On January 1, 2020, Covid 19 Company reported the following account balances relating to property, plant and equipment: Land 2,000,000.00 Building 15,000,000.00 Accumulated Depreciation 3,750,000.00 Machinery 3,000,000.00 Accumulated Depreciation 1,500,000.00 Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2010. The straight line method is used.
Q: Where is 18% came from??
A: Yield is the benefit derived from an investment or cost incurred on a product. It can be expressed…
Q: Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital…
A: As per the information provided below: Capital contributions : Ben Conway - $266,000 Ida Chan -…
Q: Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000…
A: Productivity- Productivity refers to different measures of production efficiency. A productivity…
Q: Mutual Inc, a 10 million dollar company, bought a domain subscription for $70 using a credit card.…
A: The depreciation is related to a decrease in the value of fixed assets. The tangible assets are…
Q: 53. Tea Tree Ltd has acquired some government bonds on 1 July 2022. The government bonds will…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Details of a company's first two years of operations are shown: Year 1 Year 2…
A: The net income is calculated using various methods as absorption costing, variable costing. Using…
Q: Item 1. Evaporated Milk 2. Sugar 3. Ingredient Cost (IC= 1+2) 4. Processing Cost (PC = 20% of IC )…
A: Notes to Answer: Evaporated Milk = Given 1 Can = 54.00 / can Sugar = 1/2 cup = 65.00 per cup =…
Q: Iona Company, a large printing company, is in its fourth year of a five-year, quality improvement…
A: As per the guidelines, the solution for the first three-part has been provided. For obtaining…
Q: Kabundukan Dairy makes cheese, which it sells at local supermarkets. The fixed monthly cost of…
A: Given: Fixed Cost - 4000 Variable Cost - 0.21 per pound Selling price - 0.75 per pound Unit can be…
Q: If you were an Investor, what would you consider in investment: Net Present Value or Payback…
A: When an investment is made the investor uses various tools to evaluate an investment. The investors…
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Solution 5: Under percentage of completion method of revenue recognition for long term construction…
Q: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…
A: Formula used: Depletion per ton = ( Asset cost - Salvage value ) / Total estimated Tons
Q: Jeremy earned $101,000 in salary and $7,000 in interest income during the year. Jeremy's employer…
A: Regulation- The laws and regulations that govern the financial services industry are referred to as…
Q: 108,000 units next year. J
A: Given: Selling price 654.00 Direct materials 216.00 Direct labour 108.00 Production overhead 54.00…
Q: The following transactions took place at Carrington Company Limited during the past year: Equipment…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: A 2,833 units $200 80 Number of units Sale price per unit Variable costs per unit Calculate:…
A: The contribution margin refers to the sale price over the variable cost of a product. Variable cost…
Q: Cash $371 Accounts Payable $268 Accounts Receivable $429 Expenses $100 What is the amount of total…
A: Introduction: Trial Balance: All the final ledger accounts balances are posted in Trial balance to…
Q: Blue Company, is trying to assess the feasibility of acquiring an accounting system for $10,000,000.…
A: Book rate of return is calculated to identify potential profitability of the project in which an…
Q: Which of the following is correct when land costing $23,000 is sold for $31,000? The land was a…
A: Cash received = $31,000 Cost of the land = $23,000 Profit on sale of land = $8,000
Q: Is Standard costing still a useful tool for the Management accountant? How could it be adapted to…
A: Costing Accounting- A cost accounting system is a type of perpetual inventory accounting system that…
Q: For the price per 200 gram, why its total cost is still 528.72?
