Alpha Company purchases a factory machine at a cost of $120,000 on July 1, 2012. Punjab...

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Alpha Company purchases a factory machine at a cost of $120,000 on July 1, 2012. Punjab Co. expects the machine to have a salvage value of $10,000 at the end of its 4-year useful life. Prepare depreciation schedules for four years (accounting period ends on December 31st every year) with the following methods: (a) straight line, and (b) declining-balance using double the straight-line rate. (8) Question # 5: During 2015, Punjab Foods Company completed following transactions: 2015, Jan 1 Traded in old office equipment with carrying amount of Rs. 43,000 (Cost of Rs. 140,000 and accumulated depreciation of Rs. 97,000) for new equipment. Company also paid Rs. 90,000 in cash. Fair value of the new equipment is Rs. 124,000. July 1 Sold a building that cost Rs. 560,400 (accumulated depreciation of Rs. 260,000 through December 31 of the preceding year). Cash of Rs. 390,000 received from the sale of the building. Depreciation is computed on a straight line basis. The building has a 20 year useful life and a residual value of Rs. 90,000. Required: Record the transactions in the journal of Punjab Foods Company. Alpha Company purchases a factory machine at a cost of $120,000 on July 1, 2012. Punjab Co. expects the machine to have a salvage value of $10,000 at the end of its 4-year useful life. Prepare depreciation schedules for four years (accounting period ends on December 31st every year) with the following methods: (a) straight line, and (b) declining-balance using double the straight-line rate. (8) Question # 5: During 2015, Punjab Foods Company completed following transactions: 2015, Jan 1 Traded in old office equipment with carrying amount of Rs. 43,000 (Cost of Rs. 140,000 and accumulated depreciation of Rs. 97,000) for new equipment. Company also paid Rs. 90,000 in cash. Fair value of the new equipment is Rs. 124,000. July 1 Sold a building that cost Rs. 560,400 (accumulated depreciation of Rs. 260,000 through December 31 of the preceding year). Cash of Rs. 390,000 received from the sale of the building. Depreciation is computed on a straight line basis. The building has a 20 year useful life and a residual value of Rs. 90,000. Required: Record the transactions in the journal of Punjab Foods Company.

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Depreciation Schedules a Straight Line Method Year Cost Accumulated Depreciation Depreciation Expens... View the full answer