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- Create four new fixed asset accounts – Account type: Fixed Assets, detail type: Buildings and Accumulated Depreciation (where appropriate), account names: Original Cost (a sub account of Building) and Accumulated Depreciation (a sub account of Building), and Land with Account type: Fixed Asset, detail type: Land. I saw a sample but don't we have to make a check also? How are the 4 accounts created also?How much should be recorded as the purchase price of theindividual PPE items: For items 13 to 17, identify the amount to be included as Buildingassuming the asset was constructed 13. Ventilating system added – P400,00014. Excavation cost of land to start construction – P350,000.15. Built‐in cabinets in the building cafeteria – P 100,00016. Refrigerator and food trolleys – P300,00017. After using the asset for two years, additional lighting wasinstalled – P500,000State whether each of the below is Capital Expenditure or Revenue Expenditure. 1 Purchase of new delivery vehicle 2 Payment of an invoice for advertising 3 Costs of clearing the site ready for an extension to the factory building 4 Signwriting on the outside of the new delivery vehicles 5 Redecoration of the office 6 Payment of delivery driver’s wages 7 Fuel for delivery vehicles 8 Fitting of shelving in delivery vehicle 9 Clay for making the pets toys 10 Wages of sales staff 11 Purchase of potters wheel for use in the business 12 Installation costs for the potters wheel 13 Wages os staff operating the potters wheel 14 Redecoration of store room 15 Payment of extra wages to own staff for fitting the alarm and cctv 16 Payment of architect fees for designing the proposed new shop 17 Purchase of new telephones system for…
- THE CLIENT HAD A BALANCE OF 80,000 FOR EQUIPMENT AND 20,000 FOR ACCUMULATED DEPRECIATION AT THE BEGINNING OF THE YEAR , WHAT WOULD THE BALANCE BE AT YEAR-END OF EQUIPMENT AND ACCUMULATED DEPRECTION GIVEN WHAT YOU KNOW THAT THE TOTAL DEPRECIATION EXPENSE FOR THE YEAR WAS 15,000?Please show hand written work A company is considering three pieces of equipment. Equipment A has a first cost of $80,000, AOC of $20,000, and a salvage value of $19,000 after 3 years. Equipment B will cost $210,000 with an AOC of $35,000 and a salvage of $40,000 after 9 years, and Equipment C has the first cost of S150,000 with an AOC of $28,000 and a salvage value of 30,000 after 6 years Which equipment should the company select at an interest rate of 10% per year?From the following information prepare adjusting entries in the general journal and enter them in the work sheet. Plant and equipmentto be depreciated are composed of the following: Assets Date Acquired cost estimatedusage or life salvage value depreciation method Building 7/1/2014 $306,000 25 years $20,000 sum-of-years' digits Truck #1 4/1/2014 28,000 60,000 miles 3,100 miles driven Truck #2 9/1/2015 33,000 60,000 miles 4,200 miles driven Lift Truck #1* 8/17/2011 7,900 10 years 900 straight-line Lift Truck #2 3/29/2015 4,500 10 years 500 straight-line Lift Truck #3 9/16/2016 5,000 10 years 500 straight-line Office Equipment 7/1/2016 32,800 7 years 2,000 straight-line Computer 12/19/2018 7,600 4 years 1,600 Double-decling *sold 12/31/18 Truck No. 1has been driven 45,000 miles prior to 1/1/18 and truck No. 2 has been driven 30,500 miles prior to 1/1/18. During 2018 truck No. 1 was driven 12000 miles and truck No. 2 was driven 16000 miles. Remember…
- A machine with a cost of $141,000 and accumulated depreciation of $90,500 is sold for $61,000 cash. The amount that should be reported in the operating activities section reported under the direct method is: Multiple Choice $61,000. $10,500. $50,500.Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending 12/31/X7. Required: In the general journal below, complete the year-end entry to record depreciation. Debit Credit Dec 31 ? 40,000 ? 40,000Not previously answered.
- Immediately after a used truck is acquired, a new motor is installed at a total cost of $3,850. Is this a capital expenditure or a revenue expenditure?For equipment that has a first cost of $17,500, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 -1,000 7,000 2 -1,200 5,000 -1,300 4,500 -2,000 3,000 -3,000 2,000 Determine the economic service life ESL, at /= 10% per year using factors. The economic service life ESL, is years with the AW = $- SEN 3 4 5On January 1, Mitzu Company pays a lump-sum amount of $2,750.000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $762,500, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $366,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,921,500. The company also incurs the following additional costs. Cont to denolish Building 1 Cost of additional land grading Cost to construet Building 3, havinga useful life of 25 yeara and a $402,00 salvage value Cost of new Land Improvemente 2, having a 20-year ueeful 1ife and no ealvage value $343, 400 191, 400 2,242,000 173,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Total Appralsed Value Total cost of acquisition Allocation of Purchase Price Apportioned Cost Appraised Value Land Building 2 Land…
