Equipment acquired on January 3, 2003, at a cost of $96,000, has an estimated useful life of
Question:
Equipment acquired on January 3, 2003, at a cost of $96,000, has an estimated useful life of 6 years and an estimated residual value of $6,000.
a. What was the annual amount of depreciation for the years 2003, 2004, and 2005, using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1, 2006?
c. Assuming that the equipment was sold on January 2, 2006, for $38,000, journalize the entry to record the sale.
d. Assuming that the equipment had been sold on January 2, 2006, for $53,000 instead of $38,000, journalize the entry to record the sale.
Step by Step Answer:
a 2003 depreciation expense 15000 96000 6000 6 2004 depreciation expense 1500...View the full answer
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
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
-
Equipment acquired on January 3, 2007, at a cost of $265,500, has an estimated useful life of eight years and an estimated residual value of $31,500. (a) What was the annual amount of depreciation...
-
Equipment acquired on January 4, 2009, at a cost of $425,000, has an estimated useful life of nine years and an estimated residual value of $65,000. a. What was the annual amount of depreciation for...
-
Equipment acquired on January 3, 2004, at a cost of $96,000, has an estimated useful life of six years and an estimated residual value of $6,000. a. What was the annual amount of depreciation for the...
-
There is a mathematical puzzle called "Four Fours." In it, you use four 4s to make other whole numbers. Examples: You can make 61 (4+4)+4+4-6 Four Fourths You can also make 9! You Try! What other...
-
Given find a matrix B such that BHB = A. 2 oi 1
-
Using an example, explain why the consumer optimum occurs where the ratio of the prices of two goods is equal to the marginal rate of substitution.
-
A partially polarized thermal light wave is incident on a photodetector. The total incident integrated intensity can be regarded to consist of two statistically independent components, \(W_{1}\)...
-
Basic, Inc., was a publicly traded company engaged in the business of manufacturing chemical refractories for the steel industry. Beginning in September, Combustion Engineering, Inc., and Basic began...
-
An insurance company IFA finds interesting results through correlation studies. This data has to be acquired through a grocery chain Shop Sense How can both the companies leverage data responsibly?...
-
Q No 3: M/s. Khalid Traders started business on March 1, 2006 with a cash investment of Rs.700,000. They completed the following transactions during the month: Mar.2:Paid shop rent in advance for one...
-
Jacobs Company replaced carpeting throughout its general offices. The old carpet was removed at a cost of $1,500 on March 15. The book value of the old carpet was $6,000 on March 15 ($18,000 original...
-
A printing press priced at $315,000 is acquired by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the...
-
Given the cost elements in the table below, determine the total percentage in each of the four major quality-cost categories. Cost Element Incoming test and inspection Scrap Quality training...
-
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's act the following seven activity cost pools: Activity Cost Pool Labor-related Estimated Overhead Cost $ 17,200...
-
Prove that if f [a, b] (a,b) - R is a differentiable function on (the interior of) its domain, then f': R satisfies the intermediate value theorem: for any c
-
Bill plans to open a do-it-yourself dog bathing center in a storefront, The bathing equipment will cost $180,000, Bill expects the after-tax cash inflows to be $40,000 annually for five years, after...
-
1: Find the arc length as a function of X(8) = [(ro+r)cose -rcos ( along the epicycloid if cose)] + [(ro+r)cose -rcos (Te cose)]1
-
1. eXclusive-OR (XOR), denoted by the symbol, is a logical operation that performs the following Boolean operation: x+y = xy' + x'y XOR is 1 if x and y are the complements of each other. Using truth...
-
Computer studyTruss Stiffening Strategy. For the truss in Example 8.7, use the RISA-2D computer program to (a) Recompute the vertical deflection of F if the areas of members BC, CD, DE, EF, FA, FC,...
-
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. $ 57.30 per unit $ 10.30 per unit $ 7.80 per...
-
Explain the problem with SET regarding testability. Is there anything that Social Exchange theorists could do to make the theory more testable? Use examples in your response.
-
What is the difference between realized and realizable? Give an example of where the concept of realizable is used to recognize revenue.
-
What is the difference between realized and realizable? Give an example of where the concept of realizable is used to recognize revenue.
-
What is the justification for the following deviations from recognizing revenue at the time of sale? (a) Installment sales method of recognizing revenue. (b) Recognition of revenue at completion of...
-
Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year is as follows: Actual manufacturing overhead Estimated...
-
$ 719,000 280,000 439,000 150,400 Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating...
-
FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 22 units at $44 Sale 18 units at $62 First purchase 18...
Study smarter with the SolutionInn App