A: Item Inclusion (kg) Unit Cost Per Kg (PhP) Total Cost (PhP) 1. Raw Milk 10.00 35.00 350.00 2.…
Q: a tractor at Given that a farm entrepreneur purchases a price of K150,000,000 with an expected life…
A: The ownership cost refers to the total costs incurred by the owners in respect of owning an asset.…
Q: reference to the importance of the three certainties to be satisfied before a Mauritian Court will…
A: Private Express Trust refers to the form of the declaration made by the person who wishes to…
Q: preti is working at the local private hospital as an admin assistant. She would like a career in…
A: Self-education expenses are allowed as a deduction if such education is relevant to the earnings of…
Q: Caleb's duplex sold at a foreclosure auction for $140,000. At the time of foreclosure, he had not…
A: A loan is an amount given by the lender to the borrower at an agreed interest rate for a defined…
Q: Amirul Sdn Bhd, a pen manufacturer, identified that per pen its labour cost was RM5 and its…
A: A flexible budget is one based on different volumes of sales.it flexes the static budget for each…
Q: Net income $318,000 Preferred dividends $18,000 Shares of common stock outstanding 40,000 Market…
A: Formula: EPS on common stock = ( Net income - preferred dividends ) / Outstanding common shares
Q: Diana Mark is the president of ServicePro, Incorporated, a company that provides temporary employees…
A: Journal Entries: Simple journal entries are a form of accounting entry used in double-entry…
Q: Calculate the corporate income tax for Quarter 2 from the following income statement. Use a…
A: The net profit is calculated as operating profit less income tax. Net profit = Operating profit -…
Q: 2,833 units Number of units Sale price per unit $200 Variable costs per unit 80 Calculate:…
A: Introduction: Contribution margin per unit: Deduction of variable cost per unit from Sales price per…
Q: On November 3, the Milwaukee Bucks sold a six-game pack of advance tickets for $300 cash. On…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: With the following data, compute the NET FUTA Tax. Gross FUTA Tax DUE $ 6,750 Credit against FUTA…
A: Introduction: Net FUTA tax: Deduction of Credit against FUTA from Gross FUTA tax due derives the net…
Q: What is the criteria to recognize revenue?
A: Introduction: Taxes, customs charges, earnings from state-owned firms, capital revenues, and foreign…
Q: b. Interest revenue accrued, $2,700. Accounts b. Interest Receivable Interest Revenue Journal Entry…
A: Journal entries are the basic method of recording financial transactions. These are useful for…
Q: (Ignore income taxes in this problem.) The management of Rose Corporation is investigating the…
A: Additional cash flow per year will be calculated by dividing the net present value of the investment…
Q: Here are selected 2022 transactions of Sheffield Company. Jan. 1 Retired a piece of machinery that…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Calculate Cost of Goods sold from the following? Opening stock OMR 20000, Carriage outwards OMR…
A: Introduction: Cost of goods sold: Deduction of Ending inventory from beginning inventory and…
Q: 5. Kabundukan Dairy makes cheese, which it sells at local supermarkets. The fixed monthly cost of…
A: In this question, we need to compute the net operating income for both the situation. If the profit…
Q: Human resource audits are designed to summarize an individual employee's skills, abilities, and…
A: Auditing is an independent examination of financial information of organization whether profit…
Q: Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur…
A: Cash Collection from Accounts Receivables: The process of cash collecting is within the purview of…
Q: On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was…
A: To a change in the estimate of residual value and remaining useful life of an asset, the prospective…
Q: The adjusted trial balance for CYBER Ltd. at December 31, 2022, is shown below: CYBER LTD. Adjusted…
A: In this question, we are required to prepare closing journal entries and also prepare the post…
Q: Boxes are stacked into a crate 24 boxes wide, 16 boxes high, and 30 boxes long. How many boxes total…
A: Inventory audit includes such calculation of inventory during its process of 'Physical verification'…
Q: 1. Table of depreciation per year using the straight-line method and the declining balance method 2.…
A: Given in the question: Machine Price = Rp 20,000,000 Machine Purchase Date = January 2013 Discount…
Q: What is Vertical Analysis in Financial Analysis?
A: Financial Statement- Financial statements describe an entity's financial activity and condition. At…
Q: and Lyon are forming a partnership. Watts invest 500 and Lyon invests $49,500. The partners agre…
A: The partners working in partnership firm together shares the profits and losses on the basis of…
Q: Rocco's manufactures 1,600 units of product per year. The cost of materials for these products are…
A: The economic order quantity is the ideal size of orders (units) that company can accept from the…
Q: Prepare a partial income statement, beginning with income before income taxes.
A: The income statement is one of the financial statements of the business entity. It reports…
Q: Aces Inc makes identical accessories for bathrooms and uses process costing. The flow of production…
A: Under the FIFO method, beginning units are completed first.
