epeat part (b) assuming Marigold Corp. uses the double-declining-balance method of depreciation. (Credi utomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Ent mnd enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery Debit 4366 Cred
Q: The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation…
A: It is given that - 2 partners are retiring and the partnership is terminating. also, the balance…
Q: Brutus Corporation, a newly formed corporation, has the following transactions during May, its first…
A: 1. FIFO Method - Under FIFO Method, Inventory purchased first is sold first. 2. LIFO Method - Under…
Q: C Milan Sales and Service entered into a lease agreement to lease a fleet of six vehicles from FC…
A: A lease can be defined as financial if certain conditions are satisfied, if the conditions specified…
Q: ournal entries for a series of transactions Prepare journal entries in the General Fund for each of…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: the operating incomes from absorption costing and variable costing are the same when A. Units…
A: Absorption Costing and Variable Costing are the two methods of ascertaining cost and determining…
Q: avoidable and unavoidable cost?
A: Costs are the amount incurred for the different purposes of the business. It is defined in monetary…
Q: Required information [The following information applies to the questions displayed below] Doyle…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: QUESTION 1 a) Under what conditions that a discount bond has a negative nominal interest rate? Is it…
A: Bonds- A bond is a contract between two parties that specifies the principal amount to be paid at…
Q: 2) A restaurant purchases chicken breast four times each week and conducts an inventory weekly. The…
A: In weighted averages, each number is assigned importance (or weight). A weighted average could be…
Q: L. Burnett began Burnett Refinishing Service on July 1. Selected accounts are shown below as of July…
A: Financial statements (FS) are those statements which states the financial health (FH) as well as…
Q: Women's Summer Hockey Ltd. (WSHL) organizes and operates a women's hockey league between April and…
A: Journal entries refers to the one which forms the accounting basis and it reports the daily event of…
Q: local government's basic financial statements would include a statement of cash flows for all
A: Proprietary Fund Types
Q: Sims Company began operations on January 1. Its cost and sales information for this year follow. $…
A: In the context of the given question, we are required to prepare the variable costing income…
Q: identify the main issues that separate GAAP standards and international standards. Explain them to…
A: It is important to understand the main issues that separate GAAP standards and international…
Q: 2. True or false? Explain (a) (b) "When hourly wage increases, one should work more hours." "When…
A: The hourly wage system is a popular system of giving wages to employees. The workers get according…
Q: Jorge and Anita, married taxpayers, earn $158,000 in taxable income and $42,000 in Interest from an…
A: Interest is non taxable income So the Taxable income is $ 158000 Average tax rate = Total tax…
Q: Contrast the effects of the three depreciation methods on (1) depreciation expense, (2) net income,…
A: 3.) Accumulated Depreciation 4.)Carrying Amount Straight line Depreciation method Increases by…
Q: I forgot to add the final question. Compute the income from operations for sales volume of 18,000…
A: Lets understand the basics. For determining income from operation, we need to use below formula.…
Q: II. Directions: Assume that you are an "Accountant" of ABAKADA Company. The following statement/s…
A: Working notes Catalina and mahihiwagang made payment after discount period so no discount will be…
Q: For the following situations, identify whether the situation represents a violation or a correct…
A: There are principles and assumptions based on which whole accounting depends regarding how to enter…
Q: Journalize the entries to record the following selected transactions: 20Y5 May 1 Issued the bonds…
A: Journal entries refers to the recording of financial transaction in the books of the company during…
Q: What are the accounting entries required to record sales on credit of $10,000, on which sales tax is…
A: Lets understand the basics. Journal entry is required to make to record financial event and…
Q: A company with excess capacity must decide between scrapping or reworking units that do not pass…
A: Incremental income is the amount of extra money earned by putting an extra effort on products or…
Q: er to the ne
A: A. Compute the proceeds from the sale of bonds as follows: A B C (A*B)+(A*C) Period…
Q: Johnson and Gomez, Inc., is a small firm involved in the production and sale of electronic business…
A: In order to determine the contribution margin per unit, the variable cost per units are required to…
Q: During the year, Graham International made the following expenditures relating to plant, machinery,…
A: The costs that are expensed for regular repairs and maintenance during a particular period are…
Q: In 2022, Leo construction traded in a light duty pickup truck that had a book value of $18,000. A…
A: In 2022, Leo construction bought a light duty pickup truck having a fair market value of $55,236.…
Q: When using a standard cost system what is the report that summarizes actual costs, standard costs,…
A: The correct option with proper explanation are as follows
Q: William sold Section 1245 property for $28,000 in 2021. The property cost $41,000 when it was…
A: Given that, Sales value of property = $28,000 Cost of property = $41,000 Depreciation claimed =…
Q: Innovative Products reported net income of $218,000. Beginning and ending inventory balances were…
A: Cash flow statement includes: Cash flows from operating activities Cash flows from investing…
