Depreciation : The allocation of the cost of long-lived assets across the useful life of assets is called depreciation. Depreciation is allocated using a straight-line method that allocates an equal amount each year. At the end of the year, the depreciation expense is recorded by passing adjustment entries . The calculation of depreciation for the month of October using the straight-line method of depreciation.

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Answer 1

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Chapter 3, Problem 3.8SE

1.

To determine

Concept Introduction:

Depreciation: The allocation of the cost of long-lived assets across the useful life of assets is called depreciation. Depreciation is allocated using a straight-line method that allocates an equal amount each year. At the end of the year, the depreciation expense is recorded by passing adjustment entries.

The calculation of depreciation for the month of October using the straight-line method of depreciation.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entries to record depreciation on October 31.

3.

To determine

Concept Introduction: Double-entry accounting requires the accounting equation remain in balance, at least two accounts are involved, and each debit entry will have its corresponding credit entry with equal amounts. This will make the debit side equal to the credit side. At the end of the year, each ledger is balanced and the excess of one side over the other side will be transferred to the next period as balance.

The posting of adjustment entries to the accounts involved and show the balances.

4.

To determine

Concept Introduction: Book value is the value of an asset after the deduction of accumulated depreciation. The book value represents the cost invested in the asset that the business has not yet expensed.

The book value of the computer equipment at the end of October 31.

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Journalizing and posting an adjusting entry for depreciation and determining book value On October 1, Orlando Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero. Requirements Calculate the amount of depreciation for the month of October using the straight-line depreciation method. Record the adjusting entry for depreciation on October 31. Post the purchase of October 1 and the depreciation on October 31 to T-accounts for the following accounts: Computer Equipment, Accumulated Depreciation—Computer Equipment, and Depreciation Expense—Computer Equipment. Show their balances at October 31. What is the computer equipment’s book value on October 31?

Calculate the Annual Depreciation for each listed asset. Assume the assets were purchased on January 1st and used for 12 months. The first asset has been completed. Utilize the straight-line depreciation method: (Original cost - Estimated Salvage Value) / Estimated Useful Life = Annual Depreciation Plant Asset Cash register Computer Vehicle Machinery Desk Asset Original Cost 500.00 4,500.00 15,500.00 8,000.00 2,500.00 Calculate the amount to be depreciated: Annual Depreciation Cash register Computer Vehicle Machinery Desk Estimated Salvage Value 25.00 800.00 3,000.00 1,200.00 200.00 67.86 Estimated Useful Life 7 years 5 years 10 years 5 years 15 years Questions? Contact your instructor!

A copier was purchased for $7,211.45 on February 3, 2015. 200% MACRS is the method used to depreciate this copier and the depreciation is recorded at the end of each month. On August 27, 2015, the copier breaks and a cash refund of $6,200.00 is provided. Create the general journal entry to record the assest disposal of this copier (check figure: Loss on Asset Disposal = $224.75)

Answer 2

Question

Chapter 3, Problem 3.8SE

1.

To determine

Concept Introduction:

Depreciation: The allocation of the cost of long-lived assets across the useful life of assets is called depreciation. Depreciation is allocated using a straight-line method that allocates an equal amount each year. At the end of the year, the depreciation expense is recorded by passing adjustment entries.

The calculation of depreciation for the month of October using the straight-line method of depreciation.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entries to record depreciation on October 31.

3.

To determine

Concept Introduction: Double-entry accounting requires the accounting equation remain in balance, at least two accounts are involved, and each debit entry will have its corresponding credit entry with equal amounts. This will make the debit side equal to the credit side. At the end of the year, each ledger is balanced and the excess of one side over the other side will be transferred to the next period as balance.

The posting of adjustment entries to the accounts involved and show the balances.

4.

To determine

Concept Introduction: Book value is the value of an asset after the deduction of accumulated depreciation. The book value represents the cost invested in the asset that the business has not yet expensed.

The book value of the computer equipment at the end of October 31.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 3, Problem 3.8SE

1.

To determine

Concept Introduction:

Depreciation: The allocation of the cost of long-lived assets across the useful life of assets is called depreciation. Depreciation is allocated using a straight-line method that allocates an equal amount each year. At the end of the year, the depreciation expense is recorded by passing adjustment entries.

The calculation of depreciation for the month of October using the straight-line method of depreciation.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entries to record depreciation on October 31.

3.

To determine

Concept Introduction: Double-entry accounting requires the accounting equation remain in balance, at least two accounts are involved, and each debit entry will have its corresponding credit entry with equal amounts. This will make the debit side equal to the credit side. At the end of the year, each ledger is balanced and the excess of one side over the other side will be transferred to the next period as balance.

The posting of adjustment entries to the accounts involved and show the balances.

4.

To determine

Concept Introduction: Book value is the value of an asset after the deduction of accumulated depreciation. The book value represents the cost invested in the asset that the business has not yet expensed.

The book value of the computer equipment at the end of October 31.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 3, Problem 3.8SE

1.

