Chapter 3, Problem 4UJ

Required information [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $290,000. The machine is expected to last five years and have a salvage value of $45,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the straight-line method. Choose Numerator: Year First year Second year Annual Depreciation Choose Denominator: Fraction of Year Annual Depreciation = Annual depreciation = Depreciation Expense 0

Calculate depreciation. A machine cost $165,000 on April 28, 2021. Its estimated salvage value is $5,000 and its expected life is eight years. Instructions Prepare a depreciation schedule for each year using each of the following methods, showing the figures used. These schedules should have formulas in the cells referencing the "input section" that was discussed previously. (a) Straight-line (b) Double-declining-balance (c) Sum-of-the-years'-digits

Required information (The following information applies to the questions displayed below.] On January 1, 2021, the Excel Delivery Company purchased a delivery van for $30,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 128,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 3. Units of production using miles driven as a measure of output, and the following actual mileage: (Do not round intermediate calculations.) Yoar Miles Depreciation 2021 36,000 $ 7,594 2022 10,000 2,109 2023 15,000 3,164 34,000 7,172 7,383 2024 2025 35,000! Total 27,422

As the recently appointed auditor for Cheyenne Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2020, are prepared. The controller for Cheyenne Corporation mentions that only one account is kept for intangible assets. The account is shown below. Jan. 4 Jan. 5 Jan. 31 Feb. 11 March 31 April 30 June 30 Intangible Assets Research and development costs Legal costs to obtain patent Payment of 7 months' rent on property leased by Cheyenne Premium on common stock Unamortized bond discount on bonds due March 31, 2040 Promotional expenses related to start-up of business Operating losses for first 6 months Debit 934,000 72,960 86,800 93,600 228,800 259,000 Credit 234,000 Balance 934,000 1,006,960 1,093,760 859,760 953,360 1,182,160 1,441,160 Prepare the entries necessary to correct this account. Assume that the patent has a useful life of 10 years. (Credit account titles are automatically indented when amount is entered. Do not…

Repeat parts (a) through (d) assuming that Sweet Acacia prepares its financial statements using ASPE. The original estimate of the physical life of the building was 44 years, with a salvage value of $130,000. (Ignore the addition in early 2005.) In 2023, the estimated useful life and physical life were both revised to be 30 years, with no residual value/salvage value for the asset at the end of the 30-year period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry. Round answers to O decimal places, e.g. 5,275.) Annual depreciation, 1995 through 2004 $ Annual depreciation, 2005 through 2022 Account Titles and Explanation Annual depreciation $ A /year /year Debit Credit

Required information [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $28,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Straight-Line Depreciation Choose Numerator: Choose Denominator: Annual Depreciation Expense = = Year Annual Depreciation Year 1 Year 2 Year 3 Year 4 Total Depreciation expense WHEREL Year-End Book Value

Use the following information to answer the next 4 questions: The following are selected transactions affecting Aggie Company's long-term assets during the 2020 fiscal year.Apr 1 Purchased a truck for $36,000. The truck is expected to last six years and have a $3,000 salvage value. The company uses straight-line depreciation for its trucks. June 1 Sold a computer for $20,000. The computer had been purchased for $95,000 on January 1, 2018. The computer was expected to last for five years with a salvage value of $5,000. The company uses the double-declining method to depreciate their computer equipment.Sept. 1 Sold a piece of machinery that was purchased on January 1, 2018. The machine cost $60,000 and the company expected the machine to produce 36,000 units. The machine has an estimated salvage value of $6,000. The machine produced 5, 800 units in 2018; 5,500 units in 2019; and 3,400 units in 2020. The sale of the machine resulted in a loss of $2,950. Required:7. Determine the book…

Current Attempt in Progress Your answer is partially correct. Pharoah Company owns equipment that cost $72,800 when purchased on January 1, 2022. It has been depreciated using the straight- line method based on an estimated salvage value of $5,600 and an estimated useful life of 5 years. Prepare Pharoah Company's journal entries to record the sale of the equipment in these four independent situations. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Sold for $34,720 on January 1, 2025. (b) Sold for $34,720 on May 1, 2025. (c) Sold for $12,320 on January 1, 2025. (d) Sold for $12,320 on October 1, 2025. No. Account Titles and Explanation (a) Cash Debit 34720 Credit

Required information [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $271,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $25,000. Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. (Enter all amounts as positive values.) Year Year 1 Year 2 Year 3 Year 4 Total Beginning- Year Book Value $ Depreciation for the Period Depreciation Rate Answer is not complete. 271,000 135,500 67,750 33,875 Annual Depreciation 50% $ 135,500 50% 67,750 33,875 50% 50% $ 237,125 End of Period Accumulated Depreciation $ 135,500 Year-End Book Value $ 135,500 67,750 33,875