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Khan Manufacturing bought a machine at the beginning of the year at a cost of $19,000. The estimated useful life was five years and the residual value was $2,000. Required: 1. Complete a depreciation schedule for the double-declining-balance method. 2. Prepare the journal entry to record Year 2 depreciation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete a depreciation schedule for the double-declining-balance method. (Do not round intermediate calculations. Round final answers to the nearest whole dollars.) Income Statement Balance Sheet Year Depreciation Expense Cost Accumulated Depreciation Book Value At acquisition 1 2 3 4 5 Khan Manufacturing bought a machine at the beginning of the year at a cost of $19,000. The estimated useful life was five years and the residual value was $2,000. Required: 1. Complete a depreciation schedule for the double-declining-balance method. 2. Prepare the journal entry to record Year 2 depreciation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Year 2 depreciation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < A Record the adjusting entry for depreciation expense for Year 2. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 2 > > 1 4 oints Skipped eBook The following are the transactions of Morrell Corporation: a. Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,400 and their Accumulated Depreciation was $4,400. No residual value was received. b. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $2,800. Required: Prepare journal entries to record above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Print View transaction list References Journal entry worksheet A B Record the disposal of computers that had cost $4,400 and their accumulated depreciation to the date of disposal was $4,400. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal > The following are the transactions of Morrell Corporation: a. Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,400 and their Accumulated Depreciation was $4,400. No residual value was received. b. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $2,800. Required: Prepare journal entries to record above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet A B Record the disposal of computers that had cost $4,400 and their accumulated depreciation to the date of disposal was $2,800. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal 2 ! S 1 of 2 kipped Required information [The following information applies to the questions displayed below.] As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units (recorded as Equipment) that were 10 years old for $860 cash. The shelves originally cost $6,640 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $440. -Book Required: 1. Complete the accounting equation below, indicating the account, amount, and the effect of disposal. Assume that depreciation has been recorded to the date of sale. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not round intermediate calculations.) Print erences Assets Liabilities Stockholders' Equity 3 t 2 of 2 ts ! Required information [The following information applies to the questions displayed below.] As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units (recorded as Equipment) that were 10 years old for $860 cash. The shelves originally cost $6,640 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $440. kipped 2. Prepare the journal entry to record the sale of the shelving units. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) eBook Print View transaction list Journal entry worksheet ferences < A Record the sale of the shelving units for $860. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit > 4 4 Ints Skipped Taste-T Company has been in business for 30 years and has developed a large group of loyal restaurant customers. Down Home Foods made an offer to buy Taste-T Company for $8,000,000. The market value of Taste-T's tangible assets, net of liabilities, on the date of the offer is $6,600,000. Taste-T also holds a patent for a fluting machine that the company invented (the patent with a market value of $700,000 was never recorded by Taste-T because it was developed internally). Required: 1. How much has Down Home Foods included for intangibles in its offer of $8,000,000? 2. Assuming Taste-T accepts this offer, which company will report Goodwill on its balance sheet and at what amount? eBook Print 1. Intangibles 2. References 5 0.4 points Skipped The following information was reported by Amuse Yourself Parks (AYP): Net fixed assets (beginning of year) Net fixed assets (end of year) Net sales for the year Net income for the year Required: $ 8,530,000 8,330,000 4,552,200 1,830,000 Compute the company's fixed asset turnover ratio for the year. Fixed Asset Turnover Ratio eBook Numerator Denominator Print References 6 Part 1 of 2 4 oints Skipped Required Information [The following Information applies to the questions displayed below.] Bridge City Consulting bought a building and the land on which it is located for $125,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. eBook Required: 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) Hint Print References View transaction list Journal entry worksheet A Record all expenditures for the land and buildings assuming all transactions were paid for with cash and occurred at the start of the year. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal > 7 Part 2 of 2 0.4 points Required Information [The following Information applies to the questions displayed below.] Bridge City Consulting bought a building and the land on which it is located for $125,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. eBook 3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $3,000 estimated residual value. (Do not round intermediate calculations.) 4. What should be the book value of (a) the land and (b) the building at the end of year 2? Hint Print References 3. Straight-Line Depreciation 4(a). Land 4(b). Building 16 9 oints eBook Mittal Companies bought a machine at the beginning of the year at a cost of $27,000. The estimated useful life was five years and the residual value was $2,000. Assume the estimated productive life of the machine is 12,500 units. Expected annual production was year 1, 2,500 units; year 2, 3,500 units; year 3, 2,500 units; year 4, 2,500 units; and year 5, 1,500 units. Required: 1. Complete a depreciation schedule for the units-of-production method. 2. Prepare the journal entry to record Year 2 depreciation. Hint Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete a depreciation schedule for the units-of-production method. (Do not round intermediate calculations. Round final answers to the nearest whole dollars.) Income Statement Balance Sheet Year Depreciation Expense Cost Accumulated Depreciation Book Value At acquisition 1 2 3 4 5 < Required 1 Required 2 > Mittal Companies bought a machine at the beginning of the year at a cost of $27,000. The estimated useful life was five years and the residual value was $2,000. Assume the estimated productive life of the machine is 12,500 units. Expected annual production was year 1, 2,500 units; year 2, 3,500 units; year 3, 2,500 units; year 4, 2,500 units; and year 5, 1,500 units. Required: 1. Complete a depreciation schedule for the units-of-production method. 2. Prepare the journal entry to record Year 2 depreciation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Year 2 depreciation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet > A Record the adjusting entry for depreciation expense for Year 2. