Peter M. Dell Co. purchased equipment for $510,000 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2021, it is determined that the total estimated life should be 15 years with a salvage value of $5,000 at the end of that time.
Instructions
a. Prepare the entry (if any) to correct the prior years' depreciation.
b. Prepare the entry to record depreciation for 2021.
Want to see the full answer?
Check out a sample Q&A here
Related Accounting Q&A
Find answers to questions asked by students like you.
Q: Wildhorse Co. purchased equipment for $418,800 which was estimated to have a useful life of 10 years…
A: Annual Depreciation = (Cost of the assets - residual value) / life of the assets =…
Q: Sunland Co. purchased equipment for $587,000 which was estimated to have a useful life of 10 years…
A: The depreciation is charged on fixed assets as reduced value of the fixed asset with the passage of…
Q: Wildhorse Co. purchased equipment for $418,800 which was estimated to have a useful life of 10 years…
A: Annual Depreciation = (Cost of the assets - residual value) / life of the assets =…
Q: Obaid Co. purchased equipment for $1,000,000 which was estimated to have a useful life of 15 years…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: Judds Company purchased a new plant asset on April 1, 2020, at a cost of $711,000. It was estimated…
A: Solution a. Sum of the years digits method: This is method is in line with diminishing balance…
Q: Majaan International, purchased equipment for $500,000 which was estimated to have a useful life of…
A: Calculation of depreciation using Straight line method To calculate the depreciation which know the…
Q: A company purchased machinery for $10,800,000 on January 1, 2019. The machinery has a useful life of…
A: Answer Sheet: Formula Sheet:
Q: Majaan International, purchased equipment for $500,000 which was estimated to have a useful life of…
A: Depreciation is an expense which is recorded on the income statement of the firm. The depreciation…
Q: UMET Co. purchased equipment on January 1, 2020, at a cost of $600,000. The equipment is expected to…
A: Hi student Since there are multiple subparts,we will answer only first three subparts.…
Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $75,900. The…
A: Depreciation refers to an accounting method used to allocate the cost of an asset over its expected…
Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $75,900. The…
A: Cost of equipment $72,000 Expected useful life 6 residual value $15,000 fair value…
Q: A Company purchased equipment on January 1, 2019 for AED 70,000. It is estimated that the equipment…
A: Depreciation is an expense for consuming the fixed assets of the entity. The depreciation method…
Q: UMET Co. purchased equipment on January 1, 2020, at a cost of $600,000. The equipment is expected to…
A: The sum-of-the-years digits method is a quick way to figure out how much an asset would depreciate…
Q: Parnell Company acquired construction equipment on January 1, 2020, at a cost of $77,400. The…
A: Given information:
Q: Bonita Company purchased a new plant asset on April 1, 2020, at a cost of $738,000. It was estimated…
A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/20 years) x 2 = 10%…
Q: Sunland Company purchased a new plant asset on April 1, 2020, at a cost of $750,000. It was…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: On May 1, 2019 equipment worth $40,000 was purchased with cash. Assuming straight-line method of…
A: Depreciation refers to reduction in value of an asset over a period of time due to usage of asset in…
Q: On April 21, 2018, OO YAN! Manufacturing Company bought new equipment for P725, 000. The new…
A: Under the sum of year digits method, depreciation is highest in the initial periods and lower in the…
Q: PIKACHU purchased an equipment for 540,000 on January 1, 2020. The equipment has an estimated…
A: The calculation of depreciable cost has been made as follows: Depreciable cost=Purchase…
Q: Bautista Organizers purchased an equipment costing P50,000 on July 1, 2018. The equipment has an…
A: Accumulated depreciation refers to the total deprecation charges till a particular point. This can…
Q: On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to…
A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($100000 - 10000)…
Q: Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The…
A: given that, cost of purchase of equipment on 1 Jan 2019 =$800000 life of machinery = 10 Years…
Q: Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The…
