B. FIXED ASSETS DEPRECIATIONMachinery is purchased on July 1, 2019of the current fiscal year for $270,000. Itis expected to have a useful life for 5years and a residual value of $20.000.The company uses double-decliningbalance method.Instructions:Prepare the journal entries for:1. Depreciation for the year ofacquisition (Year-1) (2%)2. Depreciation for 2020 (Year-2)(2%)

Given: Cost of the Machinery = $270,000Useful life = 5 yearsResidual value = $20,000

Answered: B. FIXED ASSETS DEPRECIATION Machinery…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Computing Depreciation Expense for Change in Depreciation Method Phelps Company purchases equipment on January 1 of Year 1 for $28,800 which will be depreciated using the sum-of-years'-digits method. The equipment has a residual value of $4,800 and a useful life of three years. On January 1 of Year 2, Phelps changes its depreciation method for equipment to the straight-line method. What is depreciation expense for Year 2? Depreciation expense for Year 2: $ Check
Presented below is information related to equipment owned by Sheridan Company at December 31, 2020. Cost $9,630,000 Accumulated depreciation to date 1,070,000 Expected future net cash flows 7,490,000 Fair value 5,136,000 Assume that Sheridan will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the transaction on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2017 enter a debit amount enter a credit amount…
If a fixed asset, such as a computer, was purchased on January 1 for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for the monthly expense under straight-line depreciation is a. Depreciation Expense 100 Accumulated Depreciation 1,200 Accumulated Depreciation 1,200 100 b. Depreciation Expense 1,200 c. Accumulated Depreciation Depreciation Expense d. Accumulated Depreciation Depreciation Expense 1,200 100 100 O D O A
Depreciation methods. On July 1, 2020, Sport Company purchased for $3,600,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $150,000. Depreciation is taken for the portion of the year the asset is used. Instructions (a) Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the sum-of-the-years'-digits method. double-declining balance method. Sum-of-the-Years'-Digits Method 2020 2021 Equipment $3,600,000 $3,600,000 Less: Accumulated Depreciation _______ _______ Year-End Book Value _______ _______ Depreciation Expense for the Year _______ _______ Double-Declining Balance Method Equipment…
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $151,850 has an estimated useful life of 17 years, has an estimated residual value of $7,350, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year?$fill in the blank f27e84fc8020072_1 Feedback Book value is the initial cost of the fixed asset minus the accumulated depreciation. b. Assume that the equipment was sold on April 1 of the fifth year for $110,335. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. Depreciation Expense-Equipment Depreciation Expense-Equipment Accumulated Depreciation-Equipment Accumulated Depreciation-Equipment Feedback The depreciation account of the fixed asset being…
Subject-account
Owe
Partial-Year Depreciation Equipment acquired at a cost of $65,000 has an estimated residual value of $4,000 and an estimated useful life of 10 years. It was placed in service on April 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 b. Determine the depreciation for the current fiscal year and the following fiscal year by the double-declining-balance method. Depreciation Year 1 $fill in the blank 3 Year 2 $fill in the blank 4
On April 1, 2020, Saiqa Qureshi Industries purchased new equipment at cost of Rs. 325,000. Useful life of the equipment was estimated at 5 years, with residual value of Rs. 25,000. Required: Compute the annual depreciation expense for each year under each depreciation method listed below using half year convention method: i. Straight- line method (Using half year convention). ii. 150% declining-balance method (Using full year convention). iii. 200% declining balance method (Using half year convention method switching to straight line).
Peanut Company purchased a machine on January 1, 2019, for $100,000 with a $20,000 salvage value and an eight-year useful life. The company uses double-declining-balance depreciation. Required:Compute the depreciation expense for 2019 and 2020. Year DepreciationExpense 2019 $fill in the blank 1 2020 $fill in the blank 2
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