Question 2: PPE - Double Declining Balance MoonBucks is a coffee shop based in Vancouver.On May 1, 2019 MoonBucks bought a top-of-the-line coffee machine for $17,000 whichhas a useful life of 5 years. At the end of its useful life, the machine has a residual value of $2,000. MoonBucks uses the double declining balance method to calculate depreciation.MoonBucks' year end is December 31. Compute the depreciation for2019, 2020, 2021, 2022, 2023, and 2024, and provide the year - end journal entries whichPanko will record on December 31 for each of the years above, using the double - decliningbalance method.

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Description: Question 2: PPE - Double Declining Balance MoonBucks is a coffee shop based in Vancouver.On May 1, 2019 MoonBucks bought a top-of-the-line coffee machine for $17,000 whichhas a useful life of 5 years. At the end of its useful life, the machine has a

Double Declining method of depreciation is when depreciation is calculated at double declining rate…

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e double declining balance method to calcu cember 31. Compute the depreciation for 23, and 2024, and provide the year - end jo har 21 for each o of th

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 55APSA: Problem 2-55A Events and Transactions The accountant for Boatsman Products Inc. received the...

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Problem 2-55A Events and Transactions The accountant for Boatsman Products Inc. received the following information: Boatsman sent its customers a new price list. Prices were increased an average of 3% on all items. Boatsman accepted an offer of 5150.000 for land that it had purchased 2 years ago for 130,000. Cash and the deed for the property are to be exchanged in 5 days. Boatsman accepted $150,000 cash and gave the purchaser the deed for the property described in Item b. Boatmens president purchased 600 shares of the firms common stock from another stock-holder; The president paid $15 per share. The former stockholder had purchased the stock from Boatsman for $4 per share. Boatsman leases its delivery trucks from a local dealer. The dealer also performs maintenance on the trucks for boats man. Boats man received a $1.254 bill for maintenance from the dealer. Required: l. CONCEPTUAL CONNECTION Indicate whether or not each item qualifies as a transaction and should be recorded in the amounting system. Explain your reasoning. 2. CONCEPTUAL CONNECTION What accounting concept is illustrated by Item d?
Question 1 Sejati Bhd buys a new machinery for RM10,000 on 1 January 2018. The machinery is estimated to be used for 5 years. After exactly 3 years, however, the machinery is suddenly sold for RM5,000. Sejati Bhd always provide a full year’s depreciation in the year when assets are purchased and no depreciation in the year when assets are disposed. Required: Prepare the accumulated depreciation for machinery accounts and machinery disposal accounts for years 2018, 2019 and 2020: Using the straight-line depreciation method (assume 20% p.a.) Using the reducing balance depreciation method (assume 40% p.a.).
Question 1 On January 1, 2017 Baker purchased a new stamping machine for its plant. This new piece of equipment cost $120,000 and was recorded in Baker's accounting system with a $120,000 debit to the Equipment account and a $120,000 credit to the Cash account. Baker estimates that the stamping machine will last 5 years and will have no value at the end of those 5 years. At the end of January, February, March, April, and May, Baker made the correct depreciation adjusting entries. Select the June 30, 2017 adjusting entry Baker should make for June’s depreciation: (A) Accumulated depreciation: 2,000 ________ depreciation: expense _______ 2,000 (B) depreciation expense 12,000 _______ accumulated depreciation: ______ 12,000 (C) depreciation expense 2,000 ______ accumulated depreciation ______ 2,000 (D) depreciation espense 24,000 ________ cash _______ 2,000 loss of…
Question 1Sejati Bhd buys a new machinery for RM10,000 on 1 January 2018. The machinery is estimated to be used for 5 years. After exactly 3 years, however, the machinery is suddenly sold for RM5,000. Sejati Bhd always provide a full year’s depreciation in the year when assets are purchased and no depreciation in the year when assets are disposed. Required: Prepare the accumulated depreciation for machinery accounts and machinery disposal accounts for years 2018, 2019 and 2020: a. Using the straight-line depreciation method (assume 20% p.a.) b. Using the reducing balance depreciation method (assume 40% p.a.).
