Problem 1. a. Grapicsco Co. acquired a 3-D printer for $20,000 on January 2013. The printer hadan estimated economic life of 4 years and a residual value of $1,000. It was depreciated using thedouble declining balance method. In January of 2014 Grapicsco Co. sold the printer for$8,000 cash, after just 1 year of use, and replaced it with a more sophisticated printer.Required:Prepare all necessary journal entries to record the disposal of the printer on December 31 2013.Problem 1.b The balance sheets of Wilcox Corporation at the beginning and end of the yearcontained the following data:Wilcox CorporationPartial Balance SheetProperty, Plant, and Equipment - PP&E (at cost)..Accumulated Depreciation...Net Carrying ValueBeg. Of Year End of Year$400,000180,000$220,000$550,000160,000$390,000During the year, Wilcox Corporation purchased additional PP&E for $230,000, recorded totalPP&E depreciation of $50,000 for the year and sold an old equipment it no longer needed for anet gain of $4,000.Required:Prepare the necessary journal entries to record the sale of the old machinery.

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Description: Problem 1. a. Grapicsco Co. acquired a 3-D printer for $20,000 on January 2013. The printer hadan estimated economic life of 4 years and a residual value of $1,000. It was depreciated using thedouble declining balance method. In January of 2014 Grap

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Problem 1. a. Grapicsco Co. acquired a 3-D printer for $20,000 on January 2013. The printer had an estimated economic life of 4 years and a residual value of $1,000. It was depreciated using the double declining balance method. In January of 2014 Grapicsco Co. sold the printer for $8,000 cash, after just 1 year of use, and replaced it with a more sophisticated printer. Required: Prepare all necessary journal entries to record the disposal of the printer on December 31 2013.

Problem 1. a. Grapicsco Co. acquired a 3-D printer for $20,000 on January 2013. The printer had an estimated economic life of 4 years and a residual value of $1,000. It was depreciated using the double declining balance method. In January of 2014 Grapicsco Co. sold the printer for $8,000 cash, after just 1 year of use, and replaced it with a more sophisticated printer. Required: Prepare all necessary journal entries to record the disposal of the printer on December 31 2013.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.5E: Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for...

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