FUND.ACCT.PRIN -ONLINE ONLY >I<
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ISBN: 9780077632878
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Chapter 10, Problem 8E
Exercise 10-8
Double-declining-balance
In early January 2015, NewTeeh purchases computer equipment for $154.000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $25,000. Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation,
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Exercise 8-4: Koffman’s Warehouse purchased a forklift on January 1, 2016, for $6,000. The forklift is expected to last for five years and has a residual value of $600. Koffman’s uses the double-declining-balance method for depreciation.
Calculate the depreciation expense, accumulated depreciation, and book value for each year of the forklifts life.
Prepare the journal entry to record depreciation expense for 2016.
What factors may have influenced Koffman to use the double-declining-balance method?
Exercise 11-11
Machinery purchased for $69,600 by Novak Co. in 2013 was originally estimated to have a life of 8 years with a salvage value of $4,640 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2018, it is determined that the total estimated life should be 10 years with a salvage value of $5,220 at the end of that time. Assume straight-line depreciation.
Prepare the entry to correct the prior year's depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Show List of Accounts
Link to Text
Link to Text
Prepare the entry to record depreciation for 2018. (If…
Brief Exercise 9-08
Blossom Company sells office equipment on July 31, 2022, for $23,050 cash. The office equipment originally cost
$85,450 and as of January 1, 2022, had accumulated depreciation of $39,450. Depreciation for the first 7 months of
2022 is $4,410.
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)
(b)
Click if you would like to Show Wor
Chapter 10 Solutions
FUND.ACCT.PRIN -ONLINE ONLY >I<
Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - Prob. 11DQCh. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - Prob. 14DQCh. 10 - Prob. 15DQCh. 10 - Prob. 16DQCh. 10 - Prob. 17DQCh. 10 - Prob. 18DQCh. 10 - Prob. 19DQCh. 10 - Prob. 20DQCh. 10 - Prob. 21DQCh. 10 - Prob. 1QSCh. 10 - Prob. 2QSCh. 10 - On January 2,2015. the Matthews Band acquires...Ch. 10 - Units-of-production On January 2,2015. the...Ch. 10 - Prob. 5QSCh. 10 - Prob. 6QSCh. 10 - Prob. 7QSCh. 10 - Prob. 8QSCh. 10 - Prob. 9QSCh. 10 - Prob. 10QSCh. 10 - Prob. 11QSCh. 10 - Prob. 12QSCh. 10 - Prob. 13QSCh. 10 - Prob. 14QSCh. 10 - Prob. 15QSCh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Exercise 10-5 Units-of-production depreciation P1...Ch. 10 - Exercise 10-6 Double-declining-balance...Ch. 10 - Prob. 7ECh. 10 - Exercise 10-8 Double-declining-balance...Ch. 10 - Prob. 9ECh. 10 - Exercise 10-10 Double-declining-balance...Ch. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Prob. 21ECh. 10 - Prob. 22ECh. 10 - Prob. 23ECh. 10 - Prob. 24ECh. 10 - Prob. 25ECh. 10 - Prob. 1APSACh. 10 - Problem 1O-2A Depreciation methods P1 A machine...Ch. 10 - Prob. 3APSACh. 10 - Prob. 4APSACh. 10 - Prob. 5APSACh. 10 - Prob. 6APSACh. 10 - Problem 1O7A Natural resources P3 On July 23 of...Ch. 10 - Prob. 8APSACh. 10 - Prob. 1BPSBCh. 10 - Problem 10-28 Depreciation methods P1 On January...Ch. 10 - Prob. 3BPSBCh. 10 - Prob. 4BPSBCh. 10 - Prob. 5BPSBCh. 10 - Problem 1O-6B Disposal of plant assets C1 P1 P2 On...Ch. 10 - Problem 10-78 Natural resources P3 On February 19...Ch. 10 - Prob. 8BPSBCh. 10 - Prob. 10SPCh. 10 - Refer to the financial statements of Apple in...Ch. 10 - Prob. 2BTNCh. 10 - Prob. 3BTNCh. 10 - Prob. 4BTNCh. 10 - Prob. 5BTNCh. 10 - Each ream member is to become an expert on one...Ch. 10 - Prob. 7BTNCh. 10 - Prob. 8BTNCh. 10 - Prob. 9BTN
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- Exercise 11-05 Concord Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $129,600. The company estimated that the machine would have a salvage value of $12,600 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2020 (b) Activity method for 2020, assuming that machine usage was 800 hours (c) Sum-of-the-years'-digits for 2021 $ (d) Double-declining-balance for 2021 Click if you would like to Show Work for this question: Open Show Workarrow_forwardExercise 9-05 Sheridan Company purchased a new machine on October 1, 2022, at a cost of $66,840. The company estimated that the machine has a salvage value of $6,720. The machine is expected to be used for 70,100 working hours during its 6-year life.Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, e.g. 5,275.25.) 2022 2023 The depreciation expense under the straight-line method $Enter a dollar amount for year 2022 $Enter a dollar amount for year 2023arrow_forwardRequired information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $257,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $24,00O. Exercise 8-8 Double-declining-balance depreciation LO P1 Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. (Enter all amounts positive values.) Depreciation for the Period End of Periodarrow_forward
