Accounting Problems Simple (6,7,8)

Note: for Questions 7 & 8, Use the list of Accounts Below

List of Accounts

• Accumulated Depletion
• Accumulated Depreciation - Vehicles
• Accumulated Depreciation - Buildings
• Accumulated Depreciation - Equipment
• Accumulated Depreciation - Furniture
• Accumulated Depreciation - Machinery
• Accumulated Depreciation - Vehicles
• Accumulated Impairment Losses - Building
• Accumulated Impairment Losses - Equipment
• Accumulated Impairment Losses - Land
• Accumulated Impairment Losses - Machinery
• Accumulated Impairment Losses - Mine
• Accumulated Impairment Losses - Patents
• Accumulated Impairment Losses - Vehicles
• Allowance for Loss on Write-down of Held for Sale Assets
• Asset Retirement Obligation
• Buildings
• Cash
• Common Shares
• Contribution Expense
• Cost of Goods Sold
• Deferred Revenue - Government Grants
• Depreciation Expense
• Equipment
• Exploration Expense
• Furniture
• Gain on Disposal of Vehicles
• Gain on Disposal of Building
• Gain on Disposal of Equipment
• Gain on Disposal of Furniture
• Gain on Disposal of Machinery
• Gain on Disposal of Vehicle
• Gain on Disposal of Land
• Interest Expense
• Interest Payable
• Inventory
• Investment Property
• Land
• Loss on Disposal of Vehicles
• Loss on Disposal of Building
• Loss on Disposal of Equipment
• Loss on Disposal of Machinery
• Loss on Disposal of Land
• Loss on Disposal of Vehicles
• Loss on Expropriation
• Loss on Impairment
• Loss on Write-down of Held for Sale Assets
• Machinery
• Mineral Resources
• No Entry
• Notes Payable
• Oil Property
• Recovery of Loss from Impairment
• Recovery of Loss from Write-down of Held for Sale Assets
• Repairs and Maintenance Expense
• Retained Earnings
• Revaluation Surplus (OCI)
• Revenue - Government Grants
• Royalty Expense
• Vehicles

Question 6

The details of the January 1, 2020 purchase of property, plant & equipment by Vaughn Industries is as follows: Cost Residual Useful Life Depreciation Value Method Machinery $1,382,000 $82,000 1 million units Activity Method Building $786,000 $96,000 30 years Straight line Computer $175,000 $10,000 5 years Double-Declining-Balance During 2020 Vaughn produced 164,000 units using its machinery. Calculate the 2020 depreciation for each of the property, plant & equipment items. (Round depreciation per unit to 2 decimal places, e.g. 7.25 and final answers to O decimal places, e.g. 5,125.) 2020 Depreciation Expense Machinery Equipment to Building Computer EquipmentPharoah Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $255,000, and was estimated to have a ten- year useful life and a residual value of $45,000. Straight-line depreciation was recorded each year-end (December 31) to the end of December 31, 2019. On January 1, 2020, Pharoah re-evaluated the machinery. It was now believed that the equipment's total life was expected to be 15 years. Prepare the journal entry to record depreciation for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit CreditSheffield Corp., a small company that follows ASPE, owns machinery that cost $905,000 and has accumulated depreciation of $360,000. The undiscounted future net cash flows from the use of the asset are expected to be $506,000. The equipment's fair value is $450,000. Using the cost recovery impairment model, prepare the journal entry, if any, to record the impairment loss. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit