Compute the revised annual depreciation on each asset in 2022. Revised annual depreciation eTextbook and Media List of Accounts (b) Building Date Account Titles and Explanation Dec. 31 14,900 Warehouse Prepare the entry to record depreciation on the building in 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts) 4,900 Debit Attempts: 1 of 4 used Credit
Q: Donald Martin, sales manager for Ivanhoe, Inc. has received numerous customer complaints about the…
A: ANSWER :- Definition: Delivery cycle time refers to the time taken by supplier, which starts from…
Q: Production Inc. has two divisions: Machining and Assembling. The Machining Division is currently…
A: Lets understand the basics.Transfer price concept come into picture when transfer is made from one…
Q: Using the following information, prepare a trial balance. Assume all asset, dividend, and expense…
A: Trial Balance: Trial balance is a statement in which closing balance of all ledger accounts are…
Q: Key figures for the recent two years of both Apple and Google follow. Apple $ millions Net income…
A: Lets understand the basics.Profit margin ratio is ratio which shows how much net income is earned as…
Q: Capital and Revenue Expenditures On February 13, Wellington Co. paid $3,030 to repair the…
A: Amount paid to repair the transmission is considered as an revenue Expenditure and should be…
Q: gma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Current assets: Cash Accounts receivable Supplies inventory Total current assets Plant and…
A: Lets understand the basics.Management prepares budget in order to estimate future profit and loss…
Q: Tombro Industries is in the process of automating one of its plants and developing a flexible…
A: As per our protocol we provide solution to the one question or up to first three sub-parts only but…
Q: Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount…
A: The value of an investment taken into account across its whole expected lifespan and then discounted…
Q: Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to…
A: Absorption costing:Absorption costing is compulsory under Generally Accepted Accounting Principles…
Q: Entry Explanation F 1 2 3 لنا 4 5 6 7 8 9 10 11 12 A F H D A G C H E D Cash Accounts Receivable…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a…
A: Hager's Land:Cost and book value = $576,000Fair value = $720,000Total Gain = Fair value - Book value…
Q: The following data is provided for Garcon Company and Pepper Company for the year ended December 31.…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: 1. Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the…
A: Bonds are the type of debt instrument that the government or corporation issues to raise money. The…
Q: Carlos Cavalas, the manager of Echo Products Brazilian Division, is trying to set the production…
A: Total requirement = Expected sales + Desired inventory ( end )Production requirement = Total…
Q: [The following information applies to the questions displayed below.] The following information is…
A: The journal entries are prepared to keep the record of day-to-day transactions of the business on…
Q: Complete the "Cost Reconciliation Schedule" part of the production cost report. Cost Reconciliation…
A: Lets understand the basics.Equivalent cost per unit calculate by the entity in order to allocate…
Q: The records for Carla Vista Company showed the following for 2025: Unearned revenue Accrued revenue…
A: The accrued revenue is the revenue earned but not received in cash.The unearned revenue is the…
Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021.…
A: Self-Employment Taxes:For the self-employment income Kyle earned during the first three months of…
Q: At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year…
A: The lease is a legal agreement between the lessor and the lessee. The lessor transfers the assets to…
Q: Can I please get someone to check my work and explain where I went wrong please. Gomez Company…
A: Journal Entry - Method of recording financial transactions in the book of original entry by debiting…
Q: Exercise 4-6A (Algo) Allocating overhead costs among products LO 4-3 Rooney Company makes three…
A: Allocation rate :— It is the rate used to allocate manufacturing overhead to cost object. It is…
Q: Required information Problem 4-47 (LO 4-3) (Algo) [The following information applies to the…
A: Tax return is filed by the taxpayers to the tax authorities of the respective tax. In tax filing,…
Q: Joe's Company produces a single product and has prepared this standard cost sheet for one unit of…
A: Lets understand the basics.Material price variance is a variance between the ratr at which material…
Q: Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio (in ratio form:…
A: Partnership refers to an agreement where two or more people come together for a common goal. The…
Q: QUESTION CAP plc is a listed project company that owns and operates a large number of farms…
A: SOLUTION :- a. Beta is a measure of systematic risk or undiversifibale risk that a stock is exposed…
Q: Match the 10 system failures with a control plan that would best prevent the system failure from…
A: Internal controls are the steps a business takes to safeguard its assets, ensure the reliability and…
Q: a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 20Y4 20Y3 Quick…
A: A ratio that measures the ability of a company to pay current liability through its near cash or…
Q: Required: 1-a. Prepare contribution format income statements for April.