- 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…arrow_forwardBrief Exercise 11-1 Cullumber Corporation purchased a truck at the beginning of 2017 for $59,500. The truck is estimated to have a salvage value of $2,380 and a useful life of 190,400 miles. It was driven 27,370 miles in 2017 and 36,890 miles in 2018.Compute depreciation expense for 2017 and 2018. Depreciation expense for 2017 $ Depreciation expense for 2018 $arrow_forwardExercise 7-48Depreciation Methods Berkshire Corporation purchased a copying machine for $8,700 on January 1, 2019. The machine's residual value was $425 and its expected life was 5 years or 2,000,000 copies. Actual usage was 480,000 copies in the first year and 400,000 in the second year. Required: 1. Compute depreciation expense for 2019 and 2020 using the: a. Straight-line method. Depreciation expense $ per year b. Double-declining-balance method. Depreciation Expense 2019 $ 2020 $ c. Units-of-production method. (Do not round intermediate calculations.) Depreciation Expense 2019 $ 2020 $ 2. For each depreciation method, what is the book value of the machine at the end of 2019? At the end of 2020? 2019 2020 a. Straight-line method $ $ b. Double-declining-balance method $ $ c. Units-of-production method $ $arrow_forward
- Exercise 7-48Depreciation Methods Berkshire Corporation purchased a copying machine for $8,700 on January 1, 2019. The machine's residual value was $425 and its expected life was 5 years or 2,000,000 copies. Actual usage was 480,000 copies in the first year and 400,000 in the second year. Required: 1. Compute depreciation expense for 2019 and 2020 using the: a. Straight-line method. Depreciation expense $fill in the blank 1 per year b. Double-declining-balance method. Depreciation Expense 2019 $fill in the blank 2 2020 $fill in the blank 3 c. Units-of-production method. (Do not round intermediate calculations.) Depreciation Expense 2019 $fill in the blank 4 2020 $fill in the blank 5 2. For each depreciation method, what is the book value of the machine at the end of 2019? At the end of 2020? 2019 2020 a. Straight-line method $fill in the blank 6 $fill in the blank 7 b. Double-declining-balance method $fill in the blank 8 $fill in the blank 9 c.…arrow_forwardExercise 7-53 Revision of Depreciation On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was expected to have a residual value of $12,000 at the end of its 5-year useful life. On January 1, 2019, Blizzards- R-Us concluded that the machine would have a remaining useful life of 6 years with a residual value of $3,600. Required: Determine the revised annual depreciation expense for 2019 using the straight-line method.arrow_forwardExercise 9-5 Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit $ LINK TO TEXT Year Prepare a depreciation schedule assuming actual mileage was: 2017, 48,600; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) End of Year 2017 2018 2019 2020 Units of Activity per mile Computation Depreciation Cost/Unit $ VIDEO: APPLIED SKILLS Annual Depreciation Expense Accumulated Depreciation Book Valuearrow_forward
- Brief Exercise 11-3 Shamrock Company purchased machinery on January 1, 2017, for $96,000. The machinery is estimated to have a salvage value of $9,600 after a useful life of 8 years. Your answer is incorrect. Compute 2017 depreciation expense using the sum-of-the-years'-digits method. Depreciation expense $ SHOW SOLUTION LINK TO TEXT Your answer is incorrect. Compute 2017 depreciation expense using the sum-of-the-years'-digits method, assuming the machinery was purchased on April 1, 2017. (Round answer to 0 decimal places, e.g. 5,125.) Depreciation expense $arrow_forwardProblem 24-21 (ACP) ABC Company acquired an equipment on January 1, 2008. The asset has an estimated life of 4 years. An employee has prepared a depreciation schedule for this equipment using two methods, straight line and double declining balance, as follows: Straight line Double declining 2008 2009 2010 2011 1,500,000 1,500,000 1,500,000 1,500,000 6,000,000 What was the acquisition cost of the equipment? a. 6,000,000 b. 6,500,000 c. 8,125,000 d. 7,000,000 3,250,000 1,625,000 812,500 312,500 6,000,000arrow_forwardExercise 9-5 Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per units LINK TO TEXT Year 2017 Prepare a depreciation schedule assuming actual mileage was: 2017, 48,500; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) Computation End of Year 2018 2019 2020 per mile Units of Activity Depreciation Cost/Unit VIDEO: APPLIED SKILLS Annual Depreciation Expense Accumulated Depreciation Book Valuearrow_forward
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