Depreciation : It refers to the reduction in the monetary value of the fixed tangible assets over its useful life due to its wear and tear or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life. Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below: Depreciation cost = ( Cost of the asset − Salvage value ) Estimated useful life of the asset To record: the journal entry for the purchase of equipment on January 1.

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Answer 1

Question

Chapter 9, Problem 9.9E

(a)

To determine

Depreciation: It refers to the reduction in the monetary value of the fixed tangible assets over its useful life due to its wear and tear or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below:

Depreciation cost = (Cost of the asset−Salvage value)Estimated useful life of the asset

To record: the journal entry for the purchase of equipment on January 1.

(b)

To determine

To record: the journal entry for the depreciation expense for the equipment sold on June 30, 2017

(c)

To determine

To record: the journal entry for the sale of Equipment on December 31.

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Answer 2

Question

Chapter 9, Problem 9.9E

(a)

To determine

Depreciation: It refers to the reduction in the monetary value of the fixed tangible assets over its useful life due to its wear and tear or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below:

Depreciation cost = (Cost of the asset−Salvage value)Estimated useful life of the asset

To record: the journal entry for the purchase of equipment on January 1.

(b)

To determine

To record: the journal entry for the depreciation expense for the equipment sold on June 30, 2017

(c)

To determine

To record: the journal entry for the sale of Equipment on December 31.

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Answer 3

Question

Chapter 9, Problem 9.9E

(a)

To determine

Depreciation: It refers to the reduction in the monetary value of the fixed tangible assets over its useful life due to its wear and tear or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below:

Depreciation cost = (Cost of the asset−Salvage value)Estimated useful life of the asset

To record: the journal entry for the purchase of equipment on January 1.

(b)

To determine

To record: the journal entry for the depreciation expense for the equipment sold on June 30, 2017

(c)

To determine

To record: the journal entry for the sale of Equipment on December 31.

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Answer 4

Question

Chapter 9, Problem 9.9E

(a)

To determine

Depreciation: It refers to the reduction in the monetary value of the fixed tangible assets over its useful life due to its wear and tear or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below:

Depreciation cost = (Cost of the asset−Salvage value)Estimated useful life of the asset

To record: the journal entry for the purchase of equipment on January 1.

(b)

To determine

To record: the journal entry for the depreciation expense for the equipment sold on June 30, 2017

(c)

To determine

To record: the journal entry for the sale of Equipment on December 31.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.9E

(a)

To determine

Depreciation: It refers to the reduction in the monetary value of the fixed tangible assets over its useful life due to its wear and tear or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below:

Depreciation cost = (Cost of the asset−Salvage value)Estimated useful life of the asset

To record: the journal entry for the purchase of equipment on January 1.

(b)

To determine

To record: the journal entry for the depreciation expense for the equipment sold on June 30, 2017

(c)

To determine

To record: the journal entry for the sale of Equipment on December 31.

Answer 6

Chapter 9, Problem 9.9E

(a)

To determine

Depreciation: It refers to the reduction in the monetary value of the fixed tangible assets over its useful life due to its wear and tear or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below:

Depreciation cost = (Cost of the asset−Salvage value)Estimated useful life of the asset

To record: the journal entry for the purchase of equipment on January 1.

Answer 7

Chapter 9, Problem 9.9E

(a)

To determine

Depreciation: It refers to the reduction in the monetary value of the fixed tangible assets over its useful life due to its wear and tear or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below:

Depreciation cost = (Cost of the asset−Salvage value)Estimated useful life of the asset

To record: the journal entry for the purchase of equipment on January 1.

Answer 8

(b)

To determine

To record: the journal entry for the depreciation expense for the equipment sold on June 30, 2017

Answer 9

(b)

To determine

To record: the journal entry for the depreciation expense for the equipment sold on June 30, 2017

Answer 10

(c)

To determine

To record: the journal entry for the sale of Equipment on December 31.

Answer 11

(c)

To determine

To record: the journal entry for the sale of Equipment on December 31.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 9 - Prob. 1Q Ch. 9 - Prob. 2Q Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - In the fourth year of an assets 5-year useful...

Solution Summary: The author explains the straight-line method of depreciation, wherein the same amount is allocated every year over the estimated useful life of an asset.

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To record: the journal entry for the depreciation expense for the equipment sold on June 30, 2017

To record: the journal entry for the sale of Equipment on December 31.

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