EGR310 HW Set 4

B. D E G H. J K 3. Create the fixed asset supporting schedule for the following purchases: Two fixed assets are purchased during the year: Computer server on 5/4/2014 for $2,214.55 Office furniture on 11/17/2014 for $1,234.54 MACRS 150% is going to be the depreciation method used and depreciation adjusting entries are made at the end of each month. (check figure: total depreciation expense = 107.63) What will be the depreciation general journal adjusting entry on 12/31/2014?

S.olivia Activity No. 3 assets. The following invoice displays the cost of furniture you have bought. Th items have an estimated salvage value of $5,000, and it is expected that will be used for 7 years. Design the depreciation schedule for the a Qatar Machinery QBN 48741 568 952 588 Salwa Road, Al Sadd, Doha, Qatar 3358 9625 Ashraf@busmachines.com Qty 11 18 40 5 Year Customer Information: Doha Product Description Boardroom Table Chairman chair Desk cupboard 00 File stand 025 injoj duz 300 T2D T2D+lotoidu2 noitollotant Invoice: tripisy tolonel Opening book value Annual Depreciation amount Invoice Invoice Number: A782528AM Invoice Date: 09 October 2013 Travel Agenvy Amount Each 800 500 nor 350 M29 400 bipopque 250 brote sl Sub total GST 10% Subtotal + GST Installation Freight Grand Total Amount Closing book value 2000 1500 Accumulated depreciation amount

Calculate the depreciation using the Straight-Line Method for a company that buys a piece of equipment for $12,500. The equipment has an expected life of 10 years and a salvage value of $800. a. $1000 O b. $1100 O c. $1240 O d. $1170

Mohr Company purchases a machine at the beginning of the year at a cost of $28,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $2,000 salvage value. Depreciation expense in year 2 is: Multiple Choice $5,600. $5,200. $11,200. Prev 1 of 10 Next > 9: 96% 3/2 ere to search

A lumber company purchases and installs a wood chipper for $200,000. The chipper is classified as MACRS 7-year property. The chipper’s useful life is 10 years. The estimated salvage value at the end of 10 years is $25,000. Using MACRS depreciation, compute the first-year depreciation. a. $17,500.00 b. $20,000.00 c. $25,007.50 d. $28,580.00.

Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $261,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $30,000. Exercise 8-7 (Algo) Straight-line depreciation LO P1 Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Choose Numerator: Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Depreciation Choose Denominator: Annual Depreciation = = Annual Depreciation Expense Depreciation expense Year-End Book Value

TB MC Qu. 08-168 Mohr Company purchases a machine at the... Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. Depreciation expense in year 2 is

TB MC Qu. 08-173 Martin Company purchases a machine... Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value. Depreciation expense in year 4 is:

S7 A F H. K 7 Calculate the depreciation on an asset that originally cost $812,000, has a salvage value of $52,000 8 and an estimated useful life of 6 years. 9. 10 You only need to record the FIRST 4 years using each method 11 SHOW YOUR CALCULATIONS. 12 13 STRAIGHT LINE 14 YEAR1 15 YEAR 2 16 YEAR 3 17 YEAR 4 18 19 20 Double Declining Balance 21 22 YEAR1 23 YEAR 2 24 YEAR 3 25 YEAR 4 26 27 28 Sum of the Years Digits 29 30 YEAR1 31 YEAR 2 32 YEAR 3 33 YEAR 4 Sheet1 Ready

Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $272,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $20,000. Exercise 8-8 (Algo) Double-declining-balance depreciation LO P1 Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. (Enter all amounts as positive values.)

ces TB MC Qu. 08-173 (Static) Martin Company purchases a machine.... Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value. Depreciation expense in year 4 is: Multiple Choice $15,000. $13,750. $55,000. $60,000. О $0.

Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The company has determined that the salvage is $2,000, and the life of the asset is five years. Depreciation is to be straight-line. Journalize the entry to record depreciation for the first year of the asset’s life:   Question 6 options:   DR Accumulated Depreciation     14,000      CR Depreciation Expense                14,000 ________________________________________   DR Depreciation Expense          14,000      CR Accumulated Depreciation          14,000 ________________________________________   DR Accumulated Depreciation     14,400      CR Depreciation Expense                14,400 ________________________________________   DR Depreciation Expense          14,400      CR Accumulated Depreciation          14,400

Comparison of Depreciation Methods P7.                                                                                                 Bao Wao Designs Inc. purchased a computerized blueprint printer that will assist in the design and display of plans for factory layouts. The cost of the printer was $22,500, and its expected useful life is four years. The company can probably sell the printer for $2,500 at the end of four years. The printer is expected to last 6,000 hours. It was used 1,200 hours in year 1; 1,800 hours in year 2; 2,400 hours in year 3; and 600 hours in year 4. Required Compute the annual depreciation and carrying value for the new blueprint printer for each of the four years (round to the nearest dollar where necessary) under each of the following methods: (a) straight-line, (b) production, and (c) double-declining balance. If the printer is sold for $12,000 after year 2, what would be the gain or loss under each method? Accounting Connection ▶ What conclusions can you…

1. Mainland purchased a machine for $85,000 on 1 January 20x7 and assigned it a useful life for 10 years. On 31 March 20x9 it was revalued to $93,000 with no change in useful life. a) Complete the table below and show your workings. ASSETS Property (Acc. Depreciation) NBV OWNER'S EQUITY Revaluation surplus INCOME STATEMENT Depreciation expense Comprehensive income Gain on revaluation of property Jan 1, x7 Dec 31, x7 Dec 31, x8 For 20x8 For 20x9 Mar 31, x9 Mar 31, x9 Before revaluation After revaluation For the first 3 months of 20x9 Before revaluation After revaluation b) Show all the journal entries related to this equipment during 20x9. Dec 31, x9 For the last 9 months of 20x9

O One of construction company purchased a construction machine 195,000$ having useful life of 12 years. How to account the level of depreciation under Sum of years Digits Method? In term of depreciation, give summery notification about each method within graphical examples?

