Sheridan's Repair Service uses the straight-line method of depreciation. The company's fiscal year-end is December 31. The followingtransactions and events occurred during the first three years.Purchased equipment from the Equipment Center for $7,900 cash plus sales tax of $580, and shipping costsof $490.2021July 1Nov. 3Incurred ordinary repairs on computer of $280.Dec. 31Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $450.2022Dec. 31Recorded 2022 depreciation.Paid $2,900 fora major upgrade of the equipment. This expenditure is expected to increase the operatingefficiency and capacity of the equipment.2023Jan.1Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in theproblem.)Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in theproblem.)DateAccount Titles and ExplanationDebitCredit2021 July 1EquipmentCash2021 Nov. 3Cash2021 Dec. 31Depreciation Expense2022 Dec. 31Depreciation Expense2023 Jan. 1EquipmentCash

Name: Sheridan's Repair Service uses the straight-line method of depreciati
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Sheridan's Repair Service uses the straight-line method of depreciation. The company's fiscal year-end is December 31. The followingtransactions and events occurred during the first three years.Purchased equipment from the Equipment Center for $7,90

In the books of Sheridan’s Repair Services : JOURNAL ENTRIES DATE ACCOUNTS TITLE DEBIT…

Business

Accounting

Sheridan's Repair Service uses the straight-line method of depreciation. The company's fiscal year-end is December 31. The following transactions and events occurred during the first three years. 2021 July 1 Purchased equipment from the Equipment Center for $7,900 cash plus sales tax of $580, and shipping costs of $490. Nov. 3 Incurred ordinary repairs on computer of $280. Dec. 31 Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $450. 2022 Dec. 31 Recorded 2022 depreciation. Paid $2,900 fora major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. 2023 Jan. 1

Sheridan's Repair Service uses the straight-line method of depreciation. The company's fiscal year-end is December 31. The following transactions and events occurred during the first three years. 2021 July 1 Purchased equipment from the Equipment Center for $7,900 cash plus sales tax of $580, and shipping costs of $490. Nov. 3 Incurred ordinary repairs on computer of $280. Dec. 31 Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $450. 2022 Dec. 31 Recorded 2022 depreciation. Paid $2,900 fora major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. 2023 Jan. 1

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 22E

See similar textbooks

Similar questions

Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2020, July 1 Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50. Nov. 3 Incurred ordinary repairs on computer of $140. Dec. 31 Recorded 2020 depreciation on the basis of a four year life and estimated salvage value of $500. 2021, Dec. 31 Recorded 2021 depreciation. 2022, Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Metlock Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2020 July 1 Purchased a computer from the Computer Center for $1,950 cash plus sales tax of $180, and shipping costs of $70. Nov. 3 Incurred ordinary repairs on computer of $160. Dec. 31 Recorded 2020 depreciation on the basis of a four-year life and estimated salvage value of $400. 2021 Dec. 31 Recorded 2021 depreciation. 2022 Jan. 1 Paid $200 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer. 1. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. If no entry is required, select "No…
Starz service uses the straight-line method of depreciation. The company’s fiscal year-end is December 31. The following transactions occurred during 2022. January 1 Purchased equipment from the barre company on account for 12,500 plus sales tax of 1,125 and shipping cost of 225 May 13 Incurred 140 routine maintenance on the equipment. Dec 31 Recorded 2022 depreciation on the basis of 3-year life and estimated salvage value of $4,850 Prepare the necessary adjusting journal entries, show computations and explanations of the adjusting entries on the answer sheet. Dates Accounts debit Credit
Eckan Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first year. 2022 Jan 1 Purchased a computer from the Computer Center for $2,500 cash Dec. 31 Recorded 2022 depreciation on the basis of a four year life and estimated salvage value of $500. Instructions T Prepare the necessary entries for Jan 1 and Dec 31. (Show calculations.)
Wildhorse Company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions occurred during 2025. Jan. 1 May 13 Dec. 31 Purchased equipment from the Indigo Company on account for $14,700 plus sales tax of $1,975 and shipping costs of $625. Paid for $540 routine maintenance on the equipment. Recorded 2025 depreciation on the basis of a 3-year life and estimated salvage value of $6,950. Prepare the necessary entries. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Swifty Corporation uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions occurred during 2022. Purchased equipment from the Nash's Trading Post, LLC for $11,250 plus sales tax of $1,015 and shipping costs of 1 $200. Jan. May 13 Incurred $126 routine maintenance on the equipment. Dec. 31 Recorded 2022 depreciation on the basis of a 3-year life and estimated salvage value of $4,365. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a 5-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company's year-end is December 31. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. 2. Prepare the general journal entry to record the disposal of the equipment under each of these three independent situations: a. The equipment was sold for $22,000 cash. (Remember to calculate accumulated depreciation. A full year of depreciation for the first 3 years and then the partial year for the fourth year calculated above). b. The equipment was sold for $15,000 cash. (Remember accumulated depreciation) c. The equipment was totally destroyed in a fire and the insurance company settled the claim for $18,000…
On March 1 of the current year, Dexter Cormpany acquired a machine costing P 650,000 with an estimated useful life of 15 yoars with salvage value of P S0,000. The ond of the fiscal yoar is July 31 of the curront yoar. How much depreciation is to be charged on July 31 of the current year? P 36,667 P 13,333 P16,667 P 40,000
Mario Company completed the following transactions and events involving its production equipment Year 1 Jan. 1 Paid $35,780 for a new production equipment estimated to have a seven-year life and a $3,500 salvage value. Dec. 31 Record annual straight-line depreciation on the equipment Year 2 Dec. 31 The equipment’s estimated useful life was changed from seven to five years, and the estimated salvage value was decreased to $3,000. Record revised annual straight-line depreciation on the equipment Year 3 Dec.31 Record annual straight-line depreciation on the equipment Dec. 31 Sold the equipment for $18,000 cash. Prepare journal entries to record these transactions and events.
Equipment acquired on January 8 at a cost of $139,100 has an estimated useful life of 16 years, has an estimated residual value of $8,700, 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? Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $98,242. 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 v Accumulated Depreciation-Equipment Feedback 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Cash Accumulated Depreciation-Equipment Loss on Sale of Equipment y Equipment 00 00 0000
Canyon Company has a used delivery truck that originally cost $24,500. Straight-line depreciation on the truck has been recorded for three years, with a $2,000 expected salvage value at the end of its estimated six-year useful life. The last depreciation entry was made at the end of the third year. Four months into the fourth year, Canyon disposes of the truck. Required Prepare journal entries to record:a. Depreciation expense to the date of disposal.b. Sale of the truck for cash at its book value.c. Sale of the truck for $14,000 cash.d. Sale of the truck for $11,000 cash.e. Theft of the truck. Canyon carries no insurance for theft.