Assume B1 Accounting Consultants purchased a building for $435,000 and depreciated it on a straight-line basis over
Question:
Step by Step Answer:
Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Year 20 Depreciation Expense 435000 73000 ...View the full answer
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
Assume G-1 Designing Consultants purchased a building for $400,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $55,000. After using the building for 20...
-
Assume Z-1 Software Consultants purchased a building for $445,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $90,000. After using the building for 20...
-
Assume S-1 Security Consultants purchased a building for $450,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $93,000. After using the building for 20...
-
Go out onto the Web and compare three shopping bots for a product you are interested in (e.g., www.mysimon.com, www.bottomdollar.com, www.shopzilla.com, www.shopping.com, or www.pricegrabber.com)....
-
(a) What assumptions do you make when you call the reading of a bathroom scale your "weight"? What does the scale really tell you? (b) Under what circumstances might the reading of the scale not be...
-
Pursuant to the Convention, on what grounds can a parent try and justify the removal of a child from his or her place of "habitual residence"?
-
Figure 11.64 presents the PFD of a process for the production of organic fibers (Smith, 2005). In the process, the organic solvent is removed from the fibers in dryer D-100 using circulated warmed...
-
Optimal Capital Structure is there an easily identifiable debt-equity ratio that will maximize the value of a firm? Why or why not?
-
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying. On September 30, 2024, the company leased a...
-
Zach attended Champion University during 2012-2016. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of...
-
On June 30, 2010, Roy Corp. paid $200,000 for equipment that is expected to have an eight-year life. In this industry, the residual value is approximately 10% of the asset s cost. Roy s cash revenues...
-
Assume that on January 2, 2010, McKnight of Wyoming purchased fixtures for $8,300 cash, expecting the fixtures to remain in service for five years. McKnight has depreciated the fixtures on a...
-
Evaluate and simplify the following derivatives. d dx -(csc 3x)
-
If the primary key consists of a single column, then a Table in 1NF is automatically in 2NF. (True/False)
-
The next() method defined in the ResultSet interface can be used to move the cursor that points to the current row to the next row in a ResultSet. (True/False)
-
The Apache NetBeans IDE is mainly composed of NetBeans Open-Source IDE and NetBeans Platform. (True/False)
-
JavaFX, which is a kind of script language, is a Java platform for creating and delivering rich Internet applications. But starting from JDK 9, this platform has been removed from the JDK and no...
-
A JDBC URL is composed of three parts: network host name, database server name and port number. (True/False)
-
Let \((X, \mathscr{A}, \mu)\) be a measure space. Assume that \(\mathcal{D} \subset \mathcal{L}^{p}(\mu)\) is dense. If \(\mathcal{C} \subset \mathcal{D}\) is dense w.r.t. the norm \(\|\cdot\|_{p}\),...
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
Imagine that you are the president of the campus business debating and presentation group. You routinely book business professionals who have something interesting or thought-provoking to say. The...
-
Leon Holzner owns Leon Blankets. Leon asks you to explain how he should treat the following reconciling items when reconciling the companys bank account. 1. Outstanding checks 2. A deposit in transit...
-
Ross Corporations management wants to maintain a minimum monthly cash balance of $8,000. At the beginning of September, the cash balance is $12,270; expected cash receipts for September are $97,200;...
-
Bank employees use a system known as the maker-checker system. An employee will record an entry in the appropriate journal, and then a supervisor will verify and approve the entry. These days, as all...
-
A manufacturer reports finished goods inventory of $820 on June 1 and $1,130 on June 30. Cost of goods manufactured for June is $5,460. What is cost of goods sold for June? Cost of Goods Sold Cost of...
-
Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as...
-
MyBnB started a home rental company on January 1. As of November 30, MyBnB reported the following balances. The company does not yet have a balance in Retained Earnings because this is its first year...
Study smarter with the SolutionInn App