Question: Please help me through these, I dont get it. 1. A company purchased a truck on October 1 of the current year at a cost


1. A company purchased a truck on October 1 of the current year at a cost of $40,000. The truck is expected to last six years and has a salvage value of $2,200. The company's annual accounting period ends on December 31. a. What is the depreciation expense for the current year, assuming the straight-line method is used? b. What is the depreciation expense for the current year, assuming the double-declining balance method is used? 2. A machine was purchased for $37,000 and depreciated for five years on a straight-line basis under the assumption it would have a ten-year life and a $1,000 salvage value. At the beginning of the machine's sixth year it was recognized the machine had three years of remaining life instead of five and that at the end of the remaining three years its salvage value would be $1,600. What amount of depreciation should be recorded in each of the machine's remaining three years? 3. On April 1, Year I, SAS Corp. purchased and placed in service a plant asset. The following information is available regarding the plant asset: Acquisition cost Estimated salvage value Estimated useful life $130,000 $15,000 5 years Make the necessary adjusting journal entries at December 31, Year 1, and December 31, Year 2 to record depreciation for each year under the following depreciation methods: a. Straight-line. b. Double-declining-balance. 4. A corporation received its charter and began business this year. The company is authorized to issue 50,000 shares of $100 par, 10%, noncumulative, nonparticipating preferred stock, and 500,000 shares of no-par common stock. The following selected transactions occurred during this year: Apr. 5 Issued 250 shares of preferred stock for $104 cash per share. June 15 Exchanged 750 shares of common stock for $15,000 in legal services incurred in the organization of the company. Prepare journal entries to record these transactions. S. Marble Corporation had the following balances in its stockholders' equity accounts at December 31, 2010: Common Stock, S10 par, 50,000 shares authorized, 20,000 shares issued Paid-in Capital in Excess of Par Value, Common....... Retained Earnings Treasury Stock, 1,000 shares Total stockholders' oquity. $200,000 250,000 500,000 (20.000) $930,000 The following transactions occurred during 2011: February 3 Sold and issued 3,000 shares of common stock for $22 per share. May 10 Declared a S0.50 per share dividend on common stock. October 12 Sold 500 shares of the treasury stock for S20 per share. December 31 Net income for the year was determined to be $75,000. Based on the above information, prepare a statement of stockholders' equity for 2011. Use the form below Marble Corporation Statement of Stockholders' Equity December 31, 2011 Paid-in Capital in Excess of Common Par Value. Retained Treasury Total Stock Common Earnings Stock Equity $200.000 $250.000 $500,000 $(20.000) $930.000 Balance. December 31, 2010 Balance, December 31, 2011
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