On July 10 Sunset Surfwear purchased a scanner from Taunton Equipment for $1,500. Taunton Equipment charged Sunset
Question:
On July 10 Sunset Surfwear purchased a scanner from Taunton Equipment for $1,500. Taunton Equipment charged Sunset Surfwear $200 to install the scanner. The scanner has an estimated useful life of four years and an estimated disposal value of $260.
Instructions
Prepare a plant asset record, including the depreciation schedule for the new scanner. Use the form provided in your working papers.
Serial number: TMC46312
General ledger account:
Office Equipment Location:
Main Street store Depreciation method:
Straight-line Manufacturer: Brothers Company
Step by Step Answer:
Solution A plant asset record is as follows i Year ...View the full answer
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2002, for $540,000. On January 1, 2012, a review was made of intangible assets and their expected service...
-
An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2009, for $540,000. On January 1, 2019, a review was made of intangible assets and their expected service...
-
A machine originally had an estimated useful life of 11 years, but after 4 complete years, it was decided that the original estimate of useful life should have been 16 years. At that point the...
-
Sketch the graph and draw several vertical and horizontal traces. (x, y) = sin(x y)
-
Framing the Options: Praying while Smoking, and Fighting Pandemics: By framing options for people in particular ways, we can sometimes get them to choose what wed like them to choose. One such...
-
A series RC circuit has a resistance of 200- and a capacitance of 25F and is driven by a 120-V, 60-Hz source. (a) Find the capacitive reactance and impedance of the circuit. (b) How much current is...
-
For the HiTech bond of Example 17.4, suppose that default is recognized only at maturity and that no restitution is made, that is, the default is ignored. What is the value of that bond? - Example...
-
In a 1.25-T magnetic field directed vertically upward, a particle having a charge of magnitude 8.50 .C and initially moving northward at 4.75 km/s is deflected toward the east. (a) What is the sign...
-
5. Find a function f(x) with derivative f'(x)=cc
-
The following trial balance has been extracted from the books of Walrus plc as at 31 March 2018: The following information is also available: 1. The company's non-depreciable land was valued at...
-
The following adjustments for depreciation were entered on the work sheet for InBeat CD Shop for the year ended December 31. Instructions Record the adjusting entries on general journal page 11....
-
Vertical analysis makes it easy to compare financial statements with industry standards, which are average percentages for companies in the same industry. Assume these partial vertical analyses of an...
-
Using the formula P = 2l + 2b, calculate the perimeter of a rectangle if l = 3 cm and b = 5 cm. P = 2 3 + 2 5 P = 6 + 10 P = 16 cm
-
A new restaurant is planned that specializes in low-fat and low-carb healthy food. You have been asked to create a multiplatform campaign for the grand opening. Evaluate various media and platforms...
-
Due to the pandemic, people have been afraid to go to hospitals even for non-COVID-related illnesses. They think there's a high possibility of getting infected with COVID-19 when they are in hospital...
-
What are the benefits of implementing an effective content strategy in your marketing strategy? How does personalization fit in this strategy? What are the benefits of personalization?
-
Choose an existing design (A product or service, could be an object, interactive design or a digital tool) and apply the human-centered design methodology to analyze the problem that was designed to...
-
What are the core features of CRM programs? How do they help in managing content? Explain.
-
Identify each equation as a composition of functions, a product of functions, or neither. If it is a composition or a product, then identify the two functions that combine to create the equation. a....
-
a. Why does the Wi-Fi Alliance release compatibility testing profiles in waves instead of combining the entire standards features initially? 27a1.) An 802.11ac Wi-Fi compatibility testing profile...
-
The president and vice president of USA Corporation receive benefits that are unavailable to other employees. These benefits include free parking, payment of monthly expenses in a local club,...
-
Are the same fringe benefits that are available to employees also available to self-employed individuals?
-
If an employee takes a customer to lunch and discusses business, can the employee deduct 50% of the meal for both the customer and himself? Explain.
-
Data Gross margin 2 0 % Sales $ 9 0 0 , 0 0 0 Operating income $ 5 5 , 0 0 0 Finished goods inventory, beginning balance $ 1 8 , 0 0 0 Finished goods inventory, ending balance $ 1 4 , 0 0 0 : SO WHAT...
-
Li Company has a unit selling price of $150, unit variable costs of $45, and total fixed costs of $47,200. How much sales revenue must Li Company generate to achieve net income of $27,700. Sales...
-
July August September October November December Total Average 350 450 460 390 390 360 4,960 413 3,020 3,500 4,020 3,290 3,170 3,070 $ 43,571 $ 3,631 PR 6-38 (Algo) Part 4 Compute the variable cost...
Study smarter with the SolutionInn App