Blossom Company shows the following entries in its Equipment account for 2018. All amounts are based on
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Question:
Blossom Company shows the following entries in its Equipment account for 2018. All amounts are based on historical costs.
Equipment | |||||||||
2018 | 2018 | ||||||||
Jan. 1 | Balance | 147,870 | June 30 | Cost of equipment sold | |||||
Aug. 10 | Purchases | 33,320 | (purchased prior to 2018) | 25,210 | |||||
12 | Freight on equipment purchased | 630 | |||||||
25 | Installation costs | 2,470 | |||||||
Nov. 10 | Repairs | 460 |
Part A: Prepare correcting entries if necessary.
Part B: Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2018 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2018, balance was purchased in 2016. (Round answers to 0 decimal places, e.g. 45,892.)
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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