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 $84,000. The PPE subledger shows the following information regarding the boat: Fishing Boat - 22 Foot With Inboard Motor: Component Fibreglass body Motor Date of Purchase Apr. 9/12 Apr. 9/12 Deprec. Method SL SL Cost $24,000 60,000 $84,000 Est. Residual $3,000 -0- Est. Life 15 yr 10 yr On June 27, 2020, $66,000 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 $3,000. 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. Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. Answer is not complete. No 1 Date June 27, 2020 General Journal Debit Credit Depreciation expense, boat-motor Accumulated depreciation, boat-motor 2 June 27, 2020 Boat motor (new) 66,000 Accumulated depreciation, boat-motor 49,500 Loss on disposal Boat motor (old) 60,000 Cash 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.) Answer is not complete. No 1 Date Dec 31, 2020 General Journal Debit Credit Depreciation expense, boat Accumulated depreciation, boat Accumulated depreciation, equipment 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.) Answer is not complete. Total 2020 depreciation Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $84,000. The PPE subledger shows the following information regarding the boat: Fishing Boat - 22 Foot With Inboard Motor: Component Fibreglass body Motor Date of Purchase Apr. 9/12 Apr. 9/12 Deprec. Method SL SL Cost $24,000 60,000 $84,000 Est. Residual $3,000 -0- Est. Life 15 yr 10 yr On June 27, 2020, $66,000 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 $3,000. 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. Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. Answer is not complete. No 1 Date June 27, 2020 General Journal Debit Credit Depreciation expense, boat-motor Accumulated depreciation, boat-motor 2 June 27, 2020 Boat motor (new) 66,000 Accumulated depreciation, boat-motor 49,500 Loss on disposal Boat motor (old) 60,000 Cash 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.) Answer is not complete. No 1 Date Dec 31, 2020 General Journal Debit Credit Depreciation expense, boat Accumulated depreciation, boat Accumulated depreciation, equipment 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.) Answer is not complete. Total 2020 depreciation
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Related Book For
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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