Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of $114,800 has an estimated residual value of $4,600 and an estimated useful life of four years. Determine the following. % (a) The double-declining-balance rate (b) The double-declining-balance depreciation for the first year Feedback

Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of $114,800 has an estimated residual value of $4,600 and an estimated useful life of four years. Determine the following. % (a) The double-declining-balance rate (b) The double-declining-balance depreciation for the first year Feedback

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.23E: Adjustment for depreciation The estimated amount of depredation on equipment for the current year is...

See similar textbooks

Similar questions

The following information was extracted from the accounting records of DilataLtd on 30 June 2020: Land at cost (note 1). R 1 000 000Factory and office buildings at cost (note 1 and 2). ? Machinery and equipment (note 3). R3 000 000Motor vehicles (note 4). R 645 715 Accumulated depreciation: - Factory and office buildings ?- Machinery and equipment (30 June 2019). ( R1 080 000) - Motor vehicles (30 June 2019). R235 715 Additional information Dilata Ltd acquired and occupied the land on which both the factory and office buildings were erected on 1 July 2017 at an amount of R1 000 000. The land was revalued for the first time on 29 June 2020 by Mr King, an independent sworn appraiser at a fair value of R1 500 000. The factory…
You are presented with the following trial balance of Carl Ltd at 31 October 2018.Dr CrR,000 R,000Building at cost 740Buildings, accumulated depreciation, 1 November 2018 60Plant at cost 220Plant, accumulated depreciation, 1 November 2018 110Land at cost 235Bank balance 50Revenue 1,800Purchases 1,105Discounts received 90Returns inwards 35Wages 180Energy expenses 105Trade Payables 250Trade Receivables 320Inventory at 1 November 2018 160Allowance for debtors at 1 November 2018 10Administrative expenses 80Director's remuneration 70Accumulated profit at 1 November 2018 13010% Debenture 50Dividend paid 30R1 Ordinary shares 650Share premium account 803,280 3,280Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost,…
You are presented with the following trial balance of Carl Ltd at 31 October 2018.Dr CrR,000 R,000Building at cost 740Buildings, accumulated depreciation, 1 November 2018 60Plant at cost 220Plant, accumulated depreciation, 1 November 2018 110Land at cost 235Bank balance 50Revenue 1,800Purchases 1,105Discounts received 90Returns inwards 35Wages 180Energy expenses 105Trade Payables 250Trade Receivables 320Inventory at 1 November 2018 160Allowance for debtors at 1 November 2018 10Administrative expenses 80Director's remuneration 70Accumulated profit at 1 November 2018 13010% Debenture 50Dividend paid 30R1 Ordinary shares 650Share premium account 803,280 3,280Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost,…
You are presented with the following trial balance of Carl Ltd at 31 October 2018.Dr CrR,000 R,000Building at cost 740Buildings, accumulated depreciation, 1 November 2018 60Plant at cost 220Plant, accumulated depreciation, 1 November 2018 110Land at cost 235Bank balance 50Revenue 1,800Purchases 1,105Discounts received 90Returns inwards 35Wages 180Energy expenses 105Trade Payables 250Trade Receivables 320Inventory at 1 November 2018 160Allowance for debtors at 1 November 2018 10Administrative expenses 80Director's remuneration 70Accumulated profit at 1 November 2018 13010% Debenture 50Dividend paid 30R1 Ordinary shares 650Share premium account 803,280 3,280Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost,…
5-There is a fixture with an economic life of 5 years, which was purchased by our enterprise on 02.03.2018 to be used in the management department for a price of 50.000 TL. The depreciation of the said fixture is allocated by our company according to the “Diminishing Balances Method”. Accordingly, show the journal entry for the depreciation amount to be allocated on 31.12.2021.