Q: You are looking at purchasing a new computer for online class. Computer A costs $4000 now, and you…
A: Computer A Computer B Cost of Purchase 4000 2500 Upgrade N.A at Year 2 End Upgrade Cost…
Q: At the end of March 2021, there were 700 units of a product manufactured by D & Y Manufacturing. The…
A: Introduction: Production overheads: Manufacturing overhead, which includes a company's manufacturing…
Q: Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State…
A: A flexible budget refers to the type of budget which changes or adapts to change as per the…
Q: Office Jungle Company sells plants and provides plant watering and pruning services to office…
A: Revenue should be recognise when Performance obligations satisfied and goods and services actually…
Q: Required information [The following information applies to the questions displayed below.] Bergo…
A: Predetermined Overhead Rate: It is utilized to estimate future manufacturing costs. It is an…
Q: Target Ltd manufactures dart boards and its budget for its first month of trading showed the…
A: Lets understand the basics. Generally two costing system are followed by the entity which are, (1)…
Q: On June 30, 2020, Ayayai Company issued $3,810,000 face value of 16%, 20-year bonds at $4,956,520, a…
A: Introduction: A journal entry is a recording of a business contract in the accounting system of a…
Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…
A: calculation of depreciation are as follows
Q: Novak Corporation issues $570,000 of 9% bonds that are due in 8 years and pay interest…
A: Issue price of bond. Interest x PVAF (r,n) + Principal x PVAF (r,n) Where, r = 8%/2 = 4% or 0.04 n =…
Q: Strait Co. manufactures office furniture. During the most productive month of the year, 3,300 desks…
A: Variable costs are those which varies with the change in the level of production. It is the cost…
Q: a Compute Work in Process Inventory at April 30. (if an input held is not used in the table, leave…
A: Finished inventory on a particular date is the inventory which has been available and ready to be…
Q: The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its…
A: A partnership is a kind of business structure in which two or more people agree to carry out…
Q: analysis er the question 100 00 Ef 4 10
A: Since you have posted a question with multiple subparts, we will solve the first 3 subparts for you.…
Q: J, VAT registered taxpayer, had the following data on importation in 2022: Invoice cost (exchange…
A: Here discuss about the details of the computation of VAT payable for the purchase on importation and…
Q: Why do you think investor would want more than 50% large percentage control of a company as far as…
A: Control of the company: To have control over a firm is to own a sufficient number of voting shares…
Q: Davis Corporation reported the following financial data for one of its divisions for the year;…
A: Sales is the amount of goods or inventory sold during that period. Income is the earning or amount…
Q: ims Company began operations on January 1. Its cost and sales information for this year follow.…
A: The income statement can be prepared using various methods as variable costing and absorption…
Q: Listed below are the current Accounting Assumptions and Principles…
A: Accounting Concept/ Principal/ Assumption/ conventions: These are known as Generally Accepted…
Q: Siemens AG invests €80,000,000 to build a manufacturing plant to build wind turbines. The company…
A: The term "payback time" refers to the amount of years needed to recoup the initial monetary outlay.…
Q: During January, its first month of operations, Dieker Company accumulated the following…
A: Journal Entry :— When transaction occur then the transaction is first recorded as journal entry to…
I have a doubt in the last entry amount
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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. 10,000On 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.Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of 20,000. Required: Compute the depreciation expense for 2019 under each of the following methods: 1. straight-line 2. sum-of-the-years-digits 3. double-declining-balance 4. Next Level What effect does the depreciation of the equipment have on the analysis of rate of return?
- 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 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.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.
- Revision of Depreciation On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was expected to have a residual value of $12,000 at the end of its 5-year useful life. On January 1, 2019, Blizzards-R-Us concluded that the machine would have a remaining useful life of 6 years with a residual value of $3,600. Required: 1. Determine the revised annual depreciation expense for 2019 using the straight-line method. 2. CONCEPTUAL CONNECTION How does the revision in depreciation affect the Blizzards-R-Us financial statements?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.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.
- Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.Cost of Asset and Depreciation Method Heist Company purchased a machine on January 2, 2019, and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of 5,000. The following costs relate to the acquisition and use of the machine during the first year of its operations: Required: 1. Compute the depreciation expense for 2019 and 2020. 2. Next Level What is the effect on the financial statements if the company used the straight-line method instead of the 150%-declining-balance method?Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2018, Bloomer discovered that the machine would not be useful beyond December 31, 2021, and estimated its value at that time to be $2,000. Required Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2016 to 2021. Was the depreciation recorded wrong in 2016 and 2017? If so, why was it not corrected?