchased land and a building...Ch. 9 - Prob. 9.1CTFC Ch. 9 - Prob. 9.1CTFSC Ch. 9 - In 150 words or fewer, explain the different...

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.

Solution Summary: The author explains the accounting equation for the exchange of office equipment of D Company.

Concept explainers

Videos

Want to see the full answer?

Chapter 9 Solutions