Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on...

  

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Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $86,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor 1 Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. No 1 Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL View transaction list View journal entry worksheet 2 Date of Purchase Apr. 9/12 Apr. 9/12 On June 27, 2020, $67,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $4,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value. Date June 27, 2020 June 27, 2020 Est. Cost Residual $25,500 61,000 $86,500 Boat - motor (old) Cash General Journal Depreciation expense, boat - motor Accumulated depreciation, boat - motor Boat - motor (new) Accumulated depreciation, boat - motor Loss on disposal $6,000 -0- Est. Life 15 yr 10 yr Debit 3,050 67,000 50,325 10,675 Credit 3,050 61,000 67,000 b. Depreciation taken on the fishing boat (body plus motor) on December 31, 2020, the company's year-end. (Do not round intermediate calculations and round final answers to whole dollars.) View transaction list Journal entry worksheet 1 Record revised depreciation for 2020 on the boat (boat body plus motor). Note: Enter debits before credits. Date Dec 31, 2020 Depreciation expense, boat Accumulated depreciation, boat Record entry General Journal Clear entry Debit Credit View general journal 2. Calculate total depreciation taken on the fishing boat (body plus motor) for the company's year ended December 31, 2020. (Round the final answers to the nearest whole dollar.) Total 2020 depreciation Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $86,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor 1 Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. No 1 Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL View transaction list View journal entry worksheet 2 Date of Purchase Apr. 9/12 Apr. 9/12 On June 27, 2020, $67,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $4,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value. Date June 27, 2020 June 27, 2020 Est. Cost Residual $25,500 61,000 $86,500 Boat - motor (old) Cash General Journal Depreciation expense, boat - motor Accumulated depreciation, boat - motor Boat - motor (new) Accumulated depreciation, boat - motor Loss on disposal $6,000 -0- Est. Life 15 yr 10 yr Debit 3,050 67,000 50,325 10,675 Credit 3,050 61,000 67,000 b. Depreciation taken on the fishing boat (body plus motor) on December 31, 2020, the company's year-end. (Do not round intermediate calculations and round final answers to whole dollars.) View transaction list Journal entry worksheet 1 Record revised depreciation for 2020 on the boat (boat body plus motor). Note: Enter debits before credits. Date Dec 31, 2020 Depreciation expense, boat Accumulated depreciation, boat Record entry General Journal Clear entry Debit Credit View general journal 2. Calculate total depreciation taken on the fishing boat (body plus motor) for the company's year ended December 31, 2020. (Round the final answers to the nearest whole dollar.) Total 2020 depreciation

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Component Purchase date Cost Fibreglass Old Motor New ... View the full answer