Exact Photo Service purchased a new color printer at the beginning of Year 1 for $42,400. The printer is expectedto have a four-year useful life and a $4,240 salvage value. The expected print production is estimated at1,500,000 pages. Actual print production for the four years was as follows:Year 1Year 2Year 3Year 4545,300477,000375,600389,500Total1,787,400The printer was sold at the end of Year 4 for $4,490.Requireda. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.b. Compute the depreciation expense for each of the four years, using units-of-production depreciation.c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods. Required ARequired BRequired CCompute the depreciation expense for each of the four years, usirthree decimal places. Round other intermediate calculations andUnits-of-ProductionYear 1Year 2Year 3Year 4

Depreciation rate as per DOuble declining balance method = rate of depreciation as per Straight line…

Answered: Exact Photo Service purchased a new…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 7PA: Using the following information: A. make the December 31 adjusting journal entry for depreciation B....

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Using the following information: A. make the December 31 adjusting journal entry for depreciation B. determine the net book value (NBV) of the asset on December 31 Cost of asset, $250,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $25,000
Adjustment for depreciation The estimated amount of depredation on equipment for the current year is $133,000. a. How is the adjustment recorded? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b. If the adjustment in (a) was omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?
A) using the depreciation method units of productipn determine the allowable depreciation for each of the 7 years B) using the MACRS depreciation determine the allowable annual depreciation for each year, assuming the half year convention, ie depreciation over 8 years
1. Determine the annual depreciation expense for each of the estimated 5 years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. a. Straight-line method Additional Instruction Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 2 3 4 5 b. Double-declining-balance method Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 2 3 4 5 New lithographic equipment, acquired at a cost of $859,200 on March 1 at the beginning of a fiscal year, has an estimated useful life of 5 years and an estimated residual value of $96,660. The manager requested…
A. Make the December 31 adjusting journal entry for depreciation.B. Determine the net book value (NBV) of the asset on December 31.• Cost of asset, $195,000• Accumulated depreciation, beginning of year, $26,000• Current year depreciation, $13,000
ALL 3 and last part posted in writing ! Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double-declining-balance. DDB Depreciation for the Period End of Period Year Beginning of Period Book Value Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value Year 1 % $0 Year 2 % 0 Year 3 % 0 Year 4 % 0 Total $0
A company, which makes up its financial statements annually to 31 December,provides for depreciation of its machinery at the rate of 10 per cent per annum on thediminishing balance method. On 31 December 19X6, the machinery consisted ofthree items purchased as under:1. On 1 January 19X4 Machine A Cost N$3 0002. On 1 April 19X5 Machine B Cost N$2 0003. On 1 July 19X6 Machine C Cost N$1 000
Question Content Area The net income reported on the income statement for the current year was $58,000. Depreciation recorded on fixed assets for the year was $24,000. In addition, equipment with an original cost of $130,000 and accumulated depreciation of $115,000 on the date of the sale was sold for $20,000. Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: End Beginning Cash $65,000 $70,000 Accounts Receivable (net) 70,000 63,000 Inventories 85,000 102,000 Prepaid Expenses 4,000 4,500 Accounts Payable (merchandise creditors) 50,000 58,000 Cash Dividends Payable 4,500 6,500 Salaries Payable 6,000 7,500 Prepare the operating activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Given this data:B = ₱120,265.00S = ₱19,190.00n = 12 yearsWhat is the SYD depreciation charge D9 during the that year?Answer round off to two decimal places.
1. The net income reported on the income statement for the current year was $310,000.Depreciation recorded on fixed assets and amortization of patents for the year were$40,000 and $9,000, respectively. Balances of current asset and current liabilityaccounts at the end and at the beginning of the year are as follows:End BeginningCash $50,000 $60,000Accounts receivable 112,000 108,000Inventories 105,000 93,000Prepaid expenses 4,500 6,500Accounts payable (merchandise creditors) 75,000 89,000What is the amount of cash flows from operating activities reported on the statement of cashflows prepared by the indirect method?a. $233,000b. $289,000c. $387,000d. $331,000
Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $426,700 and the balance in Accumulated Depreciation—Trucks is $132,940. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $77,000 $11,550 200,000 miles — 30,000 miles 2 117,200 14,064 370,000 $23,440 37,000 3 105,000 14,700 202,000 84,000 20,200 4 127,500 15,300 240,000 25,500 28,800 Question Content Area a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Truck No. Rate per…
if an entity employs the sum-of-the-years digits (Syd) method of depreciation for an asset with an estimated useful life of 4 years the percentage of the total depreciable cost that will be expensed in the third year is : a- 0.10 b- 0.25 c- 0.20 d- 0.70

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