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- Problem 1-583 Arrangement of the Income Statement Parker Renovation Inc. renovates historical buildings for commercial use. During 2019. Parker had $763,400 of revenue from renovation services and $5,475 of interest income from miscellaneous investments. Parker incurred $222,900 of wages expense $135,000 of depreciation expense, $65,850 of insurance expense, $109,300 of utilities expense, $31,000 of miscellaneous expense, and $61,400 of income taxes expense. Required: Prepare a single-step income statement for Parker for 2019.QUESTION TWO The following information relating to property plant and equipment was extracted fromthe accounting records of Fred’s Transport for year ended 28 February 2022;1. Balances at 28 February 2021:- Equipment at cost R 56 000- Accumulated depreciation: equipment R 10 860- Vehicles at cost R560 000- Accumulated depreciation: vehicles R285 360 2. The following transactions in respect of property, plant and equipment took placeduring the current financial year:2.1 An old vehicle was sold on 31 August 2021 for R144 000 cash. The cost priceof the vehicle sold was R240 000, and its accumulated depreciation amountedto R120 100 on 1 March 2021. The proceeds from the sale of the vehicle wasused to partially finance the purchase of another vehicle for R440 000 boughton 1 September 2021.2.2 On 28 February 2022 sold used equipment for R14 400 cash. The accumulateddepreciation on this equipment was R3 280 at 1 March 2021. The cost price ofthe equipment was R18 000.3. Depreciation must still…b. The following are balances brought forward from 31 December 2018 for KC Deco Center : RM RMMotor Vehicles 100,000Less : Provision for depreciation (20,000)80,000The motor vehicles were depreciated at 15% per annum using reducing balance method. KC bought a new vehicle on 1 October 2019, cost of the new vehicle was RM120,000. You are required to prepare the following accounts for financial year ending 31 December 2019 :i. The Motor Vehicle Accountii. The Provision for Depreciation Account
- Parts B and C is where the assistance is needed The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,125 If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020? Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine: What the original cost of the equipment was. What depreciation method is apparently being used. When the equipment was acquired. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal entry for the sale of the…1. The company purchased equipment on account for P190,000 on September 01, 2016. The equipment has an estimated useful life of 8 years and salvage value of P10,000. Required: a. Record the adjusting entry to take up the depreciation for the year December 31, 2019. b. Provide the computation of depreciation expense for December 31, 2019. 2. 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.Question: A car valued at $30,000 has $600 of depreciation to be adjusted as of January 31st. Which entry should be made? Debit Accumulated Depreciation, Credit Car, both for $600 Credit Accumulated Depreciation, Debit Depreciation Expense, both for $600 Debit Accumulated Depreciation, Credit Depreciation Expense, both for $600 Debit Car, Credit Depreciation, both for $600
- A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. A $20,000 B $2,500 C $5,000 D $0QUESTION 3 Titanium Ltd is a company that distributes sport equipment and was incorporated on 1 January 2019 The following information relates Titanium Ltd: Titanium Ltd EXTRACT FROM TRIAL BALANCE ON 01 JANUARY 2020 DEBIT $ CREDIT $ Land and Buildings (at cost) 1 000 000 Office equipment (at cost) 420 000 Accumulated depreciation on office equipment 70 000 Vehicles (at cost) 220 000 Accumulated depreciation on vehicles 49 500 Titanium Ltd EXTRACT FROM ACCOUNTING POLICY Property, Plant and Equipment Asset Measuremen t model Depreciation (method) Depreciatio n (write-off period) Expected residual value Land & buildings Revaluation Not applicable Not applicable Not applicable Office equipment Cost Straight-line 6 years None Vehicles Cost Straight-line 4 years 10% of cost Additional information: Land and Buildings were originally purchased on 01…QUESTION 1 Kamisan Enterprise provides for depreciation of its machinery at 20% per annum on cost; it chargesfor a full year in the year of purchase but no provision is made in the year of sale/disposal.Financial statements are prepared annually to 31 December.2017January 1 Bought machine “A” RM12,000July 1 Bought machine “B” RM9,0002018March 31 Bought machine “C” RM11,0002019October 8 Sold machine “A” – proceeds RM6,400November 7 Bought machine “D” RM14,0002020February 3 Sold machine “B” – proceeds RM3,500February 5 Bought machine “E” RM9,700October 12 Exchanges machine “D” for machine “F” valued at RM8,000 Required:(a) Prepare the machinery account for the period from 1 January 2017 to 31 December 2020.(b) Prepare the provision for depreciation on machinery account, for the period from 1 January2017 to 31 December 2020.(c) The disposal of machinery accounts showing the profit/loss on sale for each year.
- Sheffield Corp. purchased equipment for $15900 on December 1. It is estimated that annual depreciation on the computer will be $3180. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: debit Depreciation Expense, $12720; credit Accumulated Depreciation, $12720. debit Depreciation Expense, $3180; credit Accumulated Depreciation, $3180. debit Equipment, $15900; credit Accumulated Depreciation, $15900. debit Depreciation Expense, $265; credit Accumulated Depreciation, $265.Question 5 The following year-end unadjusted trial balance is for Jaya as at 31 December 2018. JayaUnadjusted Trial Balance as at 31 December 2018 RM Land 610,000 Building 335,000 Accumulated Depreciation - Building Office Equipment 40,000 Accumulated Depreciation - Equipment Investment in Shares 380,000 Intangible Assets - Licensing Agreement 70,000 Supplies 41,900 Accounts Receivable 106,400 Cash 33,500 Accounts Payable Supplies Payable Long-term Note Payable Jaya , Capital Jaya , Withdrawals 90,000 Services Fees Earned Salaries Expense 213,500 Insurance Expense 25,800 Utilities Expense 32,000 Repair Expense 13,500 Interest Expense 15,000 2,006,600…a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. d. Assuming that the equipment had been sold on January 3 of Year 4 for $410,485 instead of $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.