Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense)
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A:
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A: Working Note 1:Compute accumulated depreciation.
Q: On January 1, 2021, PANCHITAS CAFÉ purchased equipment for $180,000. The equipment had an estimated…
A: SLM depreciation = (cost - salvage value)/life = (180000-40000)/10 = 14000 SLM rate = SLM…
Q: . On January 1, 2019, Tarlac Company acquired a machine for P4,500,000. The machine has a useful…
A: Depreciation is a method of accounting that distributes the expense of a tangible or physical asset…
Q: Broadway Ltd. purchased equipment on January 1, 2019, for $630,000, estimating a seven-year useful…
A: Annual depreciation-Straight line = ($630,000 - $0)/7 Annual depreciation-Straight line = $90,000
Q: Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: On January 1, 2017, Jungkook Company purchased an equipment for P1,970,000. On this date, the…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: At the half of the year 2021, Rosary Co. reported the following information: Equipment t cost…
A: Revaluation surplus is the amount which is reported at the year-end after computing the surplus by…
Q: On January 2, 2020, Quezon Inc. purchased equipment with a cost of P10,500,000, a useful life of 12…
A: The impairment loss = = Carrying Amount - Recoverable Amount Where Recoverable Amount = 1) Fair…
Q: On January 1, 2018, Bray Company purchased for P2,400,000 a machine with a useful life of ten years…
A: Formula: Rate of Deprecation for DDB= 100%Life of Asset×2 Rate of Depreciation for SL= 100%Remaining…
Q: anuary 1, 2018, Hot Corporation acquired equipment at a cost of ₱1,800,000. Hot adopted the…
A: Depreciation is the decrease in the value of the assets due to their usage. Every asset has certain…
Q: On March 10, 2020, Waterway Limited sold equipment that it bought for $266,880 on August 21, 2013.…
A: Depreciation: When a new fixed asset is purchased, it does not have the price that was at the time…
Q: Teal Co. purchased a machine on January 1, 2018, for $588,500. At that time, it was estimated that…
A: Depreciation is the systematic decline in the value of non-current assets as a result of wear and…
Q: On January 1, 2017, Easy Company acquired an equipment for P8,000,000. The equipment is depreciated…
A: Thanks for the Question Bartleby's Guidelines “Since you have posted a question with multiple…
Q: Sheridan Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a…
A: Lets understand the basics. In stright line basis, depreciation is calculated in equal installment…
Q: On December 31, 2020, ABC Company has an item of machinery with a cost of P 4,500,000 and an…
A: Recoverable Amount is higher of the following : 1. Fair value less cost of disposal = P 25,00,000…
Q: Sage purchased equipment on January 2, 2017, for $78,900. At that time, the equipment had an…
A: Depreciation is reducing the value of the tangible fixed asset. It is provided as the expense of the…
Q: Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…
A: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…
Q: On January 2, 2017, Bangs Company purchased equipment costing P1,500,000. The estimated useful life…
A: As per IFRS 5, at the time of initial recognition of an asset as held for sale, asset shall be…
Q: Mickey Mouse Co. purchased equipment on January 1, 2019, at a cost of $50,000. Depreciation for 2019…
A: Introduction: Depreciation is a method of accounting that allocates the cost of a tangible or…
Q: A building was acquired on January 1, 2019 at an original cost of P16,000,000, with zero residual…
A: Rate of depreciation under double-declining balance method = (1/Useful life) * 100 * 2 Rate of…
Q: UMET Co. purchased equipment on January 1, 2020, at a cost of $600,000. The equipment is expected to…
A: Hi student Since there are multiple subparts,we will answer only first three subparts.…
Q: SYD method, how much is the depreciation expense
A: Estimated useful life = 5 years Sum of years' digits = 5 + 4 + 3 + 2 + 1 = 15
Q: Larkspur Enterprises purchased equipment on January 1, 2020, at a cost of €339,000. Larkspur uses…
A: As per relevant standard depreciation is mandatory and it is to be charged on the asset. Straight…
Q: On Jan 1, 2021, ABC Company acquired a machinery at a cost of P250,000. It was estimated to have a…
A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…
Q: On January 1, 2019, Tarlac Company acquired a machine for P4,500,000. The machine has a useful life…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: On December 31, 2020, Sardines Company has an item of machinery with a cost of $4,500,000 and an…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: On July 1, 2020, Concord Corporation purchased factory equipment for $283000. Salvage value was…
A: Solution: Under Double declining balance method of depreciation, depreciation is based on double the…
Q: Wardell Company purchased a mini computer on January 1, 2019, at a cost of $40,000. The computer has…
A: Calculation of Depreciation under straight line method: Cost of computer = 40000 residual value =…
Q: Larkspur Enterprises purchased equipment on January 1, 2020, at a cost of €339,000. Larkspur uses…
A: Unrealized gain on revaluation = Fair value of equipment - Carrying value of equipment
Q: On January 1, 2016, Cookie Inc. purchased an equipment for P1,970,000. On this date, the equipment…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: On December 31, 2020, Riverbed Inc. has a machine with a book value of $1,410,000. The original cost…
A: Solution: Depreciation in 2021 upto April 1, 2021 = $90,000*3/12 = $22,500 Book value of machine on…
