A truck was purchased via a bank loan for a cost of $75,000 with an estimated life of 10 years and a residual value of $1,000. Prepare the journal entries to record the purchase of the vehicle and prepare a journal entry for 1 month of depreciation

Q: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is…

A: Straight Line Method is a method where the Depreciable cost of an Assets is charged uniformly over…

Q: A hot-and-cold forming machine was purchased at a cost of $65,000. It has an estimated useful life…

A: GIVEN, COST = $65000 SALVAGE VALUE = $8000 USEFUL LIFE = 6 YEARS

Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000. It is…

A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…

Q: A light truck is purchased on January 1 at a cost of $25,000. It is expected to serve for eight…

A: Formula: Units of Production Depreciation= Cost- Salvage ValueTotal Units Produced in Life×Actual…

Q: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is…

A: Depreciation (double-declining-balance) = Original cost * Double Declining Depreciation rate…

Q: Nerdz, Inc. has just acquired a new truck for use in the business. Cost of the truck was $40,000.…

A: SOLUTION- DEPRECIATION REFERS TO THE AMOUNT OF PERMANENT LOSS IN THE VALUE OF AN ASSET. IT IS…

Q: Lima Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The asset will be…

A: Value of depreciable asset =$22000 Salvage value = $2000 Life of asset = 4 Years

Q: A piece of equipment is purchased for $40,000 and has an estimated salvage value of $1,000 at the…

A: Purchase cost=40,000 Salvage value=1,000 Useful life=5 years Straight line method: Depreciation…

Q: Bridgeport Company acquires a delivery truck at a cost of $55,000. The truck is expected to have a…

A: Under straight line method depreciable cost of an asset is depreciated equally over the life period…

Q: A building is acquired on January 1 at a cost of $830,000 with an estimated useful life of eight…

A: The double declining rate to be charged shall be the double of the Straight line rate.       For…

Q: Mason Delivery Services purchased a truck with a cost of $40,000, salvage value of $5,000 and useful…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On January 1, Year 1, Martin Mowing Company paid $64,000 to purchase a truck. The truck was expected…

A: Depreciation is the expense which is non-cash in nature and it is reported on the income statement…

Q: Vaughn Company purchases equipment on January 1, Year 1, at a cost of $558,000. The asset is…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: A computer was purchased on January 1 at a cost of $12,500. It has an estimated useful life of five…

A: Double declining rate = 1/useful*2 Depreciation expense = Beginning book value*Double declining rate…

Q: The engine of a truck burned out and needed to be replaced two years after it was originally…

A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…

Q: NewTech purchases computer equipment for $263,000 to use in operating activities for the next four…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: NewTech purchases computer equipment for $261,000 to use in operating activities for the next four…

A: Solution: Choose Numerator / Choose Denominator = Annual Depreciation Cost minus salvage /…

Q: machine has been purchased at 3,00,000 with estimated salvage value of 30,000 at the end of its…

A: Straight method of depreciation (Cost of asset - salvage value) / useful life  Cost of machine is…

Q: NewTech purchases computer equipment for $154,000 to use in operating activities for the next four…

A:

Q: [The following information applies to the questions displayed below.] NewTech purchases computer…

A: Double declining rate = 100/4 *2       = 50% Salvage = 26000

Q: NewTech purchases computer equipment for $267,000 to use in operating activities for the next four…

A: SOLUTION:   Straight line method of depreciation: Under this method, a fixed percentage on the…

Q: A company that manufactures food and beverages in the vending industry has purchased some handling…

A: Given: Cost of the equipment = $ 75,000

Q: On January 1, Year 1, RandallI Moving Company paid $22,500 cash to purchase a truck. The truck was…

A: Solution: Annual depreciation = (cost - salvage value) / useful life = (22500 - 4700)/ 5 = $3,560…

Q: Yoshi Company completed the following transactions and events involving its delivery trucks.   Year…

A: Depreciation expense for year 1     ( cost - salvage value)/ Estimated useful life…

Q: Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The…

A: Under Straight-line Depreciation Method :  Yearly Depreciation expense = ( Cost of asset - Salvage…

Q: [The following information applies to the questions displayed below.] Onslow Company purchased a…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: Compute the annual depreciation expense under the straight‑line depreciation method

A: The straight line depreciation method is a method where the depreciation expense amount is the same…

Q: Mount Vernon Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000…

A: Straight line depreciation is a method of depreciation where the cost is allocated on the basis of…

Q: On January 1, 2018, a company purchased a delivery truck for $45,000 cash. The truck had an…

A: Depreciation expense is the reduction in the value of an asset due to normal wear and tear, the…

Q: NewTech purchases computer equipment for $154,000 to use in operating activities for the next four…

A: Given information is: New Tech purchases computer equipment for $154,000 to use in operating…

Q: An asset is purchased on January 1 at a cost of $25,000. It is expected to be used for four years…

A:

Q: On January 1, Year 1, Missouri Company purchased a truck that cost $29,000. The truck had an…

A: Solution: Depreciation rate - SLM = 1/10 = 10% Depreciation rate - DDB = 10%*2 = 20%

Q: Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1…

A: Journal entry refers to the first entry in the accounting cycle. Journal entry is a book of original…

Q: On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $45,000. The cab has an…

A: Depreciation per unit (Units of production method) =(cost of Asset - salvage value )  / Estimated…

Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000, It is…

A: Given, Cost of asset = $170,000 Useful life = 5 years Salvage value = 30,000   Under straight line…

Q: Flint Company acquires a delivery truck at a cost of $48,000. The truck is expected to have a…

A: Step1: Calculating the annual value of depreciation expenses for the first year using the…

Q: peavey enterprises purchased a depreciable asset for 29,000 on April 1, year 1. The asset will be…

A: Straight-line depreciation seems to be a typical depreciation technique wherein the worth of a fixed…

Q: [The following information applies to the questions displayed below.] NewTech purchases computer…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Crystal Auto Wash purchased a vehicle to use for deliveries and is attempting to determine how much…

A: Depreciation expense is the reduction in the value of the asset which is caused due to its use. The…

Q: [The following information applies to the questions displayed below.] NewTech purchases computer…

A: Straight line method of depreciation (Cost of asset - salvage value) / useful life   Depreciation…

Q: [The following information applies to the questions displayed below.] NewTech purchases computer…

A: Formula: Annual Depreciation (straight-line method) = Depreciable value of the assets / Expected…

Q: On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Canyon Company has a used delivery truck that originally cost $24,500. Straight-line depreciation on…

A: Depreciation Expenses = (Cost of Truck - Salvage Value)/ Life of truck…

Q: Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a…

A: Straight line method of depreciation:  This is one of the methods to calculate the depreciation on…

Q: Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The…

A: Depreciation as per straight line method = (Cost - Salvage value)/Useful life

Q: XYZ Inc. has purchased a piece of equipment for $26,000. The equipment will be depreciated…

A: Formulas: Depreciation = (Cost of equipment - salvage value) / life

Q: [The following information applies to the questions displayed below.] NewTech purchases computer…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…