cars, Company sed three ma turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and each selected a different method. Infor- mation concerning the machines is summarized below. Machine Acquired Cost 1 1/1/12 2 1/1/13 3 11/1/15 Salvage Useful Life in Years Value $105,000 $5,000 180,000 10,000 125,000 15,000 10 8 6 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 25,000. Actual hours of use in the first 3 years were 2015, 2,000; 2016, 4,500; and 2017, 5,500. Instructions (a) Compute the amount of accumulated depreciation on each machine at December 31, 2015. (b) If Machine 2 had been purchased on May 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2013 and (2) 2014?

cars, Company sed three ma turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and each selected a different method. Infor- mation concerning the machines is summarized below. Machine Acquired Cost 1 1/1/12 2 1/1/13 3 11/1/15 Salvage Useful Life in Years Value $105,000 $5,000 180,000 10,000 125,000 15,000 10 8 6 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 25,000. Actual hours of use in the first 3 years were 2015, 2,000; 2016, 4,500; and 2017, 5,500. Instructions (a) Compute the amount of accumulated depreciation on each machine at December 31, 2015. (b) If Machine 2 had been purchased on May 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2013 and (2) 2014?

Name: In recent years, Darnell Company purchased three machines. Because of
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Description: In recent years, Darnell Company purchased three machines. Because of heavyturnover in the accounting department, a different accountant was in charge of selectingthe depreciation method for each machine, and each selected a different method. Infor-

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information (The following information applies to the questions displayed below.) At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Brunswick Corporation. The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts. Invoice price paid for asset Installation costs Renovation costs prior to use Machine A Machine B Machine C $ 13,900 $ 34,400 $ 14,500 2,600 1,700 2,400 2,700 900 2,100 By the end of the first year, each machine had been operating 5,200 hours. 2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) ESTIMATES Residual Value $1,600 2,200 1,600 Depreciation Method Life 6 years 73,000 hours 5 years Machine A Straight-line Units-of-production Doub le-declining-balance…
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Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $139,100 has an estimated useful life of 16 years, has an estimated residual value of $8,700, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? %$4 Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $98,242. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entrY, leave it blank. Round your answers to the nearest whole dollar if required. Depreciation Expense-Equipment Accumulated Depreciation-Equipmentv Feedback 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank, Do not round intermediate calculations. Cash Accumulated Depreciation-Equipment V Loss on Sale of Equipment y 00 00 000 %24
TB MC Qu. 10-170 Mohr Company purchases a machine at the... Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. Depreciation expense in year 2 is: Multiple Cholce $4,800. $8.000. $9,600. $5,760. $14,400.
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Question Description The original cost of a machine was $60,000. After $45,000 of depreciation was recorded, the machine was traded in on a new machine of like purpose priced at $75,000. A $10,500 trade-in allowance was received on the old machine and the balance of $64,500 was paid in cash. Prepare the general journal entry to record this trade-in.