Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
9th Edition
ISBN: 9781260260779
Author: Wild
Publisher: MCG
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Astro Company sold equipment on July 1, 2021 for $75,000. The equipment had cost $210,000 and had $120,000 of accumulated
depreciation as of January 1, 2021. The equipment is being annually depreciated at an amount of $24,000.
Required:
Prepare the necessary journal entries to:
A. Update the depreciation for the equipment.
B. Record the sale of the equipment.
Volkswagen Group reported the following information for property, plant, and equipment, along with additions, disposals, depreciation, and impairments, for a recent year-end (euros in millions). Property, plant, and equipment, net . €46,169 Additions to property, plant, and equipment . 11,560 Disposals of property, plant, and equipment . 2,430 Depreciation on property, plant, and equipment . €7,509 Impairments to property, plant, and equipment 143 1. Prepare Volkswagen’s journal entry to record depreciation. 2. Prepare Volkswagen’s journal entry to record additions assuming they are paid in cash and are treated as “betterments (improvements)” to the assets. 3. Prepare Volkswagen’s journal entry to record €2,430 in disposals assuming it receives €720 cash in return and the accumulated depreciation on the disposed assets totals €1,195. 4. Volkswagen reports €143 of impairments. Do these impairments increase or decrease the Property, Plant, and Equipment account? By what amount?
On December 31, 2025, Wildhorse Inc. has a machine with a book value of $1,278,400. The original cost and related accumulated
depreciation at this date are as follows.
Machine
Less: Accumulated depreciation
Book value
(a)
Depreciation is computed at $81,600 per year on a straight-line basis.
Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the
transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.
Date
Your answer is partially correct.
ug. 31, 2026
$1,768,000
A fire completely destroys the machine on August 31, 2026. An insurance settlement of $584,800 was received for this casualty.
Assume the settlement was received immediately. (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 O for the amounts. List all debit…
Chapter 8 Solutions
Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Identify events that might lead to disposal of a...Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Refer to the December 31, 2016, balance sheet of...Ch. 8 - Prob. 20DQCh. 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. 10QSCh. 8 - Identify the following assets a through i as...Ch. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Caleb Co. owns a machine that costs $42,400 with...Ch. 8 - Prob. 15QSCh. 8 - Prob. 16QSCh. 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 - On January 2, 2018, Bering Co. disposes of a...Ch. 8 - Prob. 25ECh. 8 - Prob. 26ECh. 8 - Timberly Construction negotiates a lump-sum...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Onslow Co. purchases a used machine for $178,000...Ch. 8 - Prob. 7PSACh. 8 - Prob. 8PSACh. 8 - Prob. 2PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8PSBCh. 8 - Selected ledger account balances for Business...Ch. 8 - Prob. 3FSACh. 8 - Prob. 5BTN
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- Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000arrow_forwardSunland Corporation owns machinery that cost $25,200 when purchased on July 1, 2022. Depreciation has been recorded at a rate of $3,024 per year, resulting in a balance in accumulated depreciation of $10,584 at December 31, 2025. The machinery is sold on September 1, 2026, for $13,230. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale.arrow_forwardFreedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $41,000. The machine has an estimated life of five years and an estimated salvage value of $6,700.Required: Calculate the depreciation expense for each year of the asset's life using A. Straight-line depreciation. B. Double-declining-balