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 25AE
To determine
Journalize the transaction for Corporation H regarding the sale of 1/10 of its plant and equipment.
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Company B's December 31 Year-End Balance Sheet reveals the following:
• December 31, 2020 net PPE of $865
• December 31, 2020 Accumulated Depreciation of $250
• December 31, 2021 net PPE of $770
• December 31, 2021 Accumulated Depreciation of $230
• Annual 2021 Depreciation Expense was $100
• During 2021, PPE was purchased for $560; all PPE purchases are made in cash.
• During 2021, the gain of the sale of PPE was $20
What is the journal entry Company B recorded to recognize 2021 depreciation expense?
Dr. Accumulated Depreciation $20
Cr. Depreciation Expense $20
Dr. Depreciation Expense $100
Cr. Accumulated Depreciation $100
Dr. Depreciation Expense $20
Cr. Accumulated Depreciation $20
Dr. Depreciation Expense $100
Cr. PPE $100
P10.5A Journalise a series of equipment transactions related to purchase, sale, retirement, and depreciation
At December 31, 2021. Grand Regency Limited reported the following as Non-current tangible assets:
4,000,000
16,400,000
June 11
July 1
Dec. 31
Land
Buildings
Less: Accumulated depreciation - buildings
Equipment
Less: Accumulated depreciation - equipment
Total plant assets
During 2022, the following selected cash transactions occurred.
April 1
Purchased land for R2,130,000.
May 1
(b)
(c)
(d)
28,500,000
12,100,000
48,000,000
5,000,000
Required:
(a)
43,000,000
£63,400,000
Sold equipment that cost R750,000 when purchased on January 1, 2018. The
equipment was sold for R450,000.
Sold land purchased on June 1, 2012 for R1,500,000. The land cost R400,000.
Purchased equipment for R2,500,000.
Retired equipment that cost R500,000 when purchased on December 31, 2012.
No salvage value was received.
Prepare general journal entries the above transactions. The company uses straight-line…
Could you please explain why Depreciation Expenses for the year 2021 was calucated as $40,000 x 150% x (3/12)=$1,500
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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