an assets book value is 19,400 on Dec 31, year 5. The asset has been depreciated at an annual rate of 4,400 on the straight-line method. assuming the asset is sold on Dec 31 year 5 for 16,400 the company should record?

Q: At the beginning of the current year, Andy Company has equipment that originally cost $70,000, has…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2016, Indians Corporation bought a factory equipment for P924,000 salvage value was…

A: Under Double declining balance method, depreciation is charged at an accelerated rate in the initial…

Q: If a fixed asset, such as a computer, were purchased on January 1 for $1,744 with an estimated life…

A: Correct option is c. Depreciation Expense               260.67       Accumulated Depreciation…

Q: Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The…

A: Methods of depreciation: Straight-line method Double declining method Sum of years digit method…

Q: An asset having a cost of $200 000 and accumulated depreciation of $40 000 is revalued to $240 000…

A: Part 1) Journal Entry  Particulars  Debit Credit Assets  A/c  Dr 80000   Accumulated…

Q: On January 1, 2022, Sheridan Company purchased equipment for $45360. The company is depreciating the…

A: Depreciation: Decreasing value of fixed assets over its useful life period.

Q: Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…

Q: Perdue Company purchased equipment on October 1 for $44,530. The equipment was expected to have a…

A: Depreciation refers to the amount that is charged on the fixed assets throughout their useful life…

Q: On September 20, 2020, Shamille Company purchased machinery for P7,600,000. Residual value was…

A: Depreciable cost=Cost-Salvage value=P 7,600,000-P 400,000=P 7,200,000 Sum of…

Q: Dickinson Company reported net income or $155,000 of $190,000 on the date of the sale was sold for…

A: Cash flow from operating activities: It shows the net cash flow generated or used by the operational…

Q: A business purchased equipment for $125,000 on January 1 of the current year. The equipment will be…

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

Q: On 1 January 2018 a company purchased new equipment for $700,000. It is estimated that the equipment…

A: Depreciation is an accounting technique that allocates the cost of a physical asset over its useful…

Q: Your firm bought a machine for £5,000 on 1 January 20X1, when it had a useful life of four years and…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. Under straight…

Q: company, which makes up its financial statements annually to 31 December, provides for depreciation…

A: 15% Reducing balance method

Q: If a fixed asset, such as a computer, were purchased on January 1st for $2,329 with an estimated…

A: Solution: monthly expense under straight-line depreciation = (2329 - 193) / 4  = $534

Q: At December 31, 20X0, the following existed in the records of Loren Company: Fixed Assets -…

A: Depreciation is amortization of the cost of fixed assets over its useful life.

Q: At the beginning of the current year, Andy Company has equipment that originally cost $50,000, has…

A: Here in this question, we are required to make journal entries to record depreciation and sale of…

Q: The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on…

A: Solution: A cash flow statement is a financial statements that shows how changes in income and…

Q: A. Equipment acquired on the first day of the current fiscal year for $100,000 has an estimated of…

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

Q: Beckman enterprises purchase a depreciable asset on Oct1, year1 at a cost of 132,000. the asset is…

A: The depreciation expense is incurred on fixed assets as reduction in the value of fixed assets with…

Q: what will the recorded depreciation for the current year be? $1,250. $1,667. $2,500. $5,000.

A: Given is: Original Cost of Asset = $10000 Useful life = 4 years Residual Value = $0

Q: Berman Company sold equipment on July 1, 2019 for $50,000. The equipment had cost $140,000 and had…

A: Berman Company sold equipment on July 1, 2019 for $50,000. The equipment had cost $140,000 and had…

Q: Machinery was purchased on January 1 for $86,240. The machinery has an estimated life of seven years…

A: Introduction:- Depreciation is a non cash expenses. Depreciation is charged on fixed asset over a…

Q: determine the net book value (NBV) of the asset on December 31 • Cost of asset, $250,000 •…

A: Depreciation is the decrease in the value of fixed assets due to the passage of time, normal wear…

Q: At the beginning of the current year, Andy Company has equipment that originally cost $40,000, has…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: On March 1, fixtures and equipment were purchased for $5,000 with a downpayment of $2,000 and a…

A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger…

Q: Equipment was acquired at the beginning of the year at a cost of $650,000. The equipment was…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: On 1 January 20X8 Hendrix Co revalued its property to $200,000. Up to the date of the revaluation,…

A: We have the following information: Cost of the property: $160,000 Accumulated Depreciation: $40,000…

Q: An asset's book value is $25,200 on January 1, Year 6. The asset is being depreciated $350 per month…

A: 1. Sale of an Assets - Sale of an assets is an activity of the organization which is non operating…

Q: Equipment was acquired at the beginning of the year at a cost of $77,580. The equipment was…

A: Under straight-line method  Depreciation per Year =( Historical cost - Salvage Value)/Useful Life

Q: Wolfpack Corp. has determined it should record depreciation expense of $40,000 for the year ending…

A: Depreciation can be referred to as a decline in the value of assets over the period of its useful…

Q: is to use the 200% double declining balance method for the first two years of the asset’s life and…

A: Accumulated Depreciation: The contra assets account which is used for accumulating all those…

Q: On April 1, 2020, an entity purchased machinery for P3,300,000. The machinery has an estimated…

A: Fixed assets that are used in a business will undergo certain wear and tear due to continuous…

Q: if an entity employs the sum-of-the-years digits (Syd) method of depreciation for an asset with an…

A: sum-of-the-years digits (Syd) method is one of the method to calculate accelerated depreciation when…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $600,000. The…

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: Assume that equipment is purchased at a cost of $10,000 with no residual value and is depreciated at…

A: Depreciation refers to the concept used in accounting which reduces the value of assets with the…

Q: On September 19, 2020, Sunland Company purchased machinery for $478000. Salvage value was estimated…

A: Solution: Under sum of years' digits method of depreciation. Depreciation is based on sum of digits…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $40,250. The…

A: a.   Formulas for the above table:

Q: Rahara Ltd purchased a piece of equipment for £600,000 on the Ist January 2021. The equipment is…

A: The question is related to Government Grant. Two methods of presentation in financial statements of…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $587,500. The…

A: Straight-line depreciation is a method of depreciation where the depreciation expenses for the life…

Q: a. What was the deareciation for the first year? Round your intermediate calculations to 4 decimal…

A: Double Declining balance of depreciation is an accelerated depreciation method that has higher…

Q: Equipment was acquired at the beginning of the year at a cost of $33,250. The equipment was…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/10 years) x 2 = 20%

Q: Peavey Enterprises purchased a depreciable asset for $31,000 on April 1, Year 1. The asset will be…

A: given that, Asset purchased as on 1 April  cost of the asset = $31000 method of depreciation = SLM…

Q: The GHI Company has the following Fixed Asset. The company prepares statements on a calendar year…

A: Given: Asset purchased = $7,000 Salvage value = $1,000 Life = 6years

Q: Blackpink has sold during the year a depreciable asset that cost P11,250 and had a carrying amount…

A: Here in this question, we are required to calculate amount of the adjusting entry for depreciation…

Q: suming the asse

A: Straight line depreciation & amortisation is a technique of calculating depreciation and…

Q: An entity purchased equipment on January 1, 20x1 for ₱5,000,000. The equipment had a useful life of…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.