Equipment costing $36,000 with a 4-year useful life and an estimated $6,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 units in the first year. QS 8-8 (Algo) Recording depreciation journal entries LO P1 Record the journal entries for equipment depreciation for the first year under straight-line, units-of-production, and double-declining- balance. View transaction list Journal entry worksheet < A B с Record depreciation for the first year under straight-line. Transaction 1 Note: Enter debits before credits. General Journal Debit Credit

Equipment costing $36,000 with a 4-year useful life and an estimated $6,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 units in the first year. QS 8-8 (Algo) Recording depreciation journal entries LO P1 Record the journal entries for equipment depreciation for the first year under straight-line, units-of-production, and double-declining- balance. View transaction list Journal entry worksheet < A B с Record depreciation for the first year under straight-line. Transaction 1 Note: Enter debits before credits. General Journal Debit Credit

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Description: Equipment costing $36,000 with a 4-year useful life and an estimated $6,000 salvage value is acquired and startedoperating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 unitsin the first

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...

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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.
Required information Use the following information for the Quick Studies below. (Algo) Skip to question [The following information applies to the questions displayed below.]Equipment costing $21,600 with a 5-year useful life and an estimated $3,600 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 3,000 units of product during its life. It produced 450 units in the first year. QS 10-8 (Algo) Recording depreciation journal entries LO P1 Record the journal entries for equipment depreciation for the first year under straight-line, units-of-production, and double-declining-balance.
Equipment costing $60,000 with a 4-year useful life and an estimated $10,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 units in the first year. QS 8-7 (Algo) Computing depreciation under different methods LO P1 Compute depreciation for the first year under straight-line, units-of-production, and double-declining-balance.
Required 1 Required 2 Required 3 Compute depreciation for the first year under units-of-production. Select formula for the depreciation rate of Units of Production: Calculate the first year depreciation expense: Depreciation per unit Units in first year Depreciation in first year
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. Exercise 8-5 Units-of-production depreciation LO P1 Determine the machine's second-year depreciation using the units-of-production method. Units-of-production Depreciation Choose Numerator: Choose Denominator: Annual Depreciation Expense = Depreciation expense per unit %3D Year Annual Production (units) Depreciation Expense 2.
Units-of-Production Method A machine is purchased January 1 at a cost of $60,130. It is expected to produce 136,000 units and have a salvage value of $3,010 at the end of its useful life. Units produced are as follows: Year 1 11,000 Year 2 8,100 Year 3 12,100 Year 4 16,200 Year 5 11,500 Required: Prepare a schedule showing depreciation for each year and the book value at the end of each year using the units-of-production method. Units-of-Production Method Beginning Annual Ending Year Book Value Depreciation Book Value 1 $60,130 2 3 4 5
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] On April 1, Cyclone's Co. purchases a trencher for $302,000. The machine is expected to last five years and have a salvage value of $51,000. Exercise 8-11 Straight-line, partial-year depreciation LO C2 Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method. Choose Numerator: Choose Denominator: Annual Depreciation Annual depreciation Depreciation Expense Year Annual Depreciation Fraction of Year First year Second year
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Revision of Depreciation Equipment with a cost of $180,000 has an estimated residual value of $14,400, has an estimated useful life of 16 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. %$4 10,350 V b. Determine the book value at the end of the tenth year of use. %24 C. Assuming that at the start of the eleventh year the remaining life is estimated to be eight years and the residual value is estimated to be $10,500, determine the depreciation expense for each of the remaining eight years. %$4 Feedback
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