Red Robin has the following information about its property, plant, and equipment: CATEGORY Office Equipment Other Equipment Vehicles Office Furniture and Fixtures Building TOTAL *Purchased in January LIFE MACRS BOOK YEAR 1 5 7 5 79 39 60599 PURCHASES 10 22,714 10 65,805 5 127,365 10 27,410 50 496,300 739,594 YEAR 4 4,987 14,867 47,210 5,477 187,640 260,181 It did not purchase any PPE in Year 2 or Year 3. The current year is the first year that Red Robin has disposed of any PPE. It uses straight-line depreciation for book purposes, with a half-year convention. When it disposes of PPE, it records depreciation for a half year in the year of disposal.

Red Robin has the following information about its property, plant, and equipment: CATEGORY Office Equipment Other Equipment Vehicles Office Furniture and Fixtures Building TOTAL *Purchased in January LIFE MACRS BOOK YEAR 1 5 7 5 79 39 60599 PURCHASES 10 22,714 10 65,805 5 127,365 10 27,410 50 496,300 739,594 YEAR 4 4,987 14,867 47,210 5,477 187,640 260,181 It did not purchase any PPE in Year 2 or Year 3. The current year is the first year that Red Robin has disposed of any PPE. It uses straight-line depreciation for book purposes, with a half-year convention. When it disposes of PPE, it records depreciation for a half year in the year of disposal.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