To determine

Concept Introduction:

Depreciation: The allocation of the cost of long-lived assets across the useful life of assets is called depreciation. Depreciation is allocated using a straight-line method that allocates an equal amount each year. At the end of the year, the depreciation expense is recorded by passing adjustment entries.

The calculation of depreciation for the month of October using the straight-line method of depreciation.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entries to record depreciation on October 31.

3.

To determine

Concept Introduction: Double-entry accounting requires the accounting equation remain in balance, at least two accounts are involved, and each debit entry will have its corresponding credit entry with equal amounts. This will make the debit side equal to the credit side. At the end of the year, each ledger is balanced and the excess of one side over the other side will be transferred to the next period as balance.

The posting of adjustment entries to the accounts involved and show the balances.

4.

To determine

Concept Introduction: Book value is the value of an asset after the deduction of accumulated depreciation. The book value represents the cost invested in the asset that the business has not yet expensed.

The book value of the computer equipment at the end of October 31.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 3, Problem 3.8SE

1.

To determine

Concept Introduction:

Depreciation: The allocation of the cost of long-lived assets across the useful life of assets is called depreciation. Depreciation is allocated using a straight-line method that allocates an equal amount each year. At the end of the year, the depreciation expense is recorded by passing adjustment entries.

The calculation of depreciation for the month of October using the straight-line method of depreciation.

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entries to record depreciation on October 31.

3.

To determine

Concept Introduction: Double-entry accounting requires the accounting equation remain in balance, at least two accounts are involved, and each debit entry will have its corresponding credit entry with equal amounts. This will make the debit side equal to the credit side. At the end of the year, each ledger is balanced and the excess of one side over the other side will be transferred to the next period as balance.

The posting of adjustment entries to the accounts involved and show the balances.

4.

To determine

Concept Introduction: Book value is the value of an asset after the deduction of accumulated depreciation. The book value represents the cost invested in the asset that the business has not yet expensed.

The book value of the computer equipment at the end of October 31.

Answer 6

Chapter 3, Problem 3.8SE

1.

To determine

Concept Introduction:

Depreciation: The allocation of the cost of long-lived assets across the useful life of assets is called depreciation. Depreciation is allocated using a straight-line method that allocates an equal amount each year. At the end of the year, the depreciation expense is recorded by passing adjustment entries.

The calculation of depreciation for the month of October using the straight-line method of depreciation.

Answer 7

Chapter 3, Problem 3.8SE

1.

To determine

Concept Introduction:

Depreciation: The allocation of the cost of long-lived assets across the useful life of assets is called depreciation. Depreciation is allocated using a straight-line method that allocates an equal amount each year. At the end of the year, the depreciation expense is recorded by passing adjustment entries.

The calculation of depreciation for the month of October using the straight-line method of depreciation.

Answer 8

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entries to record depreciation on October 31.

Answer 9

2.

To determine

Concept Introduction: Adjusting entries are made at the end of the accounting period to record revenues in the period they are earned and expenses in the period they occur. Assets and liabilities are also updated by adjustment entries. To present true and fair financial statements, adjustment entries are also required.

The adjustment entries to record depreciation on October 31.

Answer 10

3.

To determine

Concept Introduction: Double-entry accounting requires the accounting equation remain in balance, at least two accounts are involved, and each debit entry will have its corresponding credit entry with equal amounts. This will make the debit side equal to the credit side. At the end of the year, each ledger is balanced and the excess of one side over the other side will be transferred to the next period as balance.

The posting of adjustment entries to the accounts involved and show the balances.

Answer 11

3.

To determine

Concept Introduction: Double-entry accounting requires the accounting equation remain in balance, at least two accounts are involved, and each debit entry will have its corresponding credit entry with equal amounts. This will make the debit side equal to the credit side. At the end of the year, each ledger is balanced and the excess of one side over the other side will be transferred to the next period as balance.

The posting of adjustment entries to the accounts involved and show the balances.

Answer 12

4.

To determine

Concept Introduction: Book value is the value of an asset after the deduction of accumulated depreciation. The book value represents the cost invested in the asset that the business has not yet expensed.

The book value of the computer equipment at the end of October 31.

Answer 13

4.

To determine

Concept Introduction: Book value is the value of an asset after the deduction of accumulated depreciation. The book value represents the cost invested in the asset that the business has not yet expensed.

The book value of the computer equipment at the end of October 31.

Answer 14

Expert Solution & Answer

Answer 15

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Answer 16

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Answer 17

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Concept Introduction: Book value is the value of an asset after the deduction of accumulated depreciation. The book value represents the cost invested in the asset that the business has not yet expensed. The book value of the computer equipment at the end of October 31.

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Chapter 3 Solutions

Concept Introduction: Book value is the value of an asset after the deduction of accumulated depreciation. The book value represents the cost invested in the asset that the business has not yet expensed.

The book value of the computer equipment at the end of October 31.