kk.Subject :- Accounting In recent years. Windsor Company has purchased three machines. Because of frequent employee turnover in the accountingdepartment, a different accountant was in charge of selecting the depreciation method for each machine, and various methods havebeen used. Information concerning the machines is summarized in the table below.Machine12(a1)3AcquiredJan. 1, 2020July 1, 2021Nov. 1, 2021Cost$ 96,40088,50070,000Your answer is correct.Depreciable costSalvageValue$ 14,00011,500$8,000Useful Life(in years)8For the declining-balance method, Windsor Company uses the double-declining rate. For the units-of-activity method, total machinehours are expected to be 31,000. Actual hours of use in the first 3 years were 2021, 500; 2022,4,600; and 2023, 6,600.256For Machine #3, calculate depreciable cost per hour under units-of-activity method.DepreciationMethodStraight-lineDeclining-balanceUnits-of-activityper hour (b)Your answer is correct.Compute the amount of accumulated depreciation on each machine at December 31, 2023.MACHINE 1Accumulated depreciation$MACHINE 2 $MACHINE 3 $eTextbook and Media41200Depreciation expense63012123400If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2021? In2022?(1)2021Attempts: 1 of 3 used(2)2022

Name: kk.Subject :- Accounting In recent years. Windsor Company has purchase
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Description: kk.Subject :- Accounting In recent years. Windsor Company has purchased three machines. Because of frequent employee turnover in the accountingdepartment, a different accountant was in charge of selecting the depreciation method for each machine, and

Depreciation is an expense which is charged for the wear and tear of the assets. These assets are…

Business

Accounting

In recent years, Windsor Company has purchased three machines. Because of frequent empl department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods haw been used. Information concerning the machines is summarized in the table below. Machine 1 2 (a1) 3 Acquired Jan. 1, 2020 July 1, 2021 Nov. 1, 2021 Cost $ 96,400 88,500 70,000 Your answer is correct. Salvage Value $ 14,000 Depreciable cost 11,500 8,000 Useful Life (in years) 8 5 For the declining-balance method, Windsor Company uses the double-declining rate. For the units-of-activity method, total machi hours are expected to be 31,000. Actual hours of use in the first 3 years were 2021, 500; 2022, 4,600; and 2023, 6,600. 2 6 Depreciation Method For Machine #3, calculate depreciable cost per hour under units-of-activity method. Straight-line Declining-balance Units-of-activity per hour

In recent years, Windsor Company has purchased three machines. Because of frequent empl department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods haw been used. Information concerning the machines is summarized in the table below. Machine 1 2 (a1) 3 Acquired Jan. 1, 2020 July 1, 2021 Nov. 1, 2021 Cost $ 96,400 88,500 70,000 Your answer is correct. Salvage Value $ 14,000 Depreciable cost 11,500 8,000 Useful Life (in years) 8 5 For the declining-balance method, Windsor Company uses the double-declining rate. For the units-of-activity method, total machi hours are expected to be 31,000. Actual hours of use in the first 3 years were 2021, 500; 2022, 4,600; and 2023, 6,600. 2 6 Depreciation Method For Machine #3, calculate depreciable cost per hour under units-of-activity method. Straight-line Declining-balance Units-of-activity per hour

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1CP

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The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was 100,000. No residual value is expected, the remaining estimated life is 10 years, and straight-line depreciation is used. b. All purchases of materials for construction contracts still in progress have been immediately expensed. It is discovered that the use of these materials was 10,000 during 2018 and 12,000 during 2019. c. Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, 40,000 of depreciation was accounted for in that manner. Production was 15,000 units during 2019, of which 3,000 remained in inventory at the end of the year. Assume there was no inventory at the beginning of 2019. Required: Prepare journal entries for the preceding errors discovered during 2020. Ignore income taxes.
Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year). A. A business depreciates a building with a book value of $12,000, using straight-line depreciation, no salvage value, and a remaining useful life of six years. B. An organization has a line of credit with a supplier. The company purchases $35,500 worth of inventory on credit. Terms of purchase are 3/20, n/60. C. An employee earns $1,000 in pay and the employer withholds $46 for federal income tax. D. A customer pays $4,000 in advance for legal services. The lawyer has previously recognized 30% of the services as revenue. The remainder is outstanding.
When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
Birmingham Company has been in business for five years. Last year, it experienced rapid growth and hired a new accountant to oversee the physical assets and record acquisitions and depreciation. This year, the controller discovered that the accounting records were not in order when the new accountant took over, and a $3,000 depreciation entry was omitted resulting in depreciation expense being understated last year. How does the company make this type of correction and where is it reported?
Which of the following is not true about the MACRS depreciation system: A salvage value must be determined before depreciation percentages are applied to depreciable real estate. Residential rental buildings are depreciated over 27.5 years straight-line. Commercial real estate buildings are depreciated over 39 years straight-line. No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid-month for MACRS depreciation purposes.