On January 2, Bering Company disposes of a machine costing $47,800 with accumulated depreciation of $25,749. Prepare the entries to record the disposal under each separate situation. The machine is sold for $18,494 cash. The machine is traded in for a new machine having a $64,300 cash price. A $22,762 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance. The machine is traded in for a new machine having a $64,300 cash price. A $17,072 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.

Recording Asset Acquisition, Depreciation, and Disposal On January 2, 2016, Verdi Company acquired a machine for $75,000. In addition to the purchase price, Verdi spent $2,100 for shipping and installation, and $2,600 to calibrate the machine prior to use. The company estimates that the machine has a useful life of 5 years and a residual value of $11,000. Required a. Prepare journal entries to record the acquisition costs. Description Debit + → b. Calculate the annual depreciation expense using straight-line depreciation and prepare a journal entry to record depreciation expense for 2016. Description Credit Cash ◆ ◆ Accumulated depreciation c. On December 31, 2019, Verdi sold the machine to another company for $14,000. Prepare the necessary journal entry to record the sale. Credit Description Debit Credit Debit ◆ ♦

Help Save Required information Enter your search term E8-4 (Algo) Determining Financial Statement Effects of an Asset Acquisition and Depreciation (Straight- Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $23,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 9 percent interest due in six months. On January 3, it paid $600 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,800. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,200. E8-4 Part 2 2. Compute the acquisition cost of the machine. Acquisition…

Current Attempt in Progress On July 1, 2014, Sheridan Enterprises sold equipment with an original cost of $79,000 for $30,600. The equipment was purchased January 1, 2011, and was depreciated using the straight-line method over a five-year useful life with a $8,400 salvage value. Prepare the journal entry to record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Cash Accumulated Depreciation-Equipment Equipment gain on Debit Credit IHI

Rexford Company purchased a machine on January 1, 2017, for $57,600 cash. The machine has an estimated useful life of 8 years and a salvage value of $15,040. Rexford uses the double declining-balance method of depreciation for all its assets. What will be the machine's carrying amount as of December 31, 2018? a.$43,200 b.$32,400 c.$10,800 d.$14,400

Comparison of Depreciation Methods P7.                                                                                                 Bao Wao Designs Inc. purchased a computerized blueprint printer that will assist in the design and display of plans for factory layouts. The cost of the printer was $22,500, and its expected useful life is four years. The company can probably sell the printer for $2,500 at the end of four years. The printer is expected to last 6,000 hours. It was used 1,200 hours in year 1; 1,800 hours in year 2; 2,400 hours in year 3; and 600 hours in year 4. Required Compute the annual depreciation and carrying value for the new blueprint printer for each of the four years (round to the nearest dollar where necessary) under each of the following methods: (a) straight-line, (b) production, and (c) double-declining balance. If the printer is sold for $12,000 after year 2, what would be the gain or loss under each method? Accounting Connection ▶ What conclusions can you…

Frey, Inc. purchased a machine for $600,000 on January 2, 2017. The machine has an estimated useful life of 4 years and a salvage value of $100,000. The machine is being depreciated using the sum-of-the-years'-digits method. The December 31, 2018 asset balance, net of accumulated depreciation, should be: Select one: a. $250,000 Ob. $350,000 c. $280,000 Od. $320,000 $450,000

Saved Help Save & Exi Check Required information Enter your search term E8-4 (Algo) Determining Financial Statement Effects of an Asset Acquisition and Depreciation (Straight- Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $23,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 9 percent interest due in six months. On January 3, it paid $600 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,800. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,200. E8-4 Part 5 5. What would be the net book value of…

Zimmer Company sold the following two machines in 2021: Machine A Machine B Cost $76,000 $80,000 Purchase date 5/1/17 1/1/18 Useful life 8 years 5 years Salvage value $4,000 $4,000 Depreciation method Straight-line Double-declining-balance Date sold Sales price 7/1/21 $35,000 8/1/21 $16,000 Journalize all entries required to update depreciation and record the sales of the two assets in 2021. The company has recorded depreciation on the machines through December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Machine A Date Account Titles and Explanation July 1 Depreciation Expense July 1 Accumulated Depreciation-Machine (To record depreciation expense) Cash Accumulated Depreciation-Machine Debit 4500 35000 36000 Loss on Disposal of Plant Assets 5000 Machine (To record the sale of asset) Machine B Date Account Titles and…