A: Depreciation is considered a reduction in the value of asset due to uses of that asset. We can…
Q: An equipment was acquired for P3,000,000 on Jan. 1, 2018. It is being depreciated to a salvage value…
A: Journal entry: An act of recording the daily transaction of a firm in the journal is called journal…
Q: A company purchased a truck for $35,000 on January 1, 2019. The truck is estimated to have a useful…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2020. It is estimated that the…
A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…
Q: A plant asset was purchased on May 1, 2021. The asset had a cost of $54,000, a salvage value of…
A: Formula: Straight line method = ( Cost of Asset - Salvage value ) / Useful life
Q: Blue Company purchases equipment on January 1, Year 1, at a cost of $600,000. The asset is expected…
A: Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8+9+10+11+12 = 78
Q: Metlock Company purchased a new plant asset on April 1, 2020, at a cost of $741,000. It was…
A: An organization or a company has different methods which are available to calculate the depreciation…
Q: PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated…
A: Sum of year digit method is a depreciation method where the depreciation for the year is calculated…
Q: PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated…
A: Depreciable cost = P540,000 - P60,000 = P480,000 Useful life = 5 years Sum of years of useful life =…
Q: PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated…
A: Solution: sum of years digits = 5+4+3+2+1 = 15 Depreciation expense for Year 2020 = (Cost -…
Q: PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated…
A: Sum of years' digits of useful life = 1+2+3+4+5 = 15 Depreciation fraction of 2020 = 5/15…
Q: Colvin Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The…
A: Calculate the year 1 depreciation for 3 months as follows: Year 1 depreciation = 2*(Book value of…
Q: Cox Inc. acquired a machine for $410,000 on January 1, Year 1. The machine has a salvage value of…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: On January 1, 2019, the Ramirez Company ledger shows Equipment $29,000 and Accumulated Depreciation…
A: Straight-line depreciation method: The depreciation method which assumes that the consumption of…
Q: On January 1, 2019, the Ramirez Company ledger shows Equipment $29,000 and Accumulated Depreciation…
A: Given information on 1-1-2019 Ramirez company ledger Shows equipment cost $29000 on 1-1-2019…
Q: At the beginning of the fiscal year, G&J Company acquired new equipmentat a cost of $100,000.…
A: Click to see the answer
Q: At the beginning of the fiscal year, G&J Company acquired new equipmentat a cost of $100,000.…
A: Click to see the answer
Q: Waterway Industries purchased machinery on January 2, 2015, for $860000. The straight-line method is…
A: Determine the book value at the end of 2020.
Q: Coronado Industries purchased a machine on July 1, 2020, for $960000. The machine has an estimated…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: Crane Company purchased a new machine on October 1, 2022, at a cost of $80,500. The company…
A: Click to see the answer
Q: Beckman enterprises purchase a depreciable asset on Oct1, year1 at a cost of 132,000. the asset is…
A: The depreciation expense is incurred on fixed assets as reduction in the value of fixed assets with…
Q: Sanders LLC purchased new packaging equipment with an estimated useful life of five years. The cost…
A: Straight Line Method: It is a method of calculating depreciation , amortisation on asset over a…
Q: Sanders LLC purchased new packaging equipment with an estimated useful life of five years. The cost…
A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…
Q: Sanders LLC purchased new packaging equipment with an estimated useful life of five years. The cost…
A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…
Q: Ayayai Corporation purchased machinery on January 1, 2022, at a cost of $252,000. The estimated…
A: Fixed asset: It is a long-term asset used in the business for long period and is depreciated for its…
Q: On July 1, 2019, Ivanhoe Company purchased new equipment for $90,000. Its estimated useful life was…
A: SOLUTION- COMPUTE DEPRECIATION=COST - SALVAGE VALUE / ESTIMATED LIFE…
Q: On 1st January 2018, A heavy equipment trailer is bought by ABC Company at a cost of RO75,000. The…
A: The depreciation expense is the decrease in Value of fixed assets with the passage of time.
