FINANCIAL AND MANAGERIAL ACCTG W/ACC CRD
9th Edition
ISBN: 9781266515071
Author: Wild
Publisher: MCG CUSTOM
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Chapter 8, Problem 16E
To determine
Concept Introduction:
The effect of the given transactions on the accounting equation.
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Chart of Accounts
Instructions
CHART OF ACCOUNTS
Equipment acquired on January 6 at a cost of $360,550, has an estimated useful ife of 12 years and an estimated residual value of $69.910
General Ledger
Required:
a. What was the annual amount of deoreciation for Years 1-3 using the straight-ine method of depreciation?
REVENUE
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b. What was the book value of the equpment on January 1 of Year 47
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c Assuming that the equipment was sold on January 3 of Year 4 for $272.570, journalize the entry to record the sale Refer to the chart of
610 Interest Revenue
accounts for the eract wording of the account ties CNOW journals do not use lines for journal explanations Every line on a journal page is used
111 Petty Cash
620 Gain on Sale of Delivery Truck
for debit or credt entnes CNOW journals wit automaticaly indent a credit entry when a credit amount is entered
112 Accounts Receivable
a. Assuming that the equipment had been sold on January 3 of Year 4 for $303,490 instead of…
Records show the following information for a plant asset purchased on October 1 of Year 1.
Cost
$ 300,000
Salvage Value
$ 36,000
Purchase Date
October 1
Useful Life
5 years
Calculate depreciation expense for Year 1 and Year 2 for the year ended December 31.
Depreciation expense for Year 1 for the year ended December 31
Depreciation expense for Year 2 for the year ended December 31
Depreciation Method
Straight-line
Entries for Sale of Fixed Asset
Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000, and is
depreciated by the straight-line method.
a. What was the book value of the equipment at December 31 the end of the fourth year?
3,024,00 x
Feedback
V Check My Work
Book value is the initial cost of the fixed asset minus the accumulated depreciation.
b. Assume that the equipment was sold on April 1 of the fifth year for $125,000.
1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank.
Depreciation Expense-Equipment
Accumulated Depreciation-Equipment
Chapter 8 Solutions
FINANCIAL AND MANAGERIAL ACCTG W/ACC CRD
Ch. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QS
Ch. 8 - Prob. 11QSCh. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Prob. 14QSCh. 8 - Prob. 15QSCh. 8 - Prob. 16QSCh. 8 - Prob. 17QSCh. 8 - Prob. 18QSCh. 8 - Prob. 19QSCh. 8 - Prob. 20QSCh. 8 - Prob. 21QSCh. 8 - Prob. 22QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - Prob. 24ECh. 8 - Prob. 25ECh. 8 - Prob. 26ECh. 8 - Prob. 1PSACh. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Prob. 6PSACh. 8 - Prob. 7PSACh. 8 - Prob. 1PSBCh. 8 - Prob. 2PSBCh. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8SPCh. 8 - Prob. 1.1AACh. 8 - Prob. 1.2AACh. 8 - Prob. 1.3AACh. 8 - Prob. 1.4AACh. 8 - Prob. 2.1AACh. 8 - Prob. 2.2AACh. 8 - Prob. 2.3AACh. 8 - Prob. 3.1AACh. 8 - Prob. 3.2AACh. 8 - Prob. 3.3AACh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTN
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