A: The income statement is one of the types of financial statements which presents the financial…
Q: Mr. and Mrs. L are calendar-year, cash-basis taxpayers. They have their own business, which they…
A: The investment interest deduction is subject to certain limitations, including the deduction cannot…
Q: a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 2014 2013 Quick…
A: Ratio analysis used identify the business performance of the company.It is used to measure financial…
Q: Kohler Corporation reports the following components of stockholders' equity at December 31, 2019.…
A: The treasury stock includes the own shares of the company repurchased from the shareholders. The…
Q: Exercise 2-1 (Algo) Compute a Predetermined Overhead Rate [LO2-1] Harris Fabrics computes its…
A: Lets understand the basics.Predetermined overhead rate is an allocation rate that is used to apply…
Q: Pastina Company sells various types of pasta to grocery chains as private label brands. The…
A: Financial StatementsIncome statement is a financial statement its show a company's expenses and…
Q: Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were…
A: Lets understand the basics.As per accounting equation, total assets are always equals to total…
Q: Lucia Company has set the following standard cost per unit for direct materials and direct labor.…
A: Direct material variance :— It is the difference between actual direct material cost and standard…
Q: The investment committee of Sentry Insurance Co. is evaluating two projects, office expansion and…
A: Net Present value is present value of cash flow minus initial investment.
Q: d. Determine the number of operating hours such that the present value of cash flows equals the…
A: Net cash flow is determined by reducing the cash outflows from the cash inflows of the organization.…
Q: Calculate the normal cost of the work in process inventory lost during the fire. Cost of the work in…
A: Work in process are the goods that are partly finished and fall between the status of Raw Material…
Q: ion Company changed from the completed-contract method to recognizing revenue over time…
A: Because of the change in accounting principle from the completed-contract method to the…
Q: Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's…
A: Cash receipts means the amount of cash collected by the entity from sales during a period.Cash…
Q: godo subject-Accounting
A: As per the accounting standard (IFRS 15) Revenue from contracts with customer which is based on 5…
Q: pute the MIRR statistic for Project I if the appropriate cost of capital is 12 percent. (Do not…
A: In this question, we will find out the MIRR (Modified internal rate of return) here we will find out…
Q: Divisional Income Statements with Service Department Charges Grael Technology has two divisions,…
A: The divisional income statement is one of the formats of financial statements used in an entity…
Q: Calculate the acid test ratio.
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Q: Sheridan Industries uses a process cost system. Products are processed first by Department A, then…
A: A company may have more than one process in different departments to complete the units. The process…
Q: Which statement best expresses a fundamental difference between the AICPA Code of Professional…
A: The methodologies used by the codes differ slightly. The International Code of Ethics evaluates…
Q: QUESTION: Manny Malhotra Inc., produces and sells high quality fishing rods, with most sales…
A: CVP analysis is used to identify the changes in costs and volume affect a company's operating…
Q: Ferris Company began 2013 with 6.000 units of its principal product. The cost of each unit is 58. Me…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Cullumber Company is considering a long-term investment project called ZIP. ZIP will require an…
A: Cash payback period is a period in which the amount of initial investment will came back.
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.
