Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $52,650. The equipment was expected to have a useful life of three years, or 3,780 operating hours, an a residual value of $1,620. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then round the answer for each year to the nearest whole dolla a. Straight-line method Year Amount Year 1 Year 2 Year 3 $ Year 4 i method

Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $52,650. The equipment was expected to have a useful life of three years, or 3,780 operating hours, an a residual value of $1,620. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then round the answer for each year to the nearest whole dolla a. Straight-line method Year Amount Year 1 Year 2 Year 3 $ Year 4 i method

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter6: Investing And Financing Activities

Section: Chapter Questions

Problem 4.5C

See similar textbooks

Similar questions

I have choosen Kellogg's (2020): NYSE_K_2020.PDF (annualreports.com) Explain the impact of following business decisions on financial statements (on five accounts – Assets/ Liabilities/ Equity/ Revenue and Expense) using double-entry book-keeping system: Purchase of a new asset during the year for $100,000, the age of which is estimated at 5 years, post which it can be sold for $10,000. Buying 1000 units of Raw-material at $150 per unit, and selling 750 units of finished goods for $670 per unit. Buying patents for $20000 which is going to give a benefit for 20 years.
0J une 2017 (the last day of the financial (Marks: 25 year) Moore Retailers sold one of their office amDuters with an original cost price of R28 500. The computer was sold on credit to one of their am plovees for R7 500. Moore Retailers depreciate all their computers at 30% per year according to the reducing balances method. On 1 July 2016 the accumulated depreciation on the computer was R14 535.Required:Q.3.1 Calculate the profit or loss on the sale of the office computer (Office equipment) by completing the asset disposal account in your answer book.Round all amounts to the nearest rand.Ignore VAT for this question.Q.3.2 Journalise all transactions relating to the sale of the office computer (Office equipment) in the general journal at 30 June 2017.Narrations are not required.gnore VAT for this question.Q.3.3 If Moore Retailers purchased a new computer for R32 775 (including VAT), what amount will be posted to the office equipment account in the general ledger to account for this…
1. Wang Company uses the double declining balance (DDB) method of depreciation on its fixed assets. On January 1, 2009, Wang purchased a machine: Cost = $125,500Salvage value = $13,375Useful life = 5 years Important: Round all answers to the nearest dollar (e.g. $2,535). What is the balance of Accumulated Depreciation - Machine on December 31, 2010? $ 2. Wang Company uses the double declining balance (DDB) method of depreciation on its fixed assets. On January 1, 2009, Wang purchased a machine: Cost = $125,500Salvage value = $13,375Useful life = 5 years Important: Round all answers to the nearest dollar (e.g. $2,535). What is the book value of the machine on December 31, 2011? 3. Wang Company uses the double declining balance (DDB) method of depreciation on its fixed assets. On January 1, 2009, Wang purchased a machine: Cost = $125,500Salvage value = $13,375Useful life = 5 years Important: Round all answers to the nearest dollar (e.g. $2,535). What is Depreciation Expense on the…
i) Company X Financial Year ends March 31. A laptop purchased 02 August 2018 at a cost of P9,500 was disposed off in January 2020 for P6800. Assuming the organisation follows local GAAPS on depreciation, provide the Journal Entries for this transaction. Outline all assumptions used. (ii) The following in being considered: Purchase of an office building worth P1M from unrestricted funding. Currently, the office building is on a 2-year lease, with rentals of BWP22,000 per month. 11 Provide your recommendations to the Finance Manager. What would be the possible effect on the Financial Health of the organisation if these transactions are approved (iii) List any key financial controls for an NGO and why these are important. (iv) Company X’s year-end is March 31. It is now April 4. A staff member asks you to process an unpaid invoice with details as follows: The invoice is for bus transportation in the amount of P800 and is dated April 2. The invoice indicates the charges relate to…
