8,540,000 Fair value 5,856,0
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Presented below is information related to equipment owned by Blue Company at December 31, 2020.
| Cost | $10,980,000 | |
| 1,220,000 | ||
| Expected future net cash flows | 8,540,000 | |
| Fair value | 5,856,000 |
Assume that Blue will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.
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- On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and amortization expense to the nearest whole year. During 2020, Vail engaged in the following transactions: Required: 1. Check the accuracy of the accumulated depreciation balances at December 31, 2019. Round to the nearest whole dollar in all requirements. 2. Prepare journal entries to record the preceding events in 2020, as well as the year-end recording of depreciation expense. 3. Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance.The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was 100,000. No residual value is expected, the remaining estimated life is 10 years, and straight-line depreciation is used. b. All purchases of materials for construction contracts still in progress have been immediately expensed. It is discovered that the use of these materials was 10,000 during 2018 and 12,000 during 2019. c. Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, 40,000 of depreciation was accounted for in that manner. Production was 15,000 units during 2019, of which 3,000 remained in inventory at the end of the year. Assume there was no inventory at the beginning of 2019. Required: Prepare journal entries for the preceding errors discovered during 2020. Ignore income taxes.There are two Journal Entries 1) Prepare journal entries for Wember to record the impairment of its intangible assets at December 31, 2019 2) Prepare journal entries for Wember to record the amortization expense for its intangibles at December 31, 2020
- PREPARE A REVISED STATEMENT OF FINANCIAL POSITION GIVEN THE AVAILABLE INFORMATION. ASSUME THAT THE ACCUMULATED DEPRECIATION BALANCE FOR THE BUILDINGS IS 172000 AND FOR THE EQUIPMENT, 117000. THE ALLOWANCE FOR DOUBTFUL ACCOUNTS HAS A BALANCE OF 29000. THE PENSION LIABILITY IS CONSIDERED A NON-CURRENT LIABILITY. (LIST CURRENT ASSETS IN REVERSE ORDER OF LIQUIDITY. LIST PROPERTY, PLANT, AND EQUIPMENT IN ORDER OF BUILDINGS AND EQUIPMENT. ENTER ACCOUNT NAME ONLY AND DO NOT PROVIDE THE DESCRIPTIVE INFORMATION PROVIDED IN THE QUESTION.)In 2024, it was discovered that Brandon Irons Metal works had debited expense for the full cost of an asset purchased on January 1, 2021. The cost was $12 million with no expected residual value. Its useful life was 5 years and straight-line depreciation is used by the company. The correcting entry assuming the error was discovered in 2024 before the adjusting and closing entries includes:The company has the following balances on the Unadjusted Trial Balance for the year Dec. 31, 2019: Computer - P240,000 Accumulated Depreciation – Computer - P 40,000 Depreciation Policy: Straight line method with useful life of 5 years, and zero scrap value. Required: a. Prepare adjusting entries for the depreciation expense for 2019. b. Present the net book value of the computer for December 31, 2019.
- Required: Indicate the effects of the following on the accounting equation. (Enter decreases to account categories as negative amounts and do not round your intermediate calculations.) 1. The adjustment for depreciation at the end of 2019. 2. The two expenditures during 2020 for (a) the major overhaul of the equipment and (b) repairs and maintenance.Windsor Company is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you. 1. Windsor purchased equipment on January 2, 2017, for $ 86,600. At that time, the equipment had an estimated useful life of 10 years with a $ 4,600 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2020, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $ 3,200 salvage value. 2. During 2020, Windsor changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $ 280,000. It had a useful life of 10 years and a salvage value of $ 28,000. The following computations present depreciation on both bases for 2018 and 2019. 2019 2018 Straight-line $ 25,200…Windsor Company is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you. 1. Windsor purchased equipment on January 2, 2017, for $86,600. At that time, the equipment had an estimated useful life of 10 years with a $4,600 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2020, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $3,200 salvage value. 2. During 2020, Windsor changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $280,000. It had a useful life of 10 years and a salvage value of $28,000. The following computations present depreciation on both bases for 2018 and 2019. 2019 2018 Straight-line $25,200…
- Windsor Company is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you. 1. Windsor purchased equipment on January 2, 2017, for $86,600. At that time, the equipment had an estimated useful life of 10 years with a $4,600 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2020, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $3,200 salvage value. 2. During 2020, Windsor changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $280,000. It had a useful life of 10 years and a salvage value of $28,000. The following computations present depreciation on both bases for 2018 and 2019. 2019 2018 Straight-line $25,200…Martinez Company is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you. 1 Martinez purchased equipment on January 2, 2017, for $92,900. At that time, the equipment had an estimated useful life of 10 years with a $4,900 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2020, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $2,900 salvage value. 2 During 2020, Martinez changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $280,000. It had a useful life of 10 years and a salvage value of $28,000. The following computations present…2.You are provided with the following information: The damage from the destruction of insured machinery that took place on 30/9/2020 was not recorded in the relevant accounts. The insurance company has undertaken to cover 70% of the residual value of the machines. The machines were purchased on 1/5/2018 instead of 198.000€ and the amount of the annual depreciation of the machines is 19.800€. A correction record is requested (a) if the error was found in the financial year (2020) and (b) if the error was found in the next financial year (2021), i.e. the error while the correction was made in 2020, the correction entry is made in 2021.