1.Reta corporation purchased a machine for 50,000.  Useful life=10 years Residual value=2,000 Find out the amount of depreciation under Straight line deprecition method. Also find the rate of depreciation? 2.State any two advantages of Straight line deprecition method?

A company purchased new manufacturing equipment that is considered 3-year property using MACRS-GDS depreciation. The equipment has a cost basis of $200,000. Using the depreciation percentages given, the book value at the end of year 3 for this equipment is most nearly: Recovery Year 3-Year Class 33.33 44.45 14.81* 741 4. O $185,000 O $63.000 O $15,000 O so

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $257,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $24,00O. Exercise 8-8 Double-declining-balance depreciation LO P1 Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. (Enter all amounts positive values.) Depreciation for the Period End of Period

ON 1 Majan Company purchased a printer for $6,480 on answered February 1, 2011. The company expects to use the printer lout of 1.00 for 5 years. It has no residual value. Monthly depreciation g question expense on the asset is Select one: a. $108. b. $6,480. C. $0. d. $1,296. TION 2 Accrued expenses are ret answered ced out of 1.00 Select one: lag question a. Incurred but not yet paid or recorded. b. Paid and recorded in an asset account before they are used or consumed. c Incurred and already paid or recorded. d. Paid and recorded in an asset account after they are used or consumed.

Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] aw 11 On April 1, Cyclone Company purchases a trencher for $304,000. The machine is expected to last five years and have a salvage value of $52,000. Exercise 8-12 (Algo) Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.) Annual Period Beginning of Period Book Value Year 1 Year 2 Depreciation for the Period Depreciation Partial Rate Year Depreciation Expense

Required information Problem 7-58 (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Quick Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Quick Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year 1 2 Year 1 2 3 4 Problem 7-5B (Algo) Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations. Round answers to the nearest whole dollar.) 3 4 Total Hours Used 2,800 2,000 2,000 3,200 $ QUICK COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense 0 Accumulated Depreciation Book Value

Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below] NewTech purchases computer equipment for $261,000 to use in operating activities for the next four years at estimates the equipment's salvage value at $30,000. Exercise 8-8 (Algo) Double-declining-balance depreciation LO P1 Prepare a table showing depreciation and book value for each of the four years assuming double-declining balance depreciation, Note: Enter all amounts as positive values. Year Year 1 Year 2 Year 3 Year 4 Total Depreciation for the Period Beginning-Year Depreciation - Book Value Rate Annual thepreciation 3 End of Period Accumulated Depreciation Year-End Book Valus

A company purchased facrory equipment on August 1,2on, for R0 Boo.000 It is estimated that the EQUIDH will have a RO 50.000 residual value at the end of its 10-year useful life Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31. 2on, is Select one a RO43.750 O BRO37.500 CRO75,000 d RO31.250

10. DEPLORABLE BAD Co. acquired a machine on October 5, 20x1 for a total cost of $160,000. The machine was estimated to have a useful life of 4 years and a salvage value of $10,000. DEPLORABLE BAD Co. uses the sum-of-the-years' digits method and prorates full-year depreciation to the nearest month. DEPLORABLE BAD Co. sold the machine on December 27, 20x2 for $40,000. How much is the gain (loss) on the sale? a. (48,750) b. 48,750 c. (32,250) d. 32,250

! Required information Problem 7-5B (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Quick Copy purchased a new copy machine. The new machine cost $112,000 including installation. The company estimates the equipment will have a residual value of $28,000. Quick Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year 1 Hours Used 3,000 2 1,700 3 1,800 4 2,200 Problem 7-5B (Algo) Part 2 2. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in only two years.) (Do not round your intermediate calculations.) QUICK COPY Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Year Expense 1 2 3 4 Total Accumulated Book Value Depreciation

A. Br1,600 B. Br2,000 C. Br5.600 D. Br14,400 6. On July 1. 20X1, Clem Company purchased lactory equipment for br50,000, Residual value was estimated to be br2.000. The equipment will be depreciated over ten years using the sum-of- the-years'-digits depreciation method. Clem has a December 31 year-end, and during 20X1, one- half of a year's depreciation expense was recorded. How much depreciation expense should be recorded for 20X2? (round computations to the pearest dollar) A. Br7,855 do00 B. Br8,291 C. Br8,636 D, Br8,727 7. Which of the following expenditures incurred in connection with the acquisition of equipment is not a proper charge to the asset account? A) Freight or transportation costs. B) Cost of test runs to ready the machine for operation C) Taxes and tariffs D) Cost of vandalism E) B and D 8. If the Double-declining depreciations rate of a plant asset is 50%, then its estimated life will be: A. 50 years. B) 10 years C) 5 years D) 4 years E) None of the above Part II:…

On January 1, 20X1, your company purchases for $550,000 a machine with an estimated useful life of 10 years and a salvage value of $50,000. Using SYD depreciation, the 20X2 depreciation expense is: $18,182 $81,818 $90,000 $200,000