QUESTION 5As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc. sold shelving units (recorded asEquipment) that were 10 years old for $1,110 cash. The shelves originally cost $2,377 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $861.When recording the sale, the change to stockholders' equity will be $decrease. Example increase of 41,000, enter as 1,000, decrease of $1,00 enter as -1,000.(leave as a positive for increase, enter as -for a

Gain/ loss on sale of assets impacts the stockholders equity. Therefore, in the immediate case, it…

Answered: QUESTION 5 As part of a major…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter9: Long-term Assets: Fixed And Intangible

Section: Chapter Questions

Problem 9.5APR

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Accounting Question: 1. On April 22, 2023, a company purchased equipment for $129,200. The company expects to use the equipment for 12,000 working hours during its four-year life and that it will have a residual value of $14,000. The company has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,900 hours in 2023; 2,800 hours in 2024; 3,700 hours in 2025; 2,700 hours in 2026; and 1,100 hours in 2027. a) Prepare a depreciation schedule for the life of the asset under each of the following methods: 1. Straight-Line 2. Double diminishing-balance assuming a rate of 50% 3. Units-of-production b) Which method results in the lowest profit over the life of the asset? c) Which method results in the least cash used for depreciation over the life of the asset? Calculate partial-year depreciation using different methods. Please show all steps, thank you.
Office equipment purchased 5 1/2 years ago for $70,000, with an estimated life of 10 years and no residual value is sold for $20,000 cash. Journalize the following entries: (a) Record the depreciation for the one-half year prior to the sale, using the straight-line method. (b) Record the sale of the equipment. Date Account Title Debit Credit A B
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Dd6). Required information Skip to question [The following information applies to the questions displayed below.] On January 1, Super Saver Groceries purchased store equipment for $29,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $3,500. During the 10-year period, the company expects to use the equipment for a total of 13,000 hours. Super Saver used the equipment for 1,700 hours the first year. Required:
Assignment # 4 : Equipment costing $76,000 was purchased by Spence, Inc., at the beginning of the current year. The company will depreciate the equipment by the declining-balance method, but it has not determined whether the rate will be at 150 percent or 200 percent of the straight-line rate. The estimated useful life of the equipment is eight years. Prepare a comparison of the two alternative rates for management for the first two years Spence owns the equipment.
Question 1. Daltry Company has a December 31 year-end. Part a) Daltry purchased the following assets on January 1, Year 1: Purchased equipment for $84,000. This equipment is expected to be in service for 5 years, and the residual value of $24,000. Daltry will depreciate this equipment using the double declining balance method. Purchased a building for $460,000. It will be depreciated over 20 years using the straight-line method and have a residual value of $160,000. Purchased an ocean-going tugboat for $850,000. It is expected to provide 100,000 hours of service over its useful life and have a residual value of $120,000. It will be depreciated using the units of production method. In Year 1 it was used for 4,380 hours. Instructions: Prepare the three December 31 adjusting journal entries for these assets. Part b) Partial year depreciation: For partial year depreciation, Daltry rounds to the nearest month, except for items using units of production. Assume that instead of…
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Brief Exercise 9-08 Pharoah Company sells office equipment on July 31, 2022, for $23,160 cash. The office equipment originally cost $78,110 and as of January 1, 2022, had accumulated depreciation of $38,300. Depreciation for the first 7 months of 2022 is $3,500.Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (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.) No. Account Titles and Explanation Debit Credit (a) Enter an account title to update depreciation to July 31 Enter a debit amount Enter a credit amount enter an account title to update depreciation to July 31 Enter a debit amount Enter a credit amount (b) Enter an account title to record the sale of the equipment Enter a debit amount Enter a…

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