At December 31, 2018 Allarco Inc.'s balance sheet showed plant and equipment information as detailed in the schedule below. Allarco Inc. calculates depreciation to the nearestwhole month.Please complete the schedule. Round depreciation per unit of production to the nearest cent.Cost InformationDepreciationDescriptionPurchase DateEquipment November 1, 2016Depreciation Method Cost Salvage ValueStraight-line226,00010,000Double-declining-Machinery July 1, 201896,00010,000Life10 years5 yearsAccum. Dep. Dep. Expense Accum. Dep.Dec. 31, 2018 for 2019Dec. 31, 2019balanceTrucksSeptember 5, 2017Units-of-production416,800 10,0001,017,000 milesThere have been no disposals or subsequent capital expenditures on the asset since the date of purchase.The miles the truck was actually driven were as follows:2017: 408,0002018: 303,0002019: 212,000For simplicity, assume that the asset is depreciated as an individual item and will not be broken down into parts and depreciated.

Equipment (Straight-Line Method)Step 1: Determine the annual depreciation rate.Formula:…

Answered: At December 31, 2018 Allarco Inc.'s…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 5AP

See similar textbooks

Similar questions

When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
At December 31, 2018 Weber Inc.'s balance sheet showed plant and equipment information as detailed in the schedule below. Weber Inc. calculates depreciation to the nearest whole month. Please complete the schedule. Round depreciation per unit of production to the nearest cent. Cost Information Description Purchase Date Depreciation Method Cost Salvage Value Life Double-declining- Machinery May 2, 2018 240,000 10,000 10 years balance Depreciation Accum. Dep. Dec. Dep. Expense Accum. Dep. Dec. 31, 2018 for 2019 31, 2019 There have been no disposals or subsequent capital expenditures on the asset since the date of purchase. For simplicity, assume that the asset is depreciated as an individual item and will not be broken down into parts and depreciated.
Honesty Manufacturing purchased a machine on 1 July, 2017. The following financial information has been collected to calculate the depreciation at 30 June 2019: Cost $58,500 Expected salvage value $1,000 Estimated useful life in years 5 Estimated useful life in hours 200,000 Hours used in 2020 is: 48,000 Required: Calculate the depreciation expense of the machine for the year ended 30 June 2019 using: a) Straight-line method b) Unit of activity method c) Declining balance method using double straight-line rate
Dengar
The company has the following data of the non-current assets. Asset Original Cost Residual Value Estimated Life Depreciation Method Machine A (purchased on 1 Jan. 2017 $32,000 $4,000 5 years Straight-line Machine B (purchased on 1 Jan. 2021) 36,000 3,500 5 years Double-declining balance Machine C (purchased on 1 Jan. 2019) 52,000 4,000 5 years Double-declining balance Machine D (purchased on 1 Jan. 2018) 360,000 96,000 5 years Unit-of-Production method Additional information: For machinery D estimated units produced is 120,000 unit, Machine D is used to produce 40,000, 25,000, 35,000 units in the first, second, and third year respectively, it is used to produce 5,000 units during 1 Jan 21 to 31 Mar 21 1 Apr. 21 the company sold Machine A (purchased on 1 Jan. 2017) for $12,000 cash, Machine B (purchased on 1 Jan. 2021) for $ 25,000, and Machine C (purchased on 1 Jan. 2019) for $24,000 And 1 Apr. 21…
Frey, Inc. purchased a machine for $600,000 on January 2, 2017. The machine has an estimated useful life of 4 years and a salvage value of $100,000. The machine is being depreciated using the sum-of-the-years'-digits method. The December 31, 2018 asset balance, net of accumulated depreciation, should be: Select one: a. $250,000 Ob. $350,000 c. $280,000 Od. $320,000 $450,000
Record the journal entries for Depreciation and Disposal each machine .
Terry Wade, the new controller of Pronghorn Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date (a) Acquired Jan. 1, 2016 Jan. 1, 2017 Cost $807,000 Revised annual depreciation $ 106,000 Accumulated Depreciation Jan. 1, 2022 $115,800 20,360 Compute the revised annual depreciation on each asset in 2022. Building $ Useful life (in Years) Old Proposed 40 25 50 Warehouse 20 All assets are depreciated by the straight-line method. Pronghorn Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Salvage Value Old $35,000 4,200 Proposed $66,400 24,140
Victor Mineli, the new controller of Splish Brothers Inc. has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date Acquired Jan 1, 2014 Jan 1, 2017 Cost $824,000 107,000 Accumulated Depreciation Jan. 1, 2022 $156,800 Revised annual depreciation $ Useful life (in years) Building Old 40 20.540 25 $ Proposed 58 20 Warehouse Salvage Value Old Proposed $37,200 All assets are depreciated by the straight-line method. Splish Brothers Inc. uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life) Compute the revised annual depreciation on each asset in 2022. (Round answers to O decimal places, e.g. 5.125.) $40,000 4,300 12.960 SUPPORT
Required: Prepare the journal entry at 31 December 2021 to record the depreciation for 2021. Show your workings.
Identify depreciation methods used Moyle Co. acq= Tanuary 1, 2013, at a cost of $800,000. The machine js useful life, with a salvage value of $50,000. The machine is c 300,000 units of product in its lifetime. Actual production wa units in 2013; 40,000 units in 2014; 80,000 units in 2015; 50,0 expecte 70,000 units in 2017.
Victor Minell, the new controller of Sheridan Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date Acquired Jan 1, 20 Jan 1, 2017 Cost $810,000 Revised annual depreciation $ eTextbook and Media List of Accounts Dec. 31 110,000 Compute the revised annual depreciation on each asset in 2022 Accumulated Depreciation Jan. 1, 2022 $153,200 Building Date Account Titles and Explanation Useful life (in years) Old Proposed 40 21,180 25 All assets are depreciated by the straight-line method. Sheridan Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life.) 58 20 Warehouse Salvage Value Old $44,000 Debit 4,100 Prepare the entry to record depreciation on the building in 2022. (Credit account…

SEE MORE QUESTIONS

Recommended textbooks for you

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Accounting: The Impact on Decision Make…

Accounting

ISBN:

9781305654174

Author:

Gary A. Porter, Curtis L. Norton

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS