The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $38,000 cash by issuing common stock. 2. Purchased a new cooktop that cost 15800 cash 3. Earned 21200 in cash revenue 4. Paid 13500 cash for salaries expense 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $2,800. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. a. Record the events in general journal format and post to T-accounts.

The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $38,000 cash by issuing common stock. 2. Purchased a new cooktop that cost 15800 cash 3. Earned 21200 in cash revenue 4. Paid 13500 cash for salaries expense 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $2,800. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. a. Record the events in general journal format and post to T-accounts.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...

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Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
The following events apply to Gulf Seafood for the Year 1 fiscal year: The company started when it acquired $19,000 cash by issuing common stock. Purchased a new cooktop that cost $14,100 cash. Earned $21,700 in cash revenue. Paid $12,400 cash for salaries expense. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $2,400. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement? What amount of accumulated depreciation would Gulf Seafood report on the December 31, Year 2, balance sheet? Would the cash flow from operating activities be affected by depreciation in Year 1?
The following events apply to Gulf Seafood for the Year 1 fiscal year: The company started when it acquired $19,000 cash by issuing common stock. Purchased a new cooktop that cost $14,100 cash. Earned $21,700 in cash revenue. Paid $12,400 cash for salaries expense. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $2,400. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Record the above transactions in a horizontal statements model.
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