Showing 641 to 650 of 5586 Questions
  • On January 1, 2012, the Dancing Gorillas Company ledger shows Equipment $29,000 and Accumulated Depreciation—Equipment $9,000. The depreciation resulted from using the straight-line method with a useful life of 10 years and salvage value of $2,000. On this date, the company concludes that the equipment has a remaining useful life of onl

  • Prepare journal entries to record the following.(a) Twitter Tracker Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salvage value is received.(b) Assume the same information as (a), except that accumulated depreciation is $39,000, instead of $41,000, on th

  • Wing Pang Company sells equipment on September 30, 2012, for $20,000 cash. The equipment originally cost $72,000 and as of January 1, 2012, had accumulated depreciation of $42,000. Depreciation for the first 9 months of 2012 is $5,250. Prepare the journal entries to (a) Update depreciation to September 30, 2012, and(b) Record the sale of

  • Deon Cole Mining Co. purchased for $7 million a mine that is estimated to have 35 million tons of ore and no salvage value. In the first year, 6 million tons of ore are extracted and sold.(a) Prepare the journal entry to record depletion expense for the first year.(b) Show how this mine is reported on the balance sheet at the end of the f

  • Information related to plant assets, natural resources, and intangibles at the end of 2012 for Lucy Company is as follows: buildings $1,100,000; accumulated depreciation—buildings $650,000; goodwill $410,000; coal mine $500,000; accumulated depletion—coal mine $108,000. Prepare a partial balance sheet of Lucy Company for these items.

  • Edmund Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $31,000 (cost $61,000 less accumulated depreciation $30,000). Its fair value is $19,000, and cash of $5,000 is paid. Prepare the entry to record the exchange, assuming the transaction has commercial substance.

  • Keynes Manufacturing has old equipment that cost $50,000. The equipment has accumulated depreciation of $28,000 and a fair value of $26,000. Keynes has decided to sell the equipment.(a) What entry would Keynes make to record the sale of the equipment for $26,000 cash?(b) What entry would Keynes make to record the sale of the equipment for

  • On March 1, 2012, Popplewell Company acquired real estate on which it planned to construct a small office building. The company paid $80,000 in cash. An old warehouse on the property was razed at a cost of $8,600; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,100 attorney’s fe

  • Jim McAvoy has prepared the following list of statements about depreciation.1. Depreciation is a process of asset valuation, not cost allocation.2. Depreciation provides for the proper matching of expenses with revenues.3. The book value of a plant asset should approximate its fair value.4. Depreciation applies to three classes of plant a

  • Kiran Shah, the new controller of Ginarrbrik Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2012. His findings are as follows.All assets are depreciated by the straight-line method. Ginarrbrik Company uses a calendar year in preparing annual financial statements. After