ng Enabled: Final Exam S23An energy production company has the following information regarding the acquisition of new gas-turbine equipment.Purchase price = $820,0002Transoceanic shipping and delivery cost = $4,300Installation cost (1 technician at $1,600 per day for 4 days) = $6,400Tax recovery period = 12 yearsBook depreciation recovery period = 8 yearsSalvage value = 12% of purchase priceOperating cost (with technician) = $185,000 per yearThe manager of the department asked your friend in accounting to enter the appropriate data into the tax-accountingprogram. What are the values of B, n, and Sin depreciating the asset for tax purposes that he should enter?The value of B is determined to be $The value of Sis determined to be $The value of n is determined to beSavedyears.
S Ltd is considering buying the business of R Ltd the final accounts of which for the last 3years were as follows: MGC-FN-705 Page 5 of 5Profit and loss account for the 3 years ended 31st Dec (Rs.)Particulars 2011 2012 2013Sales 200,000 190,000 224,000Material Consumed(100,000) (95,000) (112,000)Business Exp (80,000) (80,000) (82,000)Depreciation (12,000) (13,000) (14,000)Net Profit 8000 2000 16,000 Balance sheet as at 31st Dec (Rs.)Particulars 2010 2011 2012 2013Fixed Assets(at cost) 100,000 120,000 140,000 180,000Less: Depreciation (70,000) (82,000) (95,000) (109,000)Net fixed Assets 30,000 38,000 45,000 71,000Stock in Trade 16,000 17,000 18,500 21,000Sundry Debtors 21,000 24,000 26,000…
Mash Traders purchased a Vehicle during the year 1 August 2013 at cost R450 000 at 15% depreciation on Book Value Method year ending 28 February 2014. Calculate the Depreciation on the Vehicle. Select one: a. R39 375 b. R262 500 c. R67 500 d. R101 250
help me Question 6The following trial balance was extracted from the ledger of Juliana at 31 December2020.JulianaTrial Balance as at 31 December 2020RM RMLand at cost 26,000Plant at cost 83,000Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases 516,000Returns inwards 47,000Discount allowed 4,000Capital at 1st January 2020 230,000Drawings 14,000Provision for doubtful debts at 1 January 2020 23,000Salaries Expense 44,000Administration costs 38,000Bank 75,000Bad debts written off 77,000Inventory at 1 January 2020 84,0001,164,000 1,164,000Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciationon office equipment is charged at 20% per annum using the reducingbalance method. Administration costs include insurance prepaid of RM3,000. Salary accrued amount to RM2,000. The…
Kleen Company acquired patent rights on January 10 of Year 1 for $344,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $17,000. If required, round your answers to the nearest dollar. Question Content Area a. Determine the patent amortization expense for Year 4 ended December 31.$fill in the blank 88c643fcdfe1040_1 Feedback Area Feedback For intangible assets with finite lives, a company uses the straight-line method to calculate amortization. If a company successfully defends a patent it becomes part of the cost of the patent. If the company loses a lawsuit regarding a patent infringement, then the patent is written off. Question Content Area b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank. blank Amortization Expense-Patents…
DO NOT COPY ANOTHER ANSWER THAT'S ALREADY GIVEN. Use MACRS to compute the depreciation schedule for office furniture purchased for $80,000 (use the 7 yr depreciation schedule). Assume salvage value is $10,000
tudent question Time to preview question: 00:09:37 Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $102,000, and it has claimed $33,800 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: Assuming that Hauswirth receives $80,500 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $80,500, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. Assuming that Hauswirth receives $27,500 in cash in year 0 and a $88,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth's…
business: sport ca owner: Carlos panent business start October 1, 2023 monthly sale: 4000 montly rent: 3700 montly electricity: 327 October 01, 2023, purchase machinery on credit 90000 usage period 3 years, estimated residual value 66000, straight line method October 01,2023 purchase truck on credit 44000, usage period 3 years, estimated residual value 17000, declining balance method rate 27% october 01,2023 invested 200000. preparw balance sheet at March 31, 2026.