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal Khan Manufacturing bought a machine at the beginning of the year at a cost of $19,000. The estimated useful life was five years and the residual value was $2,000. Required: 1. Complete a depreciation schedule for the double-declining-balance method. 2. Prepare the journal entry to record Year 2 depreciation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete a depreciation schedule for the double-declining-balance method. (Do not round intermediate calculations. Round final answers to the nearest whole dollars.) Income Statement Balance Sheet Year Depreciation Expense Cost Accumulated Depreciation Book Value At acquisition 1 2 3 4 5 Khan Manufacturing bought a machine at the beginning of the year at a cost of $19,000. The estimated useful life was five years and the residual value was $2,000. Required: 1. Complete a depreciation schedule for the double-declining-balance method. 2. Prepare the journal entry to record Year 2 depreciation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Year 2 depreciation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < A Record the adjusting entry for depreciation expense for Year 2. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 2 > > 1 4 oints Skipped eBook The following are the transactions of Morrell Corporation: a. Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,400 and their Accumulated Depreciation was $4,400. No residual value was received. b. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $2,800. Required: Prepare journal entries to record above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Print View transaction list References Journal entry worksheet A B Record the disposal of computers that had cost $4,400 and their accumulated depreciation to the date of disposal was $4,400. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal > The following are the transactions of Morrell Corporation: a. Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,400 and their Accumulated Depreciation was $4,400. No residual value was received. b. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $2,800. Required: Prepare journal entries to record above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet A B Record the disposal of computers that had cost $4,400 and their accumulated depreciation to the date of disposal was $2,800. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal 2 ! S 1 of 2 kipped Required information [The following information applies to the questions displayed below.] As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units (recorded as Equipment) that were 10 years old for $860 cash. The shelves originally cost $6,640 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $440. -Book Required: 1. Complete the accounting equation below, indicating the account, amount, and the effect of disposal. Assume that depreciation has been recorded to the date of sale. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not round intermediate calculations.) Print erences Assets Liabilities Stockholders' Equity 3 t 2 of 2 ts ! Required information [The following information applies to the questions displayed below.] As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units (recorded as Equipment) that were 10 years old for $860 cash. The shelves originally cost $6,640 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $440. kipped 2. Prepare the journal entry to record the sale of the shelving units. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) eBook Print View transaction list Journal entry worksheet ferences < A Record the sale of the shelving units for $860. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit > 4 4 Ints Skipped Taste-T Company has been in business for 30 years and has developed a large group of loyal restaurant customers. Down Home Foods made an offer to buy Taste-T Company for $8,000,000. The market value of Taste-T's tangible assets, net of liabilities, on the date of the offer is $6,600,000. Taste-T also holds a patent for a fluting machine that the company invented (the patent with a market value of $700,000 was never recorded by Taste-T because it was developed internally). Required: 1. How much has Down Home Foods included for intangibles in its offer of $8,000,000? 2. Assuming Taste-T accepts this offer, which company will report Goodwill on its balance sheet and at what amount? eBook Print 1. Intangibles 2. References 5 0.4 points Skipped The following information was reported by Amuse Yourself Parks (AYP): Net fixed assets (beginning of year) Net fixed assets (end of year) Net sales for the year Net income for the year Required: $ 8,530,000 8,330,000 4,552,200 1,830,000 Compute the company's fixed asset turnover ratio for the year. Fixed Asset Turnover Ratio eBook Numerator Denominator Print References 6 Part 1 of 2 4 oints Skipped Required Information [The following Information applies to the questions displayed below.] Bridge City Consulting bought a building and the land on which it is located for $125,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. eBook Required: 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) Hint Print References View transaction list Journal entry worksheet A Record all expenditures for the land and buildings assuming all transactions were paid for with cash and occurred at the start of the year. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal > 7 Part 2 of 2 0.4 points Required Information [The following Information applies to the questions displayed below.] Bridge City Consulting bought a building and the land on which it is located for $125,000 cash. The land is estimated to represent 60 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. eBook 3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $3,000 estimated residual value. (Do not round intermediate calculations.) 4. What should be the book value of (a) the land and (b) the building at the end of year 2? Hint Print References 3. Straight-Line Depreciation 4(a). Land 4(b). Building 16 9 oints eBook Mittal Companies bought a machine at the beginning of the year at a cost of $27,000. The estimated useful life was five years and the residual value was $2,000. Assume the estimated productive life of the machine is 12,500 units. Expected annual production was year 1, 2,500 units; year 2, 3,500 units; year 3, 2,500 units; year 4, 2,500 units; and year 5, 1,500 units. Required: 1. Complete a depreciation schedule for the units-of-production method. 2. Prepare the journal entry to record Year 2 depreciation. Hint Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete a depreciation schedule for the units-of-production method. (Do not round intermediate calculations. Round final answers to the nearest whole dollars.) Income Statement Balance Sheet Year Depreciation Expense Cost Accumulated Depreciation Book Value At acquisition 1 2 3 4 5 < Required 1 Required 2 > Mittal Companies bought a machine at the beginning of the year at a cost of $27,000. The estimated useful life was five years and the residual value was $2,000. Assume the estimated productive life of the machine is 12,500 units. Expected annual production was year 1, 2,500 units; year 2, 3,500 units; year 3, 2,500 units; year 4, 2,500 units; and year 5, 1,500 units. Required: 1. Complete a depreciation schedule for the units-of-production method. 2. Prepare the journal entry to record Year 2 depreciation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Year 2 depreciation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet > A Record the adjusting entry for depreciation expense for Year 2. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal
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Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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