On September 1, a company purchased equipment for $25,000. The equipment's estimated salvage value is $3,400. The machine will be depreciated using straight-line depreciation and a four year life. If the company prepares annual financial statements on December 31, the appropriate adjusting journal entry to make on December 31 of the first year would be a O $1.800 debit to Depreciation Expense and a $1.800 credit to Accumulated Depreciation. O $1,800 debit to Accumulated Depreciation and a $1,800 credit to Depreciation Expense. O $5,400 debit to Depreciation Expense and a $5,400 credit to Accumulated Depreciation. O $5,400 debit to Accumulated Depreciation and a $5,400 credit to Depreciation Expense. O $1,800 debit to Equipment and a $1,800 credit to Cash.

On March 1, fixtures and equipment were purchased for $5,000 with a downpayment of $2,000 and a $3,000 note, payable in one year. Interest of 6% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 9 years with no expected salvage value. [Note: Record the complete March 1 entry for the equipment purchase first, the complete March 31 depreciation adjusting entry second, and the complete March 31 interest adjusting entry third.] Account: Cash Dollar amount: -2000 Account: Fixtures and Equipment Dollar amount: 5000 Account: Notes Payable Dollar amount: 3000 Account: Fixtures and Equipment v Dollar amount: Account: Retained Earnings Dollar amount: Account: Interest Payable Dollar amount: Account: Retained Earnings Dollar amount: Account: Leave Blank Dollar amount:

Redhouse Corporation purchased a truck for $20,000 on January 1, 2023. The truck has an estimated salvage value of $5,000 and is expected to last five years. Redhouse Corporation prepares adjusting entries only at year-end. Which of the following is the necessary adjusting entry on December 31, 2023? (See your Chapter 3 notes, page 6) Debit Depreciation Expense—Trucks for $4,000, and credit Accumulated Depreciation—Trucks for $4,000. Debit Depreciation Expense—Trucks for $5,000, and credit Accumulated Depreciation—Trucks for $5,000. Debit Accumulated Depreciation—Trucks for $3,000, and credit Depreciation Expense—Trucks for $3,000. Debit Depreciation Expense—Trucks for $3,000, and credit Accumulated Depreciation—Trucks for $3,000. Debit Accumulated Depreciation—Trucks for $4,000, and credit Depreciation Expense—Trucks for $4,000. Debit Accumulated Depreciation—Trucks for $5,000, and credit Depreciation Expense—Trucks for $5,000.

Cheers Delivery Company purchased a new delivery truck for $48,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 120,000 miles and a residual value of $3,000. The truck was driven 10,000 miles in 2019 and 16,000 miles in 2020. Cheers computes depreciation expense to the nearest whole month.   See attached questions.

Lucky Lure Co. purchased a machine on October 1, 2018 for $125,000. It has a $15,000 residual value and a 10- year useful life. On July 1, 2020 the machine sold for $79,500. The company uses the double-declining-balance method of depreciation. The company fiscal year end is December 31. Instructions Prepare the journal entries for 2018 through 2020. Š A▾ B I

A company purchased factory equipment for $88,000 on January 1. It is estimated that the equipment will have a $8000 salvage value at the end of its estimated 5-year useful life. If the company uses the straight-line method of depreciation, the balance is Accumulated depreciation at the end of the fifth year would be

Podey Company has a machine that originally cost $20,000, has accumulated depreciation of $14,000 at the beginning of the current year, and is being depreciated at $2,000 per year with the straight-line method. If the company sells the machine for $2,400 on September 30, it first records a depreciation expense of $500. $1,500. $3,600. $6,000.

Vita Water purchased a used machine for $122,000 on January 2, 2020. It was repaired the next day at a cost of $9,625 and installed on a new platform that cost $1,775. The company predicted that the machine would be used for six years and would then have a $17,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year’s depreciation was recorded on December 31, 2020. On September 30, 2025, it was retired.Required:1. Prepare journal entries to record the purchase of the machine, the cost of repairing it, and the installation. Assume that cash was paid.1) Record the purchase of the machine 2) Record the capital repairs on the machine  3) Record installation of the machine   2. Prepare entries to record depreciation on the machine on December 31 of its first year and on September 30 in the year of its disposal. (Round intermediate calculations to the nearest whole dollar.) 1) Record the depreciation 2) Record the partical year's…

Cheadle Company purchased a fleet of 20 delivery trucks for $8,000 each on January 2, 2019. It decided to use composite depreciation on a straight-line basis and calculated the depreciation from the following schedule:                 1. Prepare the journal entries necessary to record the preceding events.        2. Assume that the company expected all the trucks to last 4 years and be retired for $1,600 each. Using group depreciation, prepare journal entries for all 6 years, assuming the company retired the trucks as shown by the latter schedule.

Blue Company purchases equipment on January 1, Year 1, at a cost of $600,000. The asset is expected to have a service life of 12 years and a salvage value of $54,000. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to 0 decimal places, e.g. 5,125.) Depreciation for Year 1   $enter a dollar amount rounded to 0 decimal places Depreciation for Year 2   $enter a dollar amount rounded to 0 decimal places Depreciation for Year 3   $enter a dollar amount rounded to 0 decimal places Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method. Depreciation for Year 1   $enter a dollar amount Depreciation for Year 2   $enter a dollar amount Depreciation for Year 3   $enter a dollar amount Part 3     Compute the amount of depreciation for each of Years 1 through 3 using the…