1)
Introduction:
The depreciation expense for the years 2021 and 2022
2)
Introduction: Depreciation links the cost of using a tangible item to the benefit received throughout its useful life. The accumulated depreciation account contains the amount charged for depreciation on the balance sheet.
The depreciation expense for the years 2021 and 2022
3)
Introduction: Depreciation links the cost of using a tangible item to the benefit received throughout its useful life. The accumulated depreciation account contains the amount charged for depreciation on the balance sheet.
The depreciation expense for the years 2021 and 2022
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NSU COMBO F/INTERM.ACCTG-CONNECT ACCESS
- The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 Date A building that cost $182,160 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,038 and was permitted to keep all materials salvaged. 1/30 Machinery that was purchased in 2013 for $22,080 is sold for $4,002 cash, f.o.b. purchaser's plant. Freight of $414 is paid on the sale of this machinery. A gear breaks on a machine that cost $12,420 in 2012. The gear is replaced at a cost of $2,760. The replacement does not extend the useful life of the machine but does make the machine more efficient. Prepare general journal entries for the…arrow_forwardOn September 20, 2020, Shamille Company purchased machinery for P7,600,000. Residual value wasestimated to be P400,000. The machinery is depreciated over eight years using the sum of the years’ digitsmethod. Depreciation is computed on the basis of the nearest fullest month. What amount should be recordedas depreciation for 2021?A. 1,450,000B. 1,600,000C. 1,550,000D. 1,400,000arrow_forwardWhat is the net book value of the Trucks on December 31, 2021? The TOTAL depreciation expense recorded for the 4-year period (2018-2021) is overstated or understated by? (If understated, put a negative (-) sign before the numerical figure)arrow_forward
- Computational. ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated residual value of P200,000 and 20 years estimated useful life. On December 31, 2021, the replacement cost of the equipment is P2,400,000. A year after, the replacement cost has declined to 1,700,000. Round off percentage to whole number and to nearest peso if you are required to gross up. Determine the loss due to revaluationarrow_forwardThe following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20. May 18 June 23 A building that cost $198,000 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,650 and was permitted to keep all materials salvaged. Machinery that was purchased in 2013 for $24,000 is sold for $4,350 cash, fo.b. purchaser's plant. Freight of $450 is paid on the sale of this machinery. A gear breaks on a machine that cost $13,500 in 2012. The gear is replaced at a cost of $3,000. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2014 when the…arrow_forwardAn equipment has a total depreciation of P35,000 at the end of first year. If the First cost is P140,000 and the salvage value is P10,000. Calculate the uselife by double declining balance method of depreciation.arrow_forward
- The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $137,280 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,304 and was permitted to keep all materials salvaged. Date Machinery that was purchased in 2018 for $16,640 is sold for $3,016 cash, f.o.b. purchaser's plant. Freight of $312 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,360 in 2017. The gear is replaced at a cost of $2,080. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the…arrow_forwardThe following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $155,760 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $6,018 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $18,880 is sold for $3,422 cash, fo.b. purchaser's plant. Freight of $354 is paid on the sale of this machinery. A gear breaks on a machine that cost $10,620 in 2017. The gear is replaced at a cost of $2,360. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the machine…arrow_forwardAssuming the machine is depreciated using SYD and estimated residual value of P120,000 after its 6 years of physical life. The recoverable amount of the machine at the end of 2022 and 2023, respectively were P3,100,000 and P2,400,000. What is the amount of gain on recovery and revaluation surplus for the period ending December 31, 2023?arrow_forward
- The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $139,920 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,406 and was permitted to keep all materials salvaged. Date Machinery that was purchased in 2018 for $16,960 is sold for $3,074 cash, f.o.b. purchaser's plant. Freight of $318 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,540 in 2017. The gear is replaced at a cost of $2,120. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the…arrow_forwardThe following transactions occurred during 2020. Assume that depreciation of 15% per year is charged on all machinery and 7.5% per year on buildings, on a straight-line basis, with no estimated residual value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Feb. 10 A building that cost $115,000 in 2005 is torn down to make room for a new building. The wrecking contractor was paid $5,500 and was permitted to keep all materials salvaged. June 15 Machinery that was purchased in 2016 for $18,000 is sold for $1,500 cash, 10 f.o.b. purchaser’s plant. Freight of $700 is paid on the sale of this machinery. July 28 A special base installed for a machine in 2018 when the machine was purchased has to be replaced at a cost of $7,500 because of defective workmanship on the original base. The cost of the machinery was $14,500 in 2018. The cost of the base was $5,000, and this amount was…arrow_forwardUsing the sum-of-the-years-digits method, how much depreciation expense should Vorst record in 2020 for Asset B? a. 6,000 b. 9,000 c. 11,000 d. 12,000arrow_forward
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