Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 8, Problem 1CP
1.
To determine
Calculate the annual depreciation expense as of December 31, 2018, for all assets purchased in 2018.
2.
To determine
Show the way in which the fixed assets will be reflected on the
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Current Attempt in Progress
On July 1, 2014, Sheridan Enterprises sold equipment with an original cost of $79,000 for $30,600. The equipment was purchased
January 1, 2011, and was depreciated using the straight-line method over a five-year useful life with a $8,400 salvage value. Prepare
the journal entry to record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not
indent manually)
Account Titles and Explanation
Cash
Accumulated Depreciation-Equipment
Equipment
gain on
Debit
Credit
IHI
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
Recording partial-year depreciation and sale of an asset
On January 2,2017, Comfy Clothing Consignments purchased showroom fixtures for $17,000 cash, expecting the fixtures to remain in service for five years. Comfy has depreciated the fixtures on a double-declining-balance basis, with zero residual value. On October 31, 2018, Comfy sold the fixtures for $7,600 cash. Record both depreciation expense for 2018 and sale of the fixtures on October 31, 2018.
Chapter 8 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - What is depreciation, and why is it used in...Ch. 8 - Prob. 5DQCh. 8 - Which depreciation method would be moot...Ch. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 1SCCh. 8 - Prob. 2SCCh. 8 - How should a capital expenditure for a long-term...Ch. 8 - Which depreciation method usually produces the...Ch. 8 - Prob. 5SCCh. 8 - Prob. 6SCCh. 8 - Prob. 7SCCh. 8 - Prob. 8SCCh. 8 - Prob. 9SCCh. 8 - Prob. 10SCCh. 8 - Prob. 11SCCh. 8 - Prob. 12SCCh. 8 - Prob. 1SECh. 8 - Long-term asset terms (Learning Objective 1) 5-10...Ch. 8 - Prob. 3SECh. 8 - Lump-sum purchase (Learning Objective 2) 5-10 min....Ch. 8 - Errors in accounting for long-term assets...Ch. 8 - Concept of depreciation (Learning Objective 3)...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Prob. 9SECh. 8 - Prob. 10SECh. 8 - Prob. 11SECh. 8 - Prob. 12SECh. 8 - Prob. 13SECh. 8 - Prob. 14SECh. 8 - Prob. 15SECh. 8 - Other long term assets (Learning Objective 8) 5-10...Ch. 8 - Prob. 17SECh. 8 - Prob. 18AECh. 8 - Prob. 19AECh. 8 - Prob. 20AECh. 8 - Prob. 21AECh. 8 - Depreciation methods (Learning Objective 3) 15-20...Ch. 8 - Prob. 23AECh. 8 - Prob. 24AECh. 8 - Prob. 25AECh. 8 - Prob. 26AECh. 8 - Prob. 27AECh. 8 - Prob. 28AECh. 8 - Prob. 29AECh. 8 - Prob. 30AECh. 8 - Prob. 31AECh. 8 - Prob. 32BECh. 8 - Prob. 33BECh. 8 - Prob. 34BECh. 8 - Prob. 35BECh. 8 - Prob. 36BECh. 8 - Prob. 37BECh. 8 - Prob. 38BECh. 8 - Prob. 39BECh. 8 - Prob. 40BECh. 8 - Prob. 41BECh. 8 - Prob. 42BECh. 8 - Prob. 43BECh. 8 - Prob. 44BECh. 8 - Prob. 45BECh. 8 - Long-term asset costs and partial-year...Ch. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51APCh. 8 - Prob. 52APCh. 8 - Prob. 53BPCh. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 55BPCh. 8 - Prob. 56BPCh. 8 - Prob. 57BPCh. 8 - Prob. 58BPCh. 8 - Prob. 59BPCh. 8 - Prob. 1CECh. 8 - Prob. 1CPCh. 8 - Continuing Financial Statement Analysis Problem...Ch. 8 - Prob. 1EIACh. 8 - Prob. 2EIACh. 8 - Financial Analysis Purpose: To help familiarize...Ch. 8 - Prob. 1IACh. 8 - Prob. 1SBACh. 8 - Written Communication A client of yours notified...
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- On January 2, 2017, Thrifty CLothing Consignments purchased showroom fixtures for $12,000 cash, expecting the fixtures to remain in service for five years. Thrifty had depreciated the fixtures on a double-declining-balance basis, with zero residual value. On August 31, 2018, Thrifty sold the fixtures for $6,200 cash. Record both depreciation expense for 2018 and sale of the fixtures on August 31, 2018 (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Note that 2017 depreciation was recorded and posted in 2017.)arrow_forwardCurrent Attempt in Progress Oriole Company owns equipment that cost $70,500 when purchased on January 1, 2019. It has been depreciated using the straight- line method based on estimated salvage value of $4,200 and an estimated useful life of 5 years. Prepare Oriole 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) (b) (c) (d) Sold for $34,780 on January 1, 2022. Sold for $34,780 on May 1, 2022. Sold for $10,300 on January 1, 2022. Sold for $10,300 on October 1, 2022.arrow_forwardOn January 1, 2017, Sarah Company purchased for $60,000 a truck that had an estimated life of five years and no residual value at the end of its useful life. Sarah uses straight-line depreciation. The cost of the truck was charged to Repairs Expense when purchased in 2017. Required: a. Ignoring income taxes, prepare the journal entry to correct the error if it was discovered and corrected on January 1, 2020 (Sarah's year ends on December 31). b. When preparing the 2020 financial statements, how much depreciation expense should be reported on the comparative 2018 and 2019 income statements?arrow_forward
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Accounting for Derivatives_1.mp4; Author: DVRamanaXIMB;https://www.youtube.com/watch?v=kZky1jIiCN0;License: Standard Youtube License
Depreciation|(Concept and Methods); Author: easyCBSE commerce lectures;https://www.youtube.com/watch?v=w4lScJke6CA;License: Standard YouTube License, CC-BY