Connect 1 Semester Access Card for Fundamentals of Financial Accounting
5th Edition
ISBN: 9781259128547
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Question
Chapter 9, Problem 9.5E
1.
To determine
To prepare: The adjusting
2.
To determine
the remaining estimated useful life of the asset.
3.
To determine
To prepare: The journal entries to record the two expenditures for repairs and maintenance during2015.
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Prepare journal entries to record depreciation of the printing machine for each of the years ended 30 june 2017 and 30 june 2018 using straight line method,declining balance method @40%, sum of digits method and production basis.State the carrying amount of the machine at the end of each period and prepare the journal entry to record the sale of machine on 01/07/2018
Record the general journal entry to record the depreciation expense for the equipment for the year ending 30 June 2022 if Broadway uses the straight-line depreciation method. Not all boxes need to be completed
Question 1
Glowing Incorporation closes its accounts on March 31 annually. Below is an extract of its
balance sheet as at March 31, 2014.
Non-Current Assets
Useful Life
Net Book
Value
Residual Value
Buildings
40 Years
$2,000
Machinery
10 Years
$53,626
$6,500
(130,000 machine hours)
Fixtures and Fittings
8 Years
$30,600
$4,250
It is the policy of the company to charge depreciation expense as follows:
Buildings
Straight Line Method
Machinery
Units of Activity Method
Fixtures and Fittings
Declining Balance Method
Additional information:
1. The assets above were purchased as follows:
Non-Current Assets
Date of Purchase
Purchase Price
Buildings
April 1, 2010
$80,000
Machinery
January 31, 2011
$65,000
Fixtures and Fittings
May 1, 2013
$34,000
2. Actual machine hours used in the production process is 4,200 hours
Chapter 9 Solutions
Connect 1 Semester Access Card for Fundamentals of Financial Accounting
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