2 Assume that Hider Darwesh Company purchased a Machine for OMR 25000 on 31st December 2013.The company charging OMR 3125 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 12500 and the company decided to sell this equipment for OMR 13000 on 31st Mar2018. Findout the profit or loss on sale of Machine and pass necessary journal entry in the books of Hider Darwesh Company. a. Dr Cash A/C 13000 Dr Accumulated depreciation A/c 13281and Cr Profit on sale of machine 1281 Cr Machinery A/C 25000 b. Dr Cash A/C 13000 Dr Accumulated depreciation A/c 13300and Cr Profit on sale of machine 1300 Cr Machinery A/C 25000 c. None of the given options d. Dr Cash A/C 13000 Dr accumulated depreciation 13000 and Cr Profit on sale of machinery OMR 1000 Cr Machinery A/C 25000 Clear my choice
E11.9 (LO1,2) (Component Depreciation) Morrow Manufacturing has equipment that is comprised of five components (amounts in thousands). Component Cost Estimated Residual Estimated Life (in years) A ¥40,500 5,500 10 B 33,600 4,800 9 C 36,000 3,600 8 D 19,000 1,500 7 E 23,500 2,500 6 Instructions a. Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. Assume that Morrow uses straight-line depreciation. b. Prepare the entry to record the replacement of component B for cash of ¥40,000. It was used for 6 years.
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…
Question 5The following balances were extracted from the books of Billion Precision for the yearended 31 December 2020.Dr (RM) Cr (RM)Land 500,000Building 200,000Motor vehicles 120,000Plant and machinery 70,000Profit b/f as at 01.01.2020 237,650Capital 438,000Acc depreciation as at 1.1.2020 :-Building 60,000-Motor Vehicles 69,250-Plant & Machinery 40,000Returns 3,600 4,100Revenue 800,000Purchases 400,000Discounts 5,0006Carriage inwards 7,700Opening inventory 52,000Provision for bad debts 2,000Trade receivables / Trade payable 66,000 43,200Advertising 18,000Staff training cost 4,000Bad debts 12,500Motor expenses 27,000Rental 90,000Bank 7,600Wages and salaries 126,0001,701,800 1,701,800Additional information:i.i. The provision for bad debts should be 4% of trade receivables.ii. Depreciation is to be charged as follows:-Buildings 2% on cost.-Plant and machinery 20% on cost.-Vehicles 25% on cost.iii. The closing inventories is valued at RM57,000.Required:a. Prepare the Statement of…
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…
The following information was extracted from the accounting records of Dilata Ltd on30 June 2020:Dr/(Cr)RLand at cost (note 1) 1 000 000Factory and office buildings at cost (note 1 and 2) ?Machinery and equipment (note 3) 3 000 000Motor vehicles (note 3) 645 715Accumulated depreciation:- Factory and office buildings ?- Machinery and equipment (30 June 2019) (1 080 000)- Motor vehicles (30 June 2019) (235 715)Additional information1. Dilata Ltd acquired and occupied the land on which both the factory and office buildingswere erected on 1 July 2017 at an amount of R1 000 000. The land was revalued for thefirst time on 29 June 2020 by Mr King, an independent sworn appraiser at a fair value of R1 500 000. The factory building was constructed on the land on 1 August 2017, andcompleted and available for use on 1 January 2018. The cost of this factory building amounted to R2 400 000.2. After expansion of operations, an office building was built. The office building was completed and available…
Compute the following: a1. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adjusting entry for the first year using the straight-line depreciation method. Omit explanations. If an amount box does not require, leave it blank. Page: 1 DATE DESCRIPTION POST.REF. DEBIT CREDIT 1 a1. fill in the blank 0d3791048fafffd_2 fill in the blank 0d3791048fafffd_3 1 2 fill in the blank 0d3791048fafffd_5 fill in the blank 0d3791048fafffd_6 2 a2. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Compute the book value at the end of the second year of the equipment's life. Book Value $fill in the blank a4b3dcffdff0fd9_1 b. Zip Company pays its employees every Friday. On January 4, 20--, the Company paid $2,200 for the 5 days beginning the previous Monday, December 31. Prepare the adjusting entry on December 31. Omit…