Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed...
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Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at December 31, 2023: (Do not round intermediate calculations. Round final answers to nearest whole dollar.) Deprec. Recoverable Amount Asset Date of Purchase Method* Cost Equipment May 1/18 Units $ 60,000 Residual Value $ 4,750 Accum. Useful Life 8,500 units Deprec. $35,750 $ 7,750 Furniture Land Jun. 28/18 DDB 27,000 3,500 8 yrs 22,559 Apr. 5/18 N/A 100,000 N/A N/A N/A Office building Apr. 5/18 SL 107,000 30,500 15 yrs 36,500 5,050 116,800 67,500 Warehouse Apr. 5/18 SL 77,500 25,000 20 yrs 27,938 60,100 *DDB = Double-declining-balance; SL = Straight-line; Units Units-of-production; N/A = Not applicable Required: 1. Record any impairment losses at December 31, 2023. Assume Kane Biotech has recorded no impairment losses in previous years. Journal entry worksheet 1 Record impairment loss on PPE, if any. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2023 Impairment loss 19,500 Equipment Office building 16,500 3,000 View general journal Record entry Clear entry 2. Record depreciation for each asset at December 31, 2024. Assume that there was no change in the residual values or useful lives regardless of any impairment losses that might have occurred. The equipment produced 2,550 units during 2024. View transaction list Journal entry worksheet < 1 2 3 4 Record the depreciation on furniture. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2024 Depreciation expense, furniture Accumulated depreciation, furniture View general journal Record entry Clear entry Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at December 31, 2023: (Do not round intermediate calculations. Round final answers to nearest whole dollar.) Deprec. Recoverable Amount Asset Date of Purchase Method* Cost Equipment May 1/18 Units $ 60,000 Residual Value $ 4,750 Accum. Useful Life 8,500 units Deprec. $35,750 $ 7,750 Furniture Land Jun. 28/18 DDB 27,000 3,500 8 yrs 22,559 Apr. 5/18 N/A 100,000 N/A N/A N/A Office building Apr. 5/18 SL 107,000 30,500 15 yrs 36,500 5,050 116,800 67,500 Warehouse Apr. 5/18 SL 77,500 25,000 20 yrs 27,938 60,100 *DDB = Double-declining-balance; SL = Straight-line; Units Units-of-production; N/A = Not applicable Required: 1. Record any impairment losses at December 31, 2023. Assume Kane Biotech has recorded no impairment losses in previous years. Journal entry worksheet 1 Record impairment loss on PPE, if any. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2023 Impairment loss 19,500 Equipment Office building 16,500 3,000 View general journal Record entry Clear entry 2. Record depreciation for each asset at December 31, 2024. Assume that there was no change in the residual values or useful lives regardless of any impairment losses that might have occurred. The equipment produced 2,550 units during 2024. View transaction list Journal entry worksheet < 1 2 3 4 Record the depreciation on furniture. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2024 Depreciation expense, furniture Accumulated depreciation, furniture View general journal Record entry Clear entry
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Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
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