On December 31, 2017, Swifty Inc. has a machine with a book value of $1,015,200. The original cost and related accumulated depreciation at this date are as follows. Machine   $1,404,000 Less: Accumulated depreciation   388,800 Book value   $1,015,200 Depreciation is computed at $64,800 per year on a straight-line basis.Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.           A fire completely destroys the machine on August 31, 2018. An insurance settlement of $464,400 was received for this casualty. Assume the settlement was received immediately. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit August 31, 2018                 (To record current depreciation.)     August 31, 2018                                 (To record loss of the machine.)         SHOW LIST OF ACCOUNTS LINK TO TEXT

Q: What is the accumulated depreciation as of December 31, 2017?

A: The Double declining balance is one of the two accelerated depreciation methods, and it uses a…

Q: On January 13, 2013, Dillo Company purchased a drilling truck for $45,000. Dillo expects the truck…

A: There are different methods are available to compute depreciation expense, like straight-line method…

Q: The Collins Corporation purchased office equipment at the beginning of 2014 and capitalized a cost…

A: 1.

Q: On January 1, 2016, the Allegheny Corporation purchased machinery for $115,000. The estimated…

A: Calculate the depreciation using straight line method.

Q: On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $312,000. The machine is expected…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Which depreciation method is the company using in each example?

A:

Q: The Jefferson Co. purchased a machine on January 1, 2016. The machine cost $595,000. It had an…

A: Solution: Introduction: The Jefferson Co. purchased a machine on January 1, 2016. The machine cost…

Q: Swindall Industries uses straight-line depreciation on all of its depreciable assets. The company…

A: Annual Depreciation =  ( cost of Asset - Salvage Value )  / useful life of the asset.

Q: As of Dec. 31, 2020, Leonard Co. had machinery recorded in its books in the total amount of…

A: The depreciation expense is charged on fixed assets as reduction in value of fixed assets with…

Q: On April 1, 2013, Parks Co. purchased machinery at a cost of $42,000. The machinery is expected to…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: A company had purchased a machinery for $1,000,000 in 2014. The accumulated depreciation to date is…

A: Impairment of assets is a situation when there is a difference between carrying value of asset and…

Q: Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $800,000. The…

A: The double-declining balance method refers to the accelerated depreciation which is compared to the…

Q: Poe Company disclosed that the depreciation policy on machinery is as follows:…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Collins Corporation purchased office equipment at the beginning of 2014 and capitalized a cost of…

A: Requirement – 1 Prepare the appropriate correcting entry for the equipment capitalization error…

Q: Cullumber Company purchased a new machine on October 1, 2017, at a cost of $89,200. The company…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: On October 1, 2017, Holt Company places a new asset into service. The cost of the asset is $120,000…

A: I'm answering the 4th part as required by the student. 4. Depreciation represents the reduction from…

Q: Presented below is information related to equipment owned by Pujols Company at December 31, 2017.…

A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, Recoverable…

Q: Steele Company purchased on January 1, 2017, a new machine for $2,100,000. The new machine has an…

A: Sum of the year’s digits method: this method determines the depreciation expense by multiplying the…

Q: On January 1, 2014, McMahan Company purchased equipment at a cost of $420,000. The equipment was…

A: Solution: Depreciable cost of equipment = Cost - Salvage value = $420,000 - $60,000 = $360,000…

Q: Novak Corporation purchased machinery on January 1, 2017, at a cost of $270,000. The estimated…

A: Step 1 The depreciable cost of $246,000 is obtained by subtracting the salvage value of $24,000…

Q: On December 31, 2020, Flounder Inc. has a machine with a book value of $1,071,600. The original cost…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: In January 2015, Genesis Company purchased equipment at a cost of P 5,000,000. The equipment had an…

A: Business has to use several tangible fixed assets to carry out their operations. These assets are…

Q: On January 1, 2016, Wasson Company purchased a delivery truck costing $40,000. The truck has an…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: (Entries for Disposition of Assets) On December 31, 2017, Travis Tritt Inc. has a machine with a…

A: Workings:   A ) Calculation of depreciation as on August 31, 2018 January to August  = 8 months…

Q: On April 1, 2014, the KB Toy Company purchased equipment to be used in its manufacturing process.…

A: 1.

