The following assets are owned by the Dinnell Company: In the year of acquisition and retirement of
Question:
The following assets are owned by the Dinnell Company:
![The following assets are owned by the Dinnell Company:](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images4/120-B-A-I-A(1783).png)
In the year of acquisition and retirement of an asset, the company records depreciation for one-half year. During 2008, asset A was sold for $7,000.
Required
Prepare the journal entries to record depreciation on each asset for 2005 through 2008 and the sale of assetA.
Asset Year purchased Cost Expected life Residual value Depreciation method Straight-line Sum-of-the-years-digits Double-declining-balance 2005 $20,000 5 years $2,000 2006 $40,000 8 years 2007 $100,000 10 years $10,000
Step by Step Answer:
2005 A Straightline depreciation 3600 per year Depreciation Expense 3600 x 1800 Accumulated Deprecia...View the full answer
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
The following assets are owned by different Canadian taxpayers who hold no other foreign investments at any time during the year. All amounts are in Canadian dollars. For each asset, determine...
-
Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one- half year. During 2017, Asset A was sold for $ 7,000....
-
The following assets are to be transferred under section 85 for consideration including common shares plus "boot" as indicated below: ** Indefinite life REQUIRED (A) Compute the minimum possible...
-
Given the following information set up the problem in a transportation table and solve for the minimum-cost plan: Minimum total cost? Demand 550 700 750 Capacity 500 500 500 Regular Overtime 50 50...
-
Refer to the information from Problem 10.49, Parts 1, 2, and 3. The budget indicates that the company is likely to incur a loss during the next period. The accountant asks you to assist him in...
-
Researchers conducted an experiment to compare the average oral body temperatures for persons taking one of nine different medications often prescribed for high blood pressure. The researchers were...
-
Present Value, Future Value The following situations involve time value of money calculations. 1. A deposit of $7,000 is made on January 1, 2008. The deposit will earn interest at a rate of 8%. How...
-
Each year forbes ranks the world's most valuable brands. A portion of the data for 82 of the brands in the 2013 forbes list is shown in Table 2.12 (forbes website, February, 2014). The data set...
-
\f
-
The Case Study - "Lemonade: Delighting Insurance Customers with AI and Behavioral Economics". 1. How do you explain the phenomenal growth experienced by Lemonade? 2. Does Lemonade create a unique...
-
The Heist Company purchased a machine on January 2, 2007 and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of...
-
The Cheadle Company purchased a fleet of 20 delivery trucks for $8,000 each on January 2, 2007. It decided to use composite depreciation on a straight-line basis, and calculated the depreciation from...
-
Which of the current issues highlighted in this chapter do you think most affect health communication practice, and why? Do you have any experience in addressing these issues or participating in...
-
Question 1: (Marks 10-CLO2) . . . . . High Level . Sensor Figure 1 The system shown in Figure 1 represents a PLC controlled grain transfer system. The conveyor can run in either direction as shown by...
-
On March 1, 2020, Turtle Trucking Company issues $400,000, 10-year bonds, dated January 1, 2020, at 102 plus accrued interest. These bonds have a stated interest rate of 5 percent, payable...
-
-4 -x+4y+32 Consider the 3 x 3 matrix A= 3 3x-12y-10z 3 -11 2x-8y-7z -8 -1 Find all the possible values of x, y and z for which A is symmetric.
-
Briefly explain about marketing campaigns/advertisements (TV Commercial or print ad) which influenced you as a child. Do you think this ad will have an impact on the current generation, explain...
-
Leroy purchased a term-to-age 65 life insurance policy at the age of 33. He turns 60 next month and is considering converting his policy to a permanent plan of insurance. When must he make this...
-
What efforts have South American countries made to regionally integrate their economies?
-
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...
-
Ionization energies can be determined for molecules and atoms. Draw the molecular orbital diagrams for NO and CO, and predict which compound has the lower ionization energy.
-
Fielder Company obtained land by issuing 2,000 shares of its $10 par value common stock . The land was recently appraised at $85,000. The common stock is actively traded at $40 per share. Prepare the...
-
Fielder Company obtained land by issuing 2,000 shares of its $10 par value common stock . The land was recently appraised at $85,000. The common stock is actively traded at $40 per share. Prepare the...
-
Fielder Company obtained land by issuing 2,000 shares of its $10 par value common stock . The land was recently appraised at $85,000. The common stock is actively traded at $40 per share. Prepare the...
-
Current Attempt in Progress The following information is taken from the 2 0 2 2 general ledger of Bramble Company. \ table [ [ Rent expense,$ 3 0 , 3 0 0
-
Arizona Corporation acquired the business Data Systems for $ 3 4 5 , 0 0 0 cash and assumed all liabilities at the date of purchase. Data s books showed tangible assets of $ 3 9 0 , 0 0 0 ,...
-
Rundle Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1 , year 1 . The company president formed a...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App