OCL Industries discontinued the use of two assets during the fiscal year 2022 (the year end...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
OCL Industries discontinued the use of two assets during the fiscal year 2022 (the year end is December 31, 2022): a) A piece of equipment originally costing $400,000 was shut down and placed in the corner of the manufacturing facility on July 31, 2022. It is being depreciated over 10 years using a salvage value of $40,000. On January 1, 2022, accumulated depreciation totalled $288,000. The piece of equipment has not been depreciated in 2022. Due to the specialized nature of the equipment, it cannot be sold and OCL is not planning to use the equipment in the future. b) OCL produces widgets with a piece of machinery that had an original cost of $310,000. Accumulated depreciation on the machine as of January 1, 2022, was $248,000, and no depreciation has been recognized in 2022. The machine has no salvage value and is being depreciated over 10 years. On September 1, OCL decided to stop producing widgets until demand increased again (demand was expected to increase in December). Required: Prepare the appropriate entries for the year 2022 with regards to both the equipment and the piece of machinery. Date Account Titles and Explanation Debit Credit OCL Industries discontinued the use of two assets during the fiscal year 2022 (the year end is December 31, 2022): a) A piece of equipment originally costing $400,000 was shut down and placed in the corner of the manufacturing facility on July 31, 2022. It is being depreciated over 10 years using a salvage value of $40,000. On January 1, 2022, accumulated depreciation totalled $288,000. The piece of equipment has not been depreciated in 2022. Due to the specialized nature of the equipment, it cannot be sold and OCL is not planning to use the equipment in the future. b) OCL produces widgets with a piece of machinery that had an original cost of $310,000. Accumulated depreciation on the machine as of January 1, 2022, was $248,000, and no depreciation has been recognized in 2022. The machine has no salvage value and is being depreciated over 10 years. On September 1, OCL decided to stop producing widgets until demand increased again (demand was expected to increase in December). Required: Prepare the appropriate entries for the year 2022 with regards to both the equipment and the piece of machinery. Date Account Titles and Explanation Debit Credit
Expert Answer:
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
Posted Date:
Students also viewed these accounting questions
-
The turbo encoder of Figure involves the use of two RSC encoders. (a) Generalize this encoder to encompass a total of M inter-leavers. (b) Construct the block diagram of the turbo decoder that...
-
Bivariate data often arises from the use of two different techniques to measure the same quantity. As an example, the accompanying observations on x = hydrogen concentration1 (ppm) using a gas...
-
A company that produces widgets has found its demand function to be q = -1,500p + 90,000. a. For each dollar increase in the wholesale price, how many fewer widgets are demanded? b. How many widgets...
-
How is the standard form of a circles equation obtained from its general form?
-
Describe two types of Web site designs for eliciting feedback from customers.
-
Gregor Mendel (18221884), an Austrian monk, is considered the father of genetics. Mendel studied the inheritance of various traits in pea plants. One such trait is whether the pea is smooth or...
-
Consider the National Football League data in Table B.1. Restricting your attention to regressors \(x_{1}\) (rushing yards), \(x_{2}\) (passing yards), \(x_{4}\) (field goal percentage), \(x_{7}\)...
-
On June 30, the end of the current fiscal year, the following information is available to Heart Companys accountants for making adjusting entries: a. One of the companys liabilities is a mortgage...
-
Windsor, Inc. began operations on January 1, 2022. The following information is available for Windsor, Inc. on December 31, 2022. Accounts payable $4,600 Notes payable $6,440 Accounts receivable...
-
Zia Co. makes flowerpots from recycled plastic in two departments, Molding and Packaging. Zia uses the weighted average method, and units completed in the Molding department are transferred to the...
-
Chapter 1 of the textbook discussed legal issues associated with information systems, security, and privacy. It discussed cybersecurity laws such as the Computer Security Act of 1987 which require...
-
Along with limiting corona and its effects, particularly for EHV lines, the maximum ground-level electric field strength needs to be controlled to avoid the shock hazard. (a) True (b) False
-
An estate with distributable net income of $100,000 distributes the following assets to a beneficiary in December of 2019: a. What is the beneficiary's basis in the distributed assets? b. What would...
-
The propagation constant, which is a complex quantity in general, has units of ________, and the characteristic impedance has units of ________.
-
Does an open- \(\Delta\) operation, the kVA rating compared to that of the original three-phase bank is (a) \(2 / 3\) (b) \(58 \%\) (c) 1
-
In order to avoid difficulties with third-harmonic exciting current, which three-phase transformer connection is seldom used for step-up transformers between a generator and a transmission line in...
-
1-) Please solve the following linear algebra problem. I need a clear answer and explanation step by step. Find the general term of the sequence whose recurrence and first two terms are given by the...
-
Refer to Example 9.15. Add the following functionality to this program: Allow the user to enter the cost of a gallon of gas on each trip and use a function, Cost() to calculate the cost of purchasing...
-
As a lender, discuss whether you would be satisfied with the current method of classifying cash flows into only three categories. In addition, discuss the normal treatment of interest expense within...
-
Can-Ed University, which is owned by a group of Canadian universities and colleges, issued bonds to finance the construction of an overseas campus in China. Can-Ed issued 6% 20-year bonds with a face...
-
Scotts Sporting Stores Inc. reported the following cost and net realizable value information for inventory at December 31: Required: a. Calculate the ending inventory balance for skates and running...
-
Obtain a pseudo tri-diagonal matrix equation to solve the vorticity transport equation in a boundary layer with forward differencing in time and with appropriate differencing in space suitable for...
-
What is the effect of flow separation at (i) swept, (ii) unswept wings at high angle of attack.
-
Obtain an explicit expression for the vertical velocity component using a finite difference scheme prescribed in Appendix 10. The unsteady potential flow solution gives us the time dependent value of...
Study smarter with the SolutionInn App