Q: In January 2019, Winn Company purchased equipment at a cost on P5,000,000. The equipment has a…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: Apple Co. purchased a machine on January 1, 2019, for P180,000 cash. The machine has an estimated…
A: following is the answer to the given question
Q: On 1/1/2015 IMAR Co. has equipment with an initial cost of $200,000 with useful life of 10 years…
A: Straight line method of depreciation is depreciation method which charges equal amount of…
Q: On December 31, 2019, WITT Inc. has a building which has a cost of P42,000,000 and carrying amount…
A: A fixed asset is a non-current asset acquired by a business by making huge capital expenditures. A…
Q: On January 1, 2017, Loko Corporation acquired equipment at a cost of ₱1,800,000. Loko adopted the…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: BLACK JACK Company purchased an automotive equipment on June 30, 2018 for P3,000,000. At the date of…
A: Depreciation is charged on the value of fixed assets due to normal usage , wear and tear and change…
Q: On January 1, 2018, KingKong Corp. purchased an equipment with an estimated useful life of 8 years.…
A: Salvage Value P2,000 Useful Life (in years) 8 Sum of the year (1+2+3+4+5+6+7+8) 36…
Q: Healthlabs Ltd. purchased lab equipment for $16,500 on January 1, 2020. At that time, management…
A: Depreciation for 2020 = (Purchase Price - Salvage Value) / Useful Life in Years Depreciation for…
Q: ABC, Inc. purchased a crane on January 1, 2018, for P205,500. At the time of purchase, the crane was…
A: Under straight line method of recording depreciation, equal amount of depreciation expense is…
Q: racy Ltd. purchased a piece of equipment on January 1, 2016, for $1,260,000. At that time, it was…
A: Journal entries (JE) refer to reporting of the transaction into the entity books of accounts and it…
Q: On January 1, 2020, Miller Company purchased a machine for P2,750,000. The machine was depreciated…
A: Working: Total sum of 10 years = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = 55 years Sum of Remaining…
Q: In early 2020, Cattle Inc. acquired production machinery at a cost of £400,000 with no residual…
A: Net book value at the end of 2023 = cost - accumulated depreciation - impairment loss =…
Q: On January 1, 2020, A Company decided to sell one of its machineries with a cost of P3,400,000 and…
A: When the assets are categorised as held for sale, the net realisable value is considered for…
Blossom Enterprises purchased equipment on January 1, 2020, at a cost of €405,000. Blossom uses the straight-line
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Prepare the
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Account Titles and Explanation
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Debit
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Credit
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Depreciation Expense
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(To record depreciation expense)
please help me fill the table
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- Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
- 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.Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
- 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.At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been capitalized as a cost of the factory building in 2015 when it should have been treated as a cost of production equipment installation costs. As a result of the misclassification, the depreciation through 2018 was understated by 110,000, and depreciation for 2019 was understated by 90,000. What would be the consequences of correcting for the misclassification of the property cost? a. The taxpayer uses the FIFO inventory method, and 25% of goods produced during the period were included in the ending inventory. b. The taxpayer uses the LIFO inventory method, and no new LIFO layer was added during 2019.At the end of 2020, while auditing Sandlin Companys books, before the books have been closed, you find the following items: a. A building with a 30-year life (no residual value, depreciated using the straight-line method) was purchased on January 1, 2020, by issuing a 90,000 non-interest-bearing, 4-year note. The entry made to record the purchase was a debit to Building and a credit to Notes Payable for 90,000; 12% is a fair rate of interest on the note. b. The inventory at the end of 2020 was found to be overstated by 15,000. At the same time, it was discovered that the inventory at the end of 2019 had been overstated by 35,000. The company uses the perpetual inventory system. c. For the last 3 years, the company has failed to accrue salaries and w-ages. The correct amounts at the end of each year were: 2018, 12,000; 2019, 18,000; and 2020, 10,000. Required: 1. Prepare journal entries to correct the errors. Ignore income taxes. 2. Assume, instead, that the company discovered the errors after it had closed the books. Prepare journal entries to correct the errors. Ignore income taxes.
- Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.During 2019, White Company determined that machinery previously depreciated over a 7-year life had a total estimated useful life of only 5 years. An accounting change was made in 2019 to reflect the change in estimate. If the change had been made in 2018, accumulated depreciation at December 31, 2018, would have been 1,600,000 instead of 1,200,000. As a result of this change, the 2019 depreciation expense was 100,000 greater than it would have been if no change were made. Ignoring income tax considerations, what is the proper amount of the adjustment to Whites January 1, 2019, balance of retained earnings? a. 0 b. 100,000 c. 280,000 d. 400,000