Please donot provide solution in image format and it should be in step by step format and provide fast solution
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Worksheet Devlin Company has prepared the following partially completed worksheet for the year ended December 31, 2019: The following additional information is available: (a) salaries accrued but unpaid total 250; (b) the 80 heat and light bill for December has not been recorded or paid; (c) depreciation expense totals 810 on the buildings and equipment; (d) interest accrued on the note payable totals 380 (this will be paid when the note is repaid); (e) the company leases a portion of its floor space to KT Daniel Specialty Company for 50 per month, and KT Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals 80; (g) bad debts expense is 70; and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2017. Required: 1. Complete the worksheet. (Round to the nearest dollar.) 2. Prepare the companys financial statements. 3. Prepare (a) adjusting and (b) closing entries in the general journal.During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.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.
- Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000Using the following information, A. Make the December 31 adjusting journal entry for depreciation. B. Determine the net book value (NBV) of the asset on December 31. Cost of asset, $195,000 Accumulated depreciation, beginning of year, $26,000 Current year depreciation, $13,000Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. Required: 1. Transfer the account balances to a 10-column worksheet and prepare a trial balance. 2. Prepare the adjusting entries in the general journal and complete the worksheet. 3. Prepare the companys income statement, retained earnings statement, and balance sheet. 4. Prepare closing entries in the general journal.
- At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.Balance Sheet and Notes Listed here in random order are Wicks Construction Limiteds balance sheet accounts and related ending balances as of December 31, 2019: Additional information: 1. The company reports on the balance sheet the total amount for inventories and the net book value of property, plant, and equipment, with the related details for each account disclosed in notes. 2. The straight line method is used to depreciate buildings, machinery, and equipment, based upon their cost and estimated residual values and lives. A breakdown of property, plant, and equipment shows the following: land at a cost of 32,000, buildings at a cost of 182,400 and a net book value of 120,200, machinery at a cost of 63,900, and related accumulated depreciation of 18,600, and equipment (40% depreciated) at a cost of 53,000. 3. Patents are amortized on a straight line basis directly to the Patent account. 4. Inventories are listed at the lower of cost or market value using an average cost. The inventories include raw-materials, 22,200; work in process, 34,700; and finished goods, 41,600. 5. Common stock has a 10 par value per share, 12,000 shares are authorized, and 6,280 shares have been issued. 6. Preferred stock has a 100 par value per share, 1,000 shares are authorized, and 400 shares have been issued. 7. The investment in bonds is carried at the original cost, which is the face value, and is being held to maturity. 8. Short-term investments in marketable securities were purchased at year-end. 9. The bonds payable mature on December 31, 2024. 10. The company attaches a 1-year warranty on all the products it sells. Required: 1. Prepare Wicks Constructions December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare notes to accompany the balance sheet that itemize company accounting policies; inventories; and property, plant, and equipment. 3. Next Level Compute the current ratio and the quick ratio. How do these two ratios provide different information about the companys liquidity? Why are these ratios useful?Comprehensive: Balance Sheet, Schedules, and Notes The following is an alphabetical listing of Stone Boat Companys balances sheet accounts and account balances on December 31, 2019: Additional information: 1. The company reports on the balance sheet the net book value of property and equipment and long-term liabilities (known as control accounts). The related details are disclosed in the notes. 2. The straight-line method is used to depreciate property and equipment based upon cost, estimated residual value, and estimated life. The costs of the assets in this account are: land, 29,500; buildings, 164,600; store fixtures, 72,600; and office equipment, 30,000. 3. The accumulated depreciation breakdown is as follows: buildings, 54,600; store fixtures, 37,400; and office equipment, 17,300. 