Equipment was purchased on January 1, 2017 for S80,000. The asset is expected to last for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Equipment was purchased on January 1, 2017 for S80,000. The asset is expected to last for four years, at which time the estimated residual value will be $10,000. Required a) Prepare a table showing the amount of depreciation expense each year, accumulated depreciation to date and net book value. The company uses straight: line depreciation. Do not enter dollar signs or commas in the input boxes Round all dollar figure answers to the nearest whole number Year Cost of Long-Term Asset Depreciation Expense Accumulated Depreciation Net Book Value 2017 $80,000 S17500 $17500 2018 580,000 17500 s35000 2019 SB0.000 S17500 $152500 2020 S00.000 s17500 s70000 b) The asset was sold for $13,000 on the first day of 2021. Prepare the journal entry to record the sale. Enter all debit accounts in alphabetical order, Enter all credit accounts in alphabetical order. Date Account Title and Explanation Debit Credit Jan 1 Accumulated Depreciation Cash Equipment Gain on Disposal of Asset To record sale of equipment for cash ) Using the same purchase information at the beginning of the question prepare the table assuming that the company used double declining-balance depreciation. Year Net Book Value at the Beginning of the Year Depreciation Expense Accumulated Depreciation Net Book Value at the End of the Year 2017 2018 2019 2020 d) Using the same purchase information and residual value at the beginning of the question, assume that the company uses the units-of-production method The asset can produce one million units. Prepare the depreciation table. Year Cost of Long Term Asset Units Produced Depreciation Expense Accumulated Depreciation Net Book Value 2017 s80,000 240,000S 2018 S80,000 200,000 2019 $80,000 200,000 2020 580 000 170,000 Equipment was purchased on January 1, 2017 for S80,000. The asset is expected to last for four years, at which time the estimated residual value will be $10,000. Required a) Prepare a table showing the amount of depreciation expense each year, accumulated depreciation to date and net book value. The company uses straight: line depreciation. Do not enter dollar signs or commas in the input boxes Round all dollar figure answers to the nearest whole number Year Cost of Long-Term Asset Depreciation Expense Accumulated Depreciation Net Book Value 2017 $80,000 S17500 $17500 2018 580,000 17500 s35000 2019 SB0.000 S17500 $152500 2020 S00.000 s17500 s70000 b) The asset was sold for $13,000 on the first day of 2021. Prepare the journal entry to record the sale. Enter all debit accounts in alphabetical order, Enter all credit accounts in alphabetical order. Date Account Title and Explanation Debit Credit Jan 1 Accumulated Depreciation Cash Equipment Gain on Disposal of Asset To record sale of equipment for cash ) Using the same purchase information at the beginning of the question prepare the table assuming that the company used double declining-balance depreciation. Year Net Book Value at the Beginning of the Year Depreciation Expense Accumulated Depreciation Net Book Value at the End of the Year 2017 2018 2019 2020 d) Using the same purchase information and residual value at the beginning of the question, assume that the company uses the units-of-production method The asset can produce one million units. Prepare the depreciation table. Year Cost of Long Term Asset Units Produced Depreciation Expense Accumulated Depreciation Net Book Value 2017 s80,000 240,000S 2018 S80,000 200,000 2019 $80,000 200,000 2020 580 000 170,000
Expert Answer:
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
A plant asset was purchased on January 1 for $100,000 with an estimated salvage value of $20,000 at the end of its useful life. The current year's Depreciation Expense is $10,000 calculated on the...
-
A TV system is expected to last for 50,000 hours before failure. Assume an exponential distribution for the time until failure. a. Is the distribution skewed or symmetric? b. What is the standard...
-
A small delivery truck was purchased on January 1 at a cost of $25,000. It has an estimated useful life of four years and an estimated salvage value of $5,000. Prepare a depreciation schedule showing...
-
Danone will make a euro 95 million acquisition in Ethiopia, paid in three equal instalments of Ethiopian Birr in 6,12 and 24 months. The spot rate for Birr is 47.9 and one year and two year forward...
-
Excerpts from the 2013 financial statements of Gildan Activewear Inc. are in Exhibits11A to C. In the questions below, the year 2013 refers to Gildans fiscal year ended September 29, 2013, and the...
-
The subsurface characteristics for a highway pavement rehabilitation project in the southeastern United States are shown in a "boring log" in Figure 5.13. The highway structure consists of the...
-
Consider the following observations: a. Fit the nonlinear regression model \[ y=\theta_{1} e^{\theta_{2} x}+\varepsilon \] to these data. Discuss how you obtained the starting values. b. Test for...
-
If X-bar = 85, = 8, and n = 64, construct a 95% confidence interval estimate for the population mean, .
-
Frankie has a very busy lunch counter. On Tuesday, they sold 190 meals and brought in revenue of $2,644. The vegetarian curry rice costs $7.00 and the Chicken Marsala costs $12.00. If the augmented...
-
Spencer Duck (SSN 000-22-1111) is single and his eight-year-old son, Mitch, lives with him nine months of the year in a rented condominium at 321 Hickory Drive in Ames, Iowa. Mitch lives with his...
-
Implement the following in Python using recursion: 1. Find factorial of 10 2. Find the Greatest Common Denominator of two numbers 24, 60 3. Implement the Tower of Hanoi problem. Show the moves for 3...
-
Pepe Clips charges for their grooming services bases on the following: Direct labor rate $60 per hour Materials markup 30% Using time and materials pricing, what is the total price for a job...
-
What is an earned value management measure that forecasts the amount of budget deficit or surplus?
-
How does the endocrine system influence immune function and inflammation through the actions of hormones such as cortisol, adrenaline, and thyroid hormones, and what are the implications of...
-
Why does constitutional law limit legislative law? Why do you think filing a suit against a defendant without money is a waste of time?
-
Can you elucidate the role of endocrine hormones in regulating bone metabolism and calcium homeostasis, including the actions of parathyroid hormone (PTH), calcitonin, and vitamin D, and how do...
-
A corporation has a taxable income of $1,694,593. At this income level, the federal income rate is 47%, the state tax rate is 18%, and the local tax rate is 9%. If each tax rate is applied to the...
-
A non-charmed baryon has strangeness S = 2 and electric charge Q = 0. What are the possible values of its isospin I and of its third component I z ? What is it usually called if I = 1/2?
-
Zhang Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,800,000 on March 1, HK$1,200,000 on June 1, and HK$3,000,000 on...
-
Lewis Machinery Works entered into a lease agreement on January 1, 2019, to provide Garcia SA with a piece of machinery. The terms of the lease agreement were as follows. 1. The lease is to be for 3...
-
Taxable income and pretax financial income would be identical for Jiang Group except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income...
-
The following are summaries of the cash book and bank accounts of J. Duncan who does not keep his books using the double entry system. You are required to: (a) Calculate the value of J. Duncan's...
-
Read the following and answer the questions below. On 31 December 2015 the bank column of C. Tench's cash book showed a debit balance of 1,500. The monthly bank statement written up to 31 December...
-
The bank columns in the cash book for June 2016 and the bank statement for that month for D. Hogan are as follows: You are required to: () Write the cash book up to date to take the above into...
Study smarter with the SolutionInn App