The cost of equipment purchased by Bonita, Inc., on June 1, 2025, is $119,700. It is...
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The cost of equipment purchased by Bonita, Inc., on June 1, 2025, is $119,700. It is estimated that the machine will have a $10,500 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 54,600, and its total production is estimated at 728,000 units. During 2025, the machine was operated 6,600 hours and produced 60,500 units. During 2026, the machine was operated 6,050 hours and produced 52,800 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892.) 2025 2026 a. Straight-line LA $ LA LA $ LA b. Units-of-output C. d. e. Working hours Sum-of-the-years'-digits Double-declining-balance +A $ + +A +A +A On April 1, 2025, Vaughn Company received a condemnation award of $559,000 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway. The land and building cost $78,000 and $364,000, respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $208,000 On August 1, 2025, Vaughn purchased a piece of replacement property for cash. The new land cost $117,000, and the new building cost $520,000. Prepare the journal entries to record the transactions on April 1 and August 1, 2025. (Record journal entries in the order presented in the problem. 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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit The cost of equipment purchased by Bonita, Inc., on June 1, 2025, is $119,700. It is estimated that the machine will have a $10,500 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 54,600, and its total production is estimated at 728,000 units. During 2025, the machine was operated 6,600 hours and produced 60,500 units. During 2026, the machine was operated 6,050 hours and produced 52,800 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892.) 2025 2026 a. Straight-line LA $ LA LA $ LA b. Units-of-output C. d. e. Working hours Sum-of-the-years'-digits Double-declining-balance +A $ + +A +A +A On April 1, 2025, Vaughn Company received a condemnation award of $559,000 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway. The land and building cost $78,000 and $364,000, respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $208,000 On August 1, 2025, Vaughn purchased a piece of replacement property for cash. The new land cost $117,000, and the new building cost $520,000. Prepare the journal entries to record the transactions on April 1 and August 1, 2025. (Record journal entries in the order presented in the problem. 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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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