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

Section19.3: Journalizing Depreciation Expense

Problem 1OYO

See similar textbooks

Similar questions

1 Required information [The following information applies to the questions displayed below) Solich Sandwich Shop had the following long-term asset balances as of January 1, 2024: Accumulated Depreciation Land Building Equipment Patent View transaction list Ma • Solich purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no. residual value. . The equipment is depreciated over a nine-year service life using the straight-line method with an estimated residual value of $10,000 The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 2 2. For the year ended December 31, 2024, record amortization expense for the patent. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account…
y Home CengageNOWv2 | Online teachin x takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogressfalse eBook Show Me How Calculator Print Item Partial-Year Depreciation Equipment acquired at a cost of $105,000 has an estimated residual value of $12,000 and an estimated useful life of 10 years. It was placed into service on May 1 of the current fiscal year, which ends on December 31. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 %24 6,200 Year 2 b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Depreciation Year 1 Year 2 Feedback TCheck My Work Asset cost minus residual value equals depreciable cost Book value is the asset cost minus accumulated depreciation. If an asset is used for only part of a year the depreciation is prorated based on the number of months the asset is in service.…
O Bookmarks < O 9.0 eBook Window Help ACCT-2010-DEM01 a. What was the depreciation fo e first year? $ Cash Show Me How Feedback v2.cengagenow.com Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $33,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $640. b. Assuming the equipment was sold at the end of year 2 for $8,130, determine the gain or loss on the sale of the equipment. Loss Check My Work 7 more Check My Work uses remaining. APR 4 . G C CengageNOWv2 | Online teaching and learning resourc... ? O All work saved. Check My Work Be sure to record the selling price of the fixed asset. If the company no longer has the fixed asset what account(s) would need to be eliminated? Was or a loss on the sale? tv Ⓒệa 20 Tue Apr 4 Email Instructor Save and…
Complete a depreciation schedule to enter fixed-asset data in an Excel table, calculate depreciation expense, and analyze the table data. (Chapter 6) Use this information, provided as of 1/31/2019, to create the depreciation schedule as of 1/31/2020 using appropriate headers and a table in which all pertinent information is displayed: Date of Salvage Useful Life Accumulated Value $2,000 $1.300 $900 Fixed Asset Cost Acquisition $32,000 $11.300 $6.900 (years) Depreciation $15,000 $2.000 $4.000 Automobile 1/31/2014 10 Store Fixtures 1/31/2018 Office Equipment 1/31/2015 6 CraftWorld uses the straight-line method of depreciation. In addition to the fixed assets shown, the company acquired new furniture on 1/31/2019. It cost $3,100, has an estimated four-year useful life, and an estimated salvage value of $300. Create the table so each of the six categories shown above is displayed in a separate column (note that some figures may appear different in your 1/31/2020 table than in the 1/31/2019…
2. Center Company acquired three intangible assets before 2020. The entity is preparing financial statements on December 31, 2020. Before that date, no formal financial statements had been prepared and the cost of intangible assets had been charged to operations when acquired. The following intangible assets were accounted for in this manner. Acquisition date January 1, 2016 July 1, 2017 January 1, 2018 Useful life Cost Copyright 1 Copyright 2 400,000 360,000 500,000 20 15 Patent 10 Required: Compute the total carrying amount of Intangible asset on December 31,2020. 3. At the beginning of current year, Outlandish Company entered into a franchise agreement with Jollibee Company to sell - Jollibee products for an indefinite period. The agreement provides for an initial fee of P20,000,000, P5,000,000 down upon signing of the contract and the balance in four equal annual payments every year-end. The entity signed 10% interest-bearing note for the balance. The collection of the note is…
On January 1, 2017, Epitome Company acquired the following d. Present the assets in the statement of financial position c. Prepare journal entry to record the piecemeal realization property, plant and equipment: Cost Useful life Land Building Machinery Equipment 5,000,000 25,000,000 10,000,000 3,000,000 25 10 At the beginning of 2020, a revaluation of property, plant and equipment was made by professionally qualified valuers. While no change in the useful life of the assets was indicated it was ascertained that replacement cost of the assets had increased by the following percentage: 100% 80% Land Building Machinery Equipment 50% 40% It was authorized that such revaluation be recorded in the accounts and that depreciation be recorded on the basis of revalued amount. Required: a. Prepare journal entry to record the revaluation on January 1, 2020. b. Prepare journal entry to record the depreciation for the current year. of the revaluation surplus. on December 31, 2020.
DS: Required information [The following information applies to the questions displayed below.] Evergreen Corporation (calendar year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Machinery Date Placed in Service October 25 February 3 Computer equipment Used delivery trucke Furniture August 17 April 22 *The delivery truck is not a luxury automobile. Asset Original Basis $ 84,000 20,500 33,500 167,500 b. What is the allowable depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation? MACRS depreciation
Required information [The following information applies to the questions displayed below.] Hero Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $86,000 451,000 227,900 205,000 Accumulated Depreciation Book Value $86,000 288,640 179,700 123,000 • Hero purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual Land Building Equipment Patent 0 value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. HERO SANDWICH SHOP December 31, 2024 $(162,360) (48,200) (82,000) • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 3. Calculate the book value for each of the…
B. D E G H. J K 3. Create the fixed asset supporting schedule for the following purchases: Two fixed assets are purchased during the year: Computer server on 5/4/2014 for $2,214.55 Office furniture on 11/17/2014 for $1,234.54 MACRS 150% is going to be the depreciation method used and depreciation adjusting entries are made at the end of each month. (check figure: total depreciation expense = 107.63) What will be the depreciation general journal adjusting entry on 12/31/2014?
Conceptual Question Identify whether or not each of the following items should be capitalized as intangible assets from the following list. Explain your reason with relevant accounting standard. Capitalised Not capitalized Employment costs of staff conducting research activities Cost of constructing a working model of a new product License purchased to permit production and sale of a product for ten years
Current Attempt in Progress These are selected account balances on December 31, 2022. Land $154500 Land (held for future use) 232500 Buildings 1045000 Inventory 242000 Equipment 680000 Furniture 147000 Accumulated 450000 Depreciation What is the total amount of property, plant, and equipment that will appear on the balance sheet? O $1809000 O $1576500 O $2551500 $2101500
D. AMORTIZATION OF INTANGIBLE ASSETS Harper Company, established in 2019, has the following transactions related to intangible assets. Date Transactions 1 Feb-19 Purchased patent (7-year useful life) $840,000 1 Apr-19 Goodwill purchased (indefinite useful life) $510,000 Instructions Prepare the necessary entries to record these intangibles. All costs incurred were for cash. b. Make the adjusting entries for any necessary amortization as of December 31, 2019. a.