4. The long term debt includes 12%, 36,000 face value bonds that mature on December 31, 2024, and have an unamortized bond discount of 1,000; 11%, 48,000 face value bonds that mature on December 31, 2025, have a premium on bonds payable of 1,800, and whose retirement is being funded by a bond sinking fund; and a 13% note payable that has a face value of 6,200 and matures on January 1, 2022. 5. The non-interest-bearing note receivable matures on June 1, 2023. 6. Inventory is listed at lower of cost or market; cost is determined on the basis of average cost. 7. The investment in affiliate is carried at cost. The company has guaranteed the interest on 12%, 50,000, 15-year bonds issued by this affiliate, Jay Company. 8. Common stock has a 10 par value per share, 10,000 shares are authorized, and 1,000 shares were issued during 2019 at a price of 13 per share, resulting in 8,000 shares issued at year-end. 9. Preferred stock has a 50 par value per share, 2,000 shares are authorized, and 140 shares were issued during 2019 at a price of 55 per share, resulting in 640 shares issued at year-end. 10. On January 15, 2020, before the December 31, 2019, balance sheet was issued, a building with a cost of 20,000 and a book value of 7,000 was totally destroyed. Insurance proceeds will amount to only 5,000. 11. Net income and dividends declared and paid during the year were 50,500 and 21,000, respectively. Required: 1. Prepare Stone Boats December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare a statement of shareholders equity for 2019. (Hint: Work back from the ending account balances.) 3. Prepare notes that itemize the balance sheet control accounts and those necessary to disclose any company accounting policies, contingent liabilities, and subsequent events. 4. Next Level Compute the debt-to-assets ratio at the cud of 2019. What is your evaluation of this ratio if it was 39% at the end of 2018? Use the following information for P415 and P416: McCormick Company, Inc. is one of the worlds leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with sonic of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormicks consolidated balance sheets for 20X2 and 20X3 follow.
- Soon after December 31, 2019, the auditor requested a depreciation schedule for trucks of Jarrett Trucking Company, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2016 to 2019, inclusive. The following data were in the Trucks account as of January 1, 2016: The Accumulated DepreciationTrucks account, previously adjusted to January 1,2016, and duly entered in the ledger, had a balance on that date of 16,460. This amount represented the straight-line depreciation on the four trucks from the respective dates of purchase, based on a 5-year life and no residual value. No debits had been made to this account prior to January 1, 2016. Transactions between January 1,2017, and December 31, 2019, and their record in the ledger were as follows: 1. July 1, 2016: Truck no. 1 was sold for 1,000 cash. The entry was a debit to Cash and a credit to Trucks, 1,000. 2. January 1, 2017: Truck no. 3 was traded for a larger one (no. 5) with a 5-year life. The agreed purchase price was 12,000. Jarrett paid the other company 1,780 cash on the transaction. The entry was a debit to Trucks, 1,780, and a credit to Cash, 1,780. 3. July 1, 2018: Truck no. 4 was damaged in a wreck to such an extent that it was sold as junk for 50 cash. Jarrett received 950 from the insurance company. The entry made by the bookkeeper was a debit to Cash, 1,000, and credits to Miscellaneous Revenue, 50, and Trucks, 950, 4. July 1, 2018: A new truck (no. 6) was acquired for 20,000 cash and debited at that amount to the Trucks account. The truck has a 5-year life. Entries for depreciation had been made at the close of each year as follows: 2016, 8,840; 2017, 5,436; 2018, 4,896; 2019, 4,356. Required: 1. Next Level For each of the 4 years, calculate separately the increase or decrease in earnings arising from the companys errors in determining or entering depreciation or in recording transactions affecting trucks. 2. Prove your work by one compound journal entry as of December 31, 2019; the adjustment of the Trucks account is to reflect the correct balances, assuming that the books have not been closed for 2019.Worksheet for Service Company Whitaker Consulting Company has prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2019: Additional information: (a) On January 1, 2019, the company had paid 2 years rent in advance at 100 a month for office space, (b) the office equipment is being depreciated on a straight-line basis over a 10-year life, and no residua! value is expected, (c) interest of 150 has accrued on the note payable but has not been paid, and (d) the income tax rate is 30% on current income and will be paid in the first quarter of 2020. Required: 1. Complete the worksheet. 2. Prepare financial statements for 2019.Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.