Surkis Company acquires equipment at a cost of $42,000 on January 3, 2021. Management estimates the equipment
Question:
Surkis Company acquires equipment at a cost of $42,000 on January 3, 2021. Management estimates the equipment will have a residual value of $6,000 at the end of its four-year useful life. Assume the company uses the straight-line method of depreciation. Calculate the depreciation expense for each year of the equipment’s life. Surkis has a December 31 fiscal year end.
Step by Step Answer:
Depreciable amount is 36000 42000 6000 With a 4...View the full answer
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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 Business questions
-
On October 1, 2018, Chines Company purchased equipment at a cost of $ 70 comma 000, signing a nine-month, 4% note payable for that amount. Record the October 1 purchase. Also record the adjusting...
-
Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years and an estimated residual value of $25,000. a. What was the annual amount of depreciation for the Years...
-
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...
-
What is the output after executing the following Java statements? for (int i-2; i <3; i++) for (int j-2; j <4; j++) System.out.print ((i+j) + " ");
-
A 1,200/240-V rms transformer has impedance 60 30 on the high-voltage side. If the transformer is connected to a 0.810 - load on the low-voltage side, determine the primary and secondary currents...
-
Modern economic models sometimes require strong assumptions. What do you think are some of the trade-offs between a more rigorous, logically cohesive model with strong assumptions but clear...
-
Refer to the information in Exercise 16-14. Prepare journal entries dated June 30 to record: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor...
-
In response to a growing awareness of gluten allergies, Singletary Cookie Company tried using gluten-free flour in its three most popular cookies. After several attempts and a lot of inedible...
-
There are essentially two aspects of data management: data definition and data manipulation. Data definition is operationalized by way of data definition languages (DDL). Data manipulation undergoes...
-
Activity 1: Crossword Puzzle Across 4. Ratio measuring how expensive a company's stock price is compared to EPS (2 words) 6. Shares bought back from investors 7. Solvency ratio that measures how debt...
-
Bisor Company has a December 31 year end and uses straight-line depreciation for all property, plant, and equipment. On July 1, 2019, the company purchased equipment for $500,000. The equipment had...
-
Short Track Speed Skating, a public company, purchased equipment on January 10, 2017, for $600,000. At that time, management estimated that the equipment would have a useful life of 10 years and a...
-
Jones Co. is in a technology-intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Joness inventory. The accounting staff...
-
________ costs increase as the number of facilities in a supply chain increases. Transportation Inventory Retail operation Information
-
With the help of examples, identify the five basic levers that can be used to deal with uncertainty in a supply chain. Describe the role of each lever in enabling a supply chain to achieve strategic...
-
Assume a new drug has been developed for the Ebola virus (EVD). Briefly describe the new drugs demand and supply characteristics at the beginning of its product life cycle.
-
What do you expect the level of implied demand uncertainty to be for jasmine rice produced by Thailand sold at a supermarket? Explain your answer with reference to Fishers model.
-
What are some problems that can arise if the same roles are assigned to different stages of a supply chain in order to achieve a strategic fit? Describe how roles should be assigned to help a...
-
An electron collides elastically with a stationary hydrogen atom. The mass of the hydrogen atom is 1837 times that of the electron. Assume that all motion, before and after the collision, occurs...
-
Outline a general process applicable to most control situations. Using this, explain how you would develop a system to control home delivery staff at a local pizza shop.
-
The current liabilities section of the December 31, 2016, balance sheet of Learnstream Company included notes payable of 514,000 and interest payable of 5490. The note payable was issued to Tanner...
-
On January 1, 2017. Shumway Software Company's general ledger contained these liability accounts: Accounts payable............................540,000 Unearned revenue-loyalty program.........3,700...
-
On January 1, 2015, Hopewell Company began a warranty program to stimulate sales. It is estimated that 5% of the units sold will be returned for repair at an estimated cost of $30 per unit. Sales and...
-
The uniform meterstick has an object with mass 800 grams hanging at the 15cm mark and an object with mass 350 grams at the 70cm mark. It balances horizontally on a pivot placed at the 35cm mark. What...
-
Compared to Windows environments, is UNIX system friendlier for digital investigation? Discuss this question from the following aspects: UNIX as the platform for forensic investigation and UNIX as...
-
13) Imagine that in your monthly entertainment budget, you have $156 to spend on movies and books, which cost $8 and $20 respectively. Use the data in the table below to decide what combination of...
Study smarter with the SolutionInn App