Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 16, Problem 11QS
1.
To determine
Determine the amount of cash received by Company A from the sale of building.
2.
To determine
Determine the
3.
To determine
Determine the cost of building purchased by Company A during 2019.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Using Cocoa-Cola's 2019 financial statements (see attached), what is:
a) The common size total intangible assets?
b) The total expended for property, plant & equipment over the last 3 years?
Sabrina's Fabric Land bought$5,000of
equipment at the beginning of 2019.
Amortization expense on the 2019 income
statement is $400. What is the balance in
accumulated amortization on December 31,
2019?
A.$5,000
B.$400
C.$0
D.$4,600
The balance sheets of Tully Corp. showed the following at December 31, 2020, and 2019:
December 31, 2020
$ 68,200
Equipment, less accumulated depreciation of $88,600 at December
31, 2020, and $55,375 at December 31, 2019.
Required:
a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first
acquired, what is the amount of depreciation expense for 2020?
b. Assume the same facts as in part a, and assume that the estimated useful life of the equipment is four years and the estimated
salvage value is $23,900. Determine:
Complete this question by entering your answers in the tabs below.
1. What the original cost of the equipment was.
2. What depreciation method is apparently being used.
3. When the equipment was acquired.
c. Assume that the equipment is sold on December 31, 2020, for $56,000. Prepare the horizontal model and record the journal entry
for the sale of the equipment. Indicate the financial statement…
Chapter 16 Solutions
Principles of Financial Accounting.
Ch. 16 - A company uses the indirect method to determine...Ch. 16 - Prob. 2MCQCh. 16 - Prob. 3MCQCh. 16 - Prob. 4MCQCh. 16 - The following information is available for a...Ch. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - When a statement of cash flows is prepared using...
Ch. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - Prob. 9DQCh. 16 - If a company reports positive net income for the...Ch. 16 - Prob. 11DQCh. 16 - Prob. 12DQCh. 16 - Prob. 13DQCh. 16 - Prob. 14DQCh. 16 - Prob. 15DQCh. 16 - Classify the following cash flows as either...Ch. 16 - Statement of cash flows Label the following...Ch. 16 - Prob. 3QSCh. 16 - Prob. 4QSCh. 16 - Prob. 5QSCh. 16 - Prob. 6QSCh. 16 - Prob. 7QSCh. 16 - Prob. 8QSCh. 16 - Prob. 9QSCh. 16 - The plant assets section of the comparative...Ch. 16 - Prob. 11QSCh. 16 - Prob. 12QSCh. 16 - Prob. 13QSCh. 16 - Prob. 14QSCh. 16 - Prob. 15QSCh. 16 - Prob. 16QSCh. 16 - Prob. 17QSCh. 16 - Prob. 18QSCh. 16 - Prob. 19QSCh. 16 - A company uses a spreadsheet to prepare its...Ch. 16 - Prob. 21QSCh. 16 - Bioware Co. reports cost of goods sold of 42,000....Ch. 16 - Prob. 23QSCh. 16 - Prob. 24QSCh. 16 - Refer to the data in QS 16-7. 1. How much cash is...Ch. 16 - Refer to the data in QS 16-7. 1. How much cash is...Ch. 16 - Prob. 27QSCh. 16 - Prob. 1ECh. 16 - Prob. 2ECh. 16 - Prob. 3ECh. 16 - Prob. 4ECh. 16 - Fitz Company reports the following information....Ch. 16 - Prob. 6ECh. 16 - Prob. 7ECh. 16 - Prob. 8ECh. 16 - Use the following information to determine cash...Ch. 16 - For each of the following separate transactions,...Ch. 16 - Prob. 11ECh. 16 - Use the following information to prepare a...Ch. 16 - Prob. 13ECh. 16 - Complete the following spreadsheet in preparation...Ch. 16 - Prob. 15ECh. 16 - Prob. 16ECh. 16 - Prob. 17ECh. 16 - Prob. 18ECh. 16 - Use the following information about Ferron Company...Ch. 16 - Prob. 20ECh. 16 - Prob. 1APCh. 16 - Refer to the information in Problem 16-1A....Ch. 16 - Forten Companys current-year income statement,...Ch. 16 - Prob. 4APCh. 16 - Prob. 5APCh. 16 - Golden Corp.s current-year income statement,...Ch. 16 - Prob. 7APCh. 16 - Prob. 8APCh. 16 - Prob. 1BPCh. 16 - Prob. 2BPCh. 16 - Gazelle Corporations current-year income...Ch. 16 - Prob. 4BPCh. 16 - Prob. 5BPCh. 16 - Prob. 6BPCh. 16 - Prob. 7BPCh. 16 - Prob. 8BPCh. 16 - Prob. 16SPCh. 16 - Use Apples financial statements in Appendix A to...Ch. 16 - Prob. 2AACh. 16 - Prob. 3AACh. 16 - Prob. 1BTNCh. 16 - COMMUNICATING IN PRACTICE Your friend, Diana Wood,...Ch. 16 - Prob. 3BTNCh. 16 - Prob. 5BTNCh. 16 - Prob. 6BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Using the sum-of-the-years-digits method, how much depreciation expense should Vorst record in 2020 for Asset B? a. 6,000 b. 9,000 c. 11,000 d. 12,000arrow_forwardI need to know how to calculate the gain on the equipment sold in part C The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,125 Required: If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020? Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine: What the original cost of the equipment was. What depreciation method is apparently being used. When the equipment was acquired. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal…arrow_forwardStudy the information given below and answer the following questions:5.1 Calculate the profit or loss on the disposal of the equipment. 5.2 Prepare the following note to the financial statements as at 28 February 2020:* Property, plant and equipment INFORMATIONThe following balances appeared in the general ledger of Umzinto Traders on 01 March 2019, the beginning of the financial year:RVehicles 300 000Accumulated depreciation on vehicles 140 000Equipment 130 000Accumulated depreciation on equipment 75 000Additional information1) A new vehicle, cost price R160 000, was purchased on credit on 01 December 2019.2) Equipment with a cost price of R10 000, was sold for cash on 31 August 2019 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2019.3) Depreciation is calculated on equipment at 10% per annum on cost.4) Depreciation is calculated on vehicles at 20% per annum on the diminishing balance.arrow_forward