Q: The following costs relate to Antonio Industries for the last quarter: Conversion cost Direct…
A: Introduction: Prime costs: Sum of both direct materials and direct labor cost derives the prime…
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
- Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings, 175,000; Accumulated Depreciation: Buildings, 57,500; Investment in Held-to-Maturity Bonds, 12,000; Equipment, 95,000; and Accumulated Depreciation: Equipment, 25,000. Prepare the property, plant, and equipment section of Ozs year-end balance sheet.The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation 0 Land Land improvements Building Equipment Automobiles Plant Asset $ 395,000 193,500 1,590,000 1,248,000 159,000 Transactions during 2021 were as follows: $ 54,000 395,000 450,000 116,500 a. On January 2, 2021, equipment were purchased at a total invoice cost of $305,000, which included a $6,400 charge for freight. Installation costs of $36,000 were incurred. b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $34,000. The fair value of the building on the day of the donation was $21,400. c. On May 1, 2021, expenditures of $59,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On…On January 1, 2021, Peaceful Company reported the following account balances relating to property, plant and equipment: Land, P 4,000,000; Building, P 30,000,000, with Accumulated Depreciation of P 7,500,000. Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2021. The straight-line method is used. On January 1, 2021, the entity decided to revalue the property, plant and equipment. On such date, competent appraisers submitted the following (at replacement cost): Land, P10,000,000; Building, P 50,000,000. What is the revaluation surplus on January 1, 2021? P 15,000,000P 6,000,000P 30,000,000P 21,000,000
- The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation $ Land Land improvements Building Equipment Automobiles Plant Asset $ 380,000 195,000 1,650,000 1,164,000 165,000 Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $275,000, which included a $5,800 charge for freight. Installation costs of $30,000 were incurred. b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $22,000. The fair value of the building on the day of the donation was $16.000. c. On May 1, 2021, expenditures of $53,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On November 1, 2021, Pell acquired a…The following data relate to the acquisition of an equipment owned by BUSS Corporation. Acquisition Date- October 1,2019 Cost$125,000 Estimated residual value - $5,000 Estimated useful life - 10 years Estimated service hours - 10,000 Estimated output in units- 24,000 Under the uniform charge method of depreciation, what is the asset's carrying value as of December 31,2022?he plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Plant Asset Accumulated Depreciation Land $510,000 - Land Improvements 260,000 61,000 Building 2,300,000 366,000 Equipment 1,190,000 421,000 Automobiles 230,000 128,000 Transactions during 2021 were as follows: On January 2, 2021, equipment were purchased at a total invoice cost of $340,000, which included a $7,100 charge for freight. Installation costs of $43,000 were incurred. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $35,000. The fair value of the building on the day of the donation was $22,500. On May 1, 2021, expenditures of $66,000 were made to repave parking lots at Pell’s plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn’t provide future benefits beyond those originally…
- The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Vaughn Manufacturing at the end of 2022 are shown here. Equipment Beg. bal. 100,000 Disposals 27,500 Acquisitions 52,000 End. bal. 124,500 Accum. Depr.—Equipment Disposals 6,375 Beg. bal. 55,625 Depr. exp. 15,000 End. bal. 64,250 In addition, Vaughn Manufacturing’s income statement reported a loss on the disposal of plant assets of $4,375. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment $enter cash flow from sale of equipment in dollarsThe plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Plant Asset Accumulated Depreciation $ 480,000 245,000 2,150,000 1,184,000 215,000 Land Land improvements Building Equipment Automobiles Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight Installation costs of $40,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, expenditures of $63,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On…At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Plant Asset Accumulated Depreciationand Amortization Land $ 178,000 $ — Land improvements — — Buildings 1,650,000 331,900 Equipment 1,275,000 320,500 Automobiles and trucks 175,000 103,325 Leasehold improvements 222,000 111,000 Depreciation methods and useful lives:Buildings—150% declining balance; 25 years.Equipment—Straight line; 10 years.Automobiles and trucks—200% declining balance; 5 years, all acquired after 2017.Leasehold improvements—Straight line.Land improvements—Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information: On January 6, 2021, a plant facility consisting of land and building was acquired from King Corp. in exchange for 28,000 shares of Cord's common stock. On…