Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $96,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL Date of Purchase Apr. 9/12 Apr. 9/12 Est. Cost Residual $6,000 -0- Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. $31,500 65,000 $96,500 Est. Life 15 yr 10 yr On June 27, 2020, $71,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $5,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value.

Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $96,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL Date of Purchase Apr. 9/12 Apr. 9/12 Est. Cost Residual $6,000 -0- Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. $31,500 65,000 $96,500 Est. Life 15 yr 10 yr On June 27, 2020, $71,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $5,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9EA: Santa Rosa recently purchased a new boat to help ship product overseas. The following information is...

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Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $116,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL Date of Purchase Apr. 9/12 Apr. 9/12 Cost $ 43,500 73,000 $116,500 Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. Est. Residual $9,000 -0- Est. Life 15 yr 10 yr On June 27, 2020, $79,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $4,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value.
Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: • Purchase price $4,500,000 • Cost to bring boat to production facility $25,000 • Yearly insurance cost $25,000 Annual maintenance cost of $37,000 • Received 8% discount on sales price A. Determine the acquisition cost of the boat. B. Record the journal entry needed. If an amount box does not require an entry, leave it blank. 10
willow Creek Company purchased and installed carpet in its new gereral offces on Juiy 30 for a total cost of s5,s28. The carpet is estimated to have a 8-year useful life and no residual value. a. Prepare the journal entry necessary for recording the purchase of the new carpet. Julv 30 Carpet v 6.521 Cash 6.520 Feedhack Cheok My uk Is this purchase improving or extending the life of the asset? Or is this purchase something that will only benefit this period? b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that willon Creek uses the straight-line method. Do not round intermediate calculations.
Funseth Farms Inc. purchased a tractor in 2018 at a cost of $34,800. The tractor was sold for $3,400 in 2021. Depreciation recorded through the disposal date totaled $30,000. (1) Prepare the journal entry to record the sale. (2) Now assume the tractor was sold for $11,200; prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the sale of the tractor for $3,400. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal >
On January 1, 2020, Techno Company sold a machine for RO15,000 cash. The Machine originally cost RO 56,000. As of January 1, 2020, it had accumulated depreciation of RO 35,000. Prepare the journal entry to record the sales of the Machine Select one: О. 15,000 35,000 Cash Accumulated Depreciation Loss on disposal of Machine Machine 6,000 56,000 O b. Accumulated Depreciation 35,000 Equipment 35,000 O c. Truck 56,000 直。 كتب هنا ل لبحث
Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: Purchase price $4,500,000 Cost to bring boat to production facility $25,000 Yearly insurance cost $25,000 Annual maintenance cost of $30,000 Received 8% discount on sales price Determine the acquisition cost of the boat, and record the journal entry needed.
Crane Company had the following assets on January 1, 2022. Item Machinery Forklift Truck Cost $82,000 Date 41,000 47,400 Purchase Date Jan. 1, 2012 Jan. 1, 2019 Jan. 1, 2017 Useful Life (in years) 10 5 8 Salvage Value $0 0 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $13,100. The truck was discarded on December 31. Account Titles and Explanation 3,000 Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit
On January 1, 2020, Flounder Inc. sold computer equipment to Shamrock Co. The sales price of the equipment was $515,000 and its carrying amount is $398,000. Record any journal entries necessary for Flounder from the sale of the computer equipment in 2020. 1/1/20 Cash 515000 Equipment 398000 Gain on Disposal of Equip 117000 Use the information from part a. Assume that, on the same day the sale occurred, Flounder enters into an agreement to lease the equipment from Shamrock for 10 years with annual lease payments of $66,694.90 at the end of each year, beginning on December 31, 2020. If Flounder has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Flounder from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2…
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Funseth Farms Inc. purchased a tractor in 2013 at a cost of $30,000. The tractor was sold for $3,000 in 2016. Depreciation recorded through the disposal date totaled $26,000. Required: 1. Prepare the journal entry to record the sale. 2. Assuming that the tractor was sold for $10,000, prepare the journal entry to record the sale.
On 1 May 2020, Ron Trading purchased a new machine. The following paymentsrelate to the machine.List price $21,500Purchase discount $2,000Transportation cost $300Repair of damage parts incurred in transporting the machine $1,000Fees paid to test the machine before use $500Fees paid to the installer to install the machine $800Machine operator’s salary for the first month of operation $3,000Maintenance costs for the first month of operation $300(i) Identify and compute the cost of the machine to be recognised. Explainyour reasoning.(ii) Journalise the transactions. Assume the above payments are paid in cash.
Current Attempt in Progress Your answer is partially correct. Pharoah Company owns equipment that cost $72,800 when purchased on January 1, 2022. It has been depreciated using the straight- line method based on an estimated salvage value of $5,600 and an estimated useful life of 5 years. Prepare Pharoah Company's journal entries to record the sale of the equipment in these four independent situations. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Sold for $34,720 on January 1, 2025. (b) Sold for $34,720 on May 1, 2025. (c) Sold for $12,320 on January 1, 2025. (d) Sold for $12,320 on October 1, 2025. No. Account Titles and Explanation (a) Cash Debit 34720 Credit