- At December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May June Date 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. April 1 $26,520,000 11,934,000 60,640,000 7,580,000 May 1 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated…arrow_forwardInformation for Blake Corporation’s property, plant, and equipment for 2019 is: 1. For each asset classification, prepare schedules showing depreciation and amortization expense, and accumulated depreciation and amortization that would appear on Blake’s income statement for the year ended December 31, 2019, and on the balance sheet at December 31, 2019, respectively 2. Prepare a schedule showing the gain or loss from disposal of assets that would appear in Blake’s income statement for the year ended December 31, 2019. 3. Prepare the property, plant, and equipment section of Blake’s December 31, 2019, balance sheet.arrow_forwardFor all the blocks given below compute the written down value as on March 31,2021, for assessment year 2021-22 (all fig.in Rs.) Block of Asset Depreciation rate Value as on April1, 2020 (Rs.) 30,000 Furniture 10 10 Building Plant and Machinery | 20 Plant and Machinery | 15 Plant and Machinery | 40 1000000 300000 7000000 250000 During the previous year 2020-21 following transactions were done by him- Date of Purchase October1,2020 July 20, 2020 December 12,2020 January 10,2021 January 10,2021 Determine the amount of depreciation for the assessment year 2021-22 Date of Put to use Asset Cost Depreciation rate November 10,2020 | Copy right| August 22,2020 January 10,2021 February 10,2021 January 15,2021 20000 25 Plant-Second hand Office appliances 200000 150000 200000 50000 40 15 Car 15 Books for professional use 40arrow_forward
- On NOVEMBER 1, 2020, you purchased equipment for $60,000. The equipment had an estimated salvage value of $4,000 and an estimated life of 7 years. Your company was using the sum of the years' digits method of depreciation method and records depreciation annually on December 31. A. Prepare the journal entries and show your calculations for November 1, 2020 December 31, 2020 December 31, 2021 1. 2. 3. Assume at the end of 2021, the equipment was becoming obsolete. You estimated future cash flows from the equipment would be $29,000. An appraisal of the value of the equipment on December 31, 2021, indicated a fair value of $23,000. Prepare the entry for impairment (if needed). В. Assume the equipment was NOT becoming obsolete, so ignore any impairment in part B. Assume you changed from sum of the years' digits method to straight line method of depreciation on March 1, 2022. Prepare all entries related to the equipment and depreciation on С. March 1, 2022 December 31, 2022 1. 2.arrow_forward2. A building is purchased on June 1, 2019, and has a value of $360,000. Assume that theDeclining Balance Method of Depreciation is used:a) Calculate the Depreciation Expense for the first year of ownership of this building ifthe fixed percentage allowed for buildings is 5%.b) Write the adjusting journal entry, dated June 31, 2019, to record the depreciationexpense for the month of June.c) Show the Fixed Assets section of the Balance Sheet at June 31, 2019.d) Write the adjusting journal entry, dated June 31, 2020, to record the depreciationexpense for the month of June.e) Show the Fixed Assets section of the Balance Sheet at June 31, 2020.arrow_forwardAnnood Company owns land that it purchased at a cost of $700,000 in 2018. The land's recoverable value fluctuate as follows (all amounts as of December 31): 2018, $680,000; 2019, $720,000. The journal entry to record impairment of the land in 2019 would be: a. Debit land account, $20,000, credit impairment loss recovery, $20,000 O b. Debit impairment loss account, $20,000; credit land account, $20,000 O c. Debit land account, 40,000; credit impairment loss recovery, $40,000 O d. No entry is required under IFRS 36.arrow_forward
- Assuming Cash transactions and straightline depreciation,prepare journal entry to record purchase of building and Land on January 2,2018, Depreciation expenses on December 31,2018. And assume that after four years the property(land and building) was sold for $470,000,Prepare the Journal entry to record the sale.arrow_forwardDinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.arrow_forwardReferring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College