Chapter 2, Problem 2.9P

A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.

At December 31, 2020, Flint Company reported the following as plant assets. Land $ 3,770,000 Buildings $27,290,000 Less: Accumulated depreciation-buildings 12,170,000 15,120,000 Equipment 48,020,000 Less: Accumulated depreciation-equipment 4,550,000 43,470,000 Total plant assets $62,360,000 During 2021, the following selected cash transactions occurred. April 1 Purchased land for $2,190,000. Sold equipment that cost $900,000 when purchased on January 1, 2017. The equipment was sold for $540,000. Sold land purchased on June 1, 2011 for $1,540,000. The land cost $394,000. Purchased equipment for $2,530,000. Retired equipment that cost $491,000 when purchased on December 31, 2011. The company received no proceeds related to salvage. May 1 June 1 July 1 Dec. 31

On May 1, a commercial baking company purchased a commercial oven on account. The oven costs $40,000, has a life of 5 years, and has no salvage value. The company ordinally uses straight-line depreciation. The company recorded the following transaction. Debit equipment maintenance expense $40,000; credit Accounts payable $40,000. The company paid for the oven in June. If the company does not correct this error before December 31, which impact will the error have on the balance sheet? Property. plant, and equipment (PP&E) will be understated Operating expenses will be understated Property. plant and equipment (PP&E) will be overstated Accumulated depreciation will be overstated A hospital accidentally invoiced a patient twice for the same treatment, which cost $800. The patient received two invoices and paid them both. The hospital recorded $1,600 of revenue and $1,600 of payments. If the books have not been closed for this period, which entry would correct the hospital's error? • Debit…

Assume that Brown's Salvage Company paid $30,000 for equipment with a 10-year life and zero expected residual value. After using the equipment for four years, the company determines that the asset will remain useful for only three more years. Read the requirements. Requirement 1. Record depreciation expense on the equipment for year 5 by the straight-line method. First, select the formula to calculate the company's revised depreciation expense on the equipment for year 5. Then enter the amounts and calculate the depreciation for year 5. (Enter "0" for items with a zero value.) Date Record the depreciation on the equipment for year 5. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation Requirement 2. What is accumulated depreciation at the end of year 5? The accumulated depreciation at the end of year 5 is $ = Debit Revised depreciation Credit

A machine costing $75,000 is purchased on September 1, Year 1. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining-balance depreciation is used. If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include: A. A credit to gain on sale for $8,000.   B. A debit to loss on sale for $2,625.   C. A credit to accumulated depreciation for $59,375.   D. A debit to loss on sale for $3,042.   E. A credit to gain on sale for $4,979.

Last year, Mountain Top, Incorporated, purchased a coal mine at a cost of $900,000. The salvage value has been estimated at $100,000. The coal mine has an estimated 200,000 tons of available coal. A total of 70,000 tons were mined and sold during the current year. Complete the necessary adjusting journal entry to record depletion expense for the current year by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet 1 Last year, Mountain Top, Inc., purchased a coal mine at a cost of $900,000. The salvage value has been estimated at $100,000. The coal mine has an estimated 200,000 tons of available coal. A total of 70,000 tons were mined and sold during the current year. Note: Enter debits before credits. Date Dec. 31 General Journal Debit Credit >

At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $290,000. It is expected to have a five-year life and a $40,000 salvage value. Required a. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. (2) Double-declining-balance depreciation. b. Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double- declining-balance methods in a financial statements model.

At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $52,000. It is expected to have a five-year life and a $7,000 salvage value. Required a. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. (2) Double-declining-balance depreciation. b. Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double- declining-balance methods in a financial statements model. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Compute the depreciation for each of the five years, assuming that the company uses straight-line depreciation.

A machine costing $75,000 is purchased on January 1, Year 1. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining-balance depreciation is used. If the machine is sold on January 1, Year 4 for $9,000, the journal entry to record the sale will include:   A credit to gain on sale for $1,000.   A debit to loss on sale for $1,000.   A credit to accumulated depreciation for $65,000.   A credit to loss on sale for $1,000.   A credit to cash for $9,000.