Question 2: On July 3, 2014, Alpha Traders bought equipment at a cost price of Rs.80, 000. The estimated depreciation rate per year is 40 percent, salvage value is Rs. 17, 050 and the estimated useful life is 3 years. The business fiscal year is from January to December and for this asset, half year convention is used in the year of purchase. Instructions: - Using the Declining Balance Method, prepare a depreciation schedule for all the three useful years. Give the adjusting entry to record the depreciation expense for 2015. Prepare an Income Statement extract for the year ended December 31, 2016 and a Statement of Financial Position extract as at December 31, 2017.
Accounting Question: 1. On April 22, 2023, a company purchased equipment for $129,200. The company expects to use the equipment for 12,000 working hours during its four-year life and that it will have a residual value of $14,000. The company has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,900 hours in 2023; 2,800 hours in 2024; 3,700 hours in 2025; 2,700 hours in 2026; and 1,100 hours in 2027. a) Prepare a depreciation schedule for the life of the asset under each of the following methods: 1. Straight-Line 2. Double diminishing-balance assuming a rate of 50% 3. Units-of-production b) Which method results in the lowest profit over the life of the asset? c) Which method results in the least cash used for depreciation over the life of the asset? Calculate partial-year depreciation using different methods. Please show all steps, thank you.
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question 4 ABC Company purchased equipment on May 1, 2021 costing $1,000,000. Its estimated salvage value is $80,000 and its expected life is eight years. Estimated total units of activity is 200,000 hours. Instructions: Calculate the depreciation expense (to the nearest dollar) by each of the following methods, SHOWING ALL CALCULATIONS. (a) Straight-line for 2021, 2022 (b) Double-declining balance for 2021, 2022 (c) Sum-of-the-years'-digits for 2021, 2022 (d) Units of activity method, assuming 15,000 hours in 2021 and 29,000 hours in 2022 (e) Record the entry for depreciation in 2021, assuming the double declining balance method is used (f) Calculate the book value of the asset at 12/31/22, assuming the straight line method is used
question 6 b) Labu Labi Sdn Bhd closes its accounts annually on 31 December. On 3 May 2022, the company disposed of a company car for RM60,000. The company acquired the car on a hire purchase basis on 1 July 2020 for RM200,000 for use by the managing director. The residual expenditure brought forward at 1 January 2022 was RM10,000. Required: b) Calculate the balancing adjustment which arises for Labu Labi Sdn Bhd on the disposal of the car on 3 May 2022 for the year of assessment 2022. c) Not all “factories” are considered as industrial buildings in tax law. Explain.
Q2 – A company purchased equipment on 1st January 2020 which cost £30,000 with a useful life of 3 years. On 31st October 2020, an update to the equipment meant that a revaluation was completed. The expert valued the equipment at £40,000 and recommended that the useful life from revaluation will be 5 years. (i) What is the journal to process the revaluation on 31st October 2020? (ii) What is the journal to process the depreciation to 31st December 2020 (Round to the nearest £)? (iii) What is the Net Book Value of the equipment on 31st December 2020? Please dont give me handwritten answer thanku
Question 2 Assume you work for a company as an accountant and you have been asked to calculatethe depreciation expense for each year of a new machine that your company purchasedon April 1, 2021, at a cost of $ 595,000. You have estimated that the machine will havea salvage value of $15,000. The machine is expected to be used for 36,400 workinghours during its 5-year life.
Question 2 On 31 August 2018, Musk Traders purchased a machine on credit for a cost price of R402 500 (including VAT at 15%). Machinery is depreciated over six years according to the straight‐line basis and there is no residual value on this machine, as it is highly specialised. Musk Traders has a30 June year‐end. Required: Calculate the depreciation and accumulated depreciation for 2019 and 2020. Round to the nearest Rand. Show all your workings