A business purchased equipment for $120,000 on January 1, 2019. The equipment will be depreciated over...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A business purchased equipment for $120,000 on January 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the straight - line depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.) O A. Debit $24,000 to Depreciation Expense, and credit $24,000 to Equipment O B. Debit $120,000 to Depreciation Expense-Equipment, and credit S120,000 to Accumulated Depreciation-Equipment. OC. Debit $120,000 to Equipment, and credit S120,000 to Cash. O D. Debit $24,000 to Depreciation Expense-Equipment, and credit $24,000 to Accumulated Depreciation-Equipment A business purchased equipment for $120,000 on January 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the straight - line depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.) O A. Debit $24,000 to Depreciation Expense, and credit $24,000 to Equipment O B. Debit $120,000 to Depreciation Expense-Equipment, and credit S120,000 to Accumulated Depreciation-Equipment. OC. Debit $120,000 to Equipment, and credit S120,000 to Cash. O D. Debit $24,000 to Depreciation Expense-Equipment, and credit $24,000 to Accumulated Depreciation-Equipment
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
Students also viewed these accounting questions
-
Presented below are three independent situations. (a) CeCe Winans Corporation incurred the following costs in connection with the issuance of bonds: (1) printing and engraving costs, $12,000; (2)...
-
Moreno Company purchased equipment for $675,000 on January 1, 2011. It is estimated that the equipment will have a 3-year life and a $30,00o0 salvage value at the end of its useful life. Assume at...
-
2x 8. Solve the initial value problem y' - (22) y = 0, y(0) = 3
-
Perform computational experiments to verify that the average path length in a ring graph on \(V\) vertices is \(\sim 1 / 4 V\). Then, repeat these experiments, but add one random edge to the ring...
-
The marginal product of labor in the production of computer chips is 50 chips per hour. The marginal rate of technical substitution of hours of labor for hours of machine capital is 1/4. What is the...
-
Discuss how advertisers deal with the clutter problem in both magazines and newspapers. Explain why advertisers of products such as cosmetics or womens clothing would choose to advertise in a...
-
Helene has decided to hire a financial planner. She has to rely on ads and the yellow pages for names because she is new in town. She wants to meet with several people before choosing one.
-
The chart of accounts of LR Company includes the following selected accounts. 112 Accounts Receivable ......401 Sales Revenue 120 Inventory ...........412 Sales Returns and Allowances 126 Supplies...
-
Dear Tutor - can you please help me with the below question: 1. The Payback Period should not be used for investment decisions as it fails to consider all cash flows. Do you agree? Explain the Payb...
-
Angela Care Homes Ltd. (Angela) operates 14 care homes for people suffering with mental illness in Western Canada. It hopes to expand to Eastern Canada over the next few years and is considering...
-
Below you are given the first four values of a time series. Time Series Value 18 Time Period 1 2 20 25 4 17 Using a 4-period moving average, the forecasted value for period 5 is 2.5 17 20 10
-
Stormy Camping Supply sells tents. The company has the following income statement. Sales ($1,000 per unit) $200,000 Less Cost of Goods sold ($475 per unit) 95,000 Gross margin 105,000 Less Operating...
-
In Module 2, we discussed how accounting-based balance sheets don't represent the true value of a company. We discussed Facebook's balance sheet based on book values... Facebook Balance Sheet ASSETS...
-
Take-Home Exercise #5 Use the GPVC.accdb database to develop the following queries. Make sure to view the SQL version of your QBE query to become familiar with SQL for your upcoming exam....
-
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At t beginning of the year, the company made the following estimates:...
-
A firm is planning to set up an assembly line to assemble 40 units per hour, and 57 minutes per hour are productive. The time to perform each task and the tasks which precede each task are: Task A B...
-
Answer as soon as possible.. Directions: Write TRUE if the statement is CORRECT; Write FALSE if the statement is INCORRECT. 1. Working capital is the same as net working capital. 2. The amounts...
-
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.
-
Jack Pinno, Vice President of Production at Greco Corporation, is considering changing the companys capital acquisition and use policy. Grecos policy has been to use equipment through its useful life...
-
If the market rate of interest exceeds the face or stated rate on a long- term debt obligation, will the company issue the debt at a discount or premium? Explain.
-
When a bond is issued at a discount, will its periodic interest expense be greater or less than the interest payment? Explain.
-
Cruse Corporation started operations on January 1,2020 . Taxable income from the tax return is \(\$ 2,850,000\). Income tax rate is \(25 \%\). There were no beginning balances in deferred tax...
-
For 2020, Raleigh Corporation had taxable income of \(\$ 100,000\) and an income tax rate of \(25 \%\). Raleigh had a \(\$ 75,000\) credit balance in its Deferred Tax Liability account. This credit...
-
Listed below are ten separate situations. For each item indicates whether the difference is (1) temporary creating a deferred tax asset or a deferred tax liability or (2) permanent. Item 1. Pension...
Study smarter with the SolutionInn App