Q: On January 1, 2015, Mena Co. purchased a new machine for $2,000,000. The machine has an estimated…

A: solution given Cost of the asset $2,000,000 Useful life 5 years Salvage value…

Q: On January 1, 2015, Mogul company acquired equipment to be used in the manufacturing operations.…

A: Given that, The residual value of equipment = 50000 The estimated useful life of equipment = 10…

Q: Monte's Coffee Company purchased packaging equipment on January 5, 2014, for $90,000. The equipment…

A: Depreciation Formulas: Depreciable Cost = Original Cost - Residual Value Straightline Depreciation…

Q: On December 31, 2020, Riverbed Inc. has a machine with a bookvalue of $ 1,410,000. The original cost…

A: Depreciation on August 31, 2021 = Annual depreciation x no. of months/12 = $90000*8/12 = $60000

Q: Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $155,000. The…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Waldum Company purchased packaging equipment on January 2014, for RM135,000. The equipmet is…

A: ) Depreciation Expenses: Years Straight Line Units of Output Double Decline Formula…

Q: Xanadu Company purchased a new machine on October 1, 2014, at a cost of Tk.96,000. The company…

A: Given the following information: Xanadu Company purchased a new machine on October 1, 2014, at a…

Q: Silverman Company purchased machinery for $162,000 on January 1, 2017. It is estimated that the…

A:

Q: On December 31, 2020, Riverbed Inc. has a machine with a book value of $1,410,000. The original cost…

A: Solution: Depreciation in 2021 upto April 1, 2021 = $90,000*3/12 = $22,500 Book value of machine on…

Q: At September 1, 2013, the following existed in the records of Lauren Company:   Fixed assets…

A: The net value of assets is the value of assets after depreciation. The net value of assets sold is…

Q: Crane Ltd. purchased equipment on January 1, 2015 at a cost of $171,380. The equipment has an…

A: Depreciation is the decline in the value of an asset due to factors such as usage, wear and tear and…

Q: On January 1, 2017, Bushong Company purchased equipment at a cost of $12,600. The equipment had an…

A: Depreciable cost = $12,600 - $1,200 = $11,400

Q: Anna Company purchased an equipment costing P100,000 on July 1, 2016. The equipment has an estimated…

A: Depreciation expense is part of cost of the asset charged as expense in the income statement.…

Q: On April 1, 2017, Mills Company acquired equipment for $125,000. The estimated useful life is six…

A: 1. Under straight line method, depreciation is computed by the following formulaDepreciation under…

Q: Presented below is information related to equipment owned by Blossom Company at December 31, 2017.…

A: Fair value $2,688,000   Life / 4   Depreciation Expenses $672,000

Q: On December 31, 2020, Tritt Inc. has a machine with a book value of $940,000. The original cost and…

A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…

Q: During 2015, XYZ Enterprises sold a piece of machinery, which originally cost $40,000, for $12,000.…

A: Depreciation expense is the expense recognized in the income statement representing the portion of…

Q: Presented below is information related to equipment owned by Monty Company at December 31, 2017.…

A: Impairment of Assets:Impairment of an asset refers to sudden decrease of the present value of…

Q: On January 2, 2010, Sayre Company purchased a machine for $45,000. The machine has a five-year…

A: Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its…

Q: On April 1, 2016, the KB Toy Company purchased equipment to be used in its manufacturing process.…

A: Straight line depreciation: ( Cost of asset - residual value ) / useful life years.

Q: On January 1, 2017, Mogul company acquired equipment to be used in the manufacturing operations. The…

A: Sum of 5 years = 1+2+3+4+5 = 15 years Sum of 3 years i.e 2017 to 2019 = 5+4+3 = 12

Q: On August 31, 2017, Advanced Automotive purchased a copy machine for $62,500. Advanced Automotive…

A: Following is the answer to the given question

Q: Burrell Company purchased a machine for $33,000 on January 2, 2016. The machine has an estimated…

A: Straight Line Method: Depreciation per year=(Cost-Residual value)Useful Life=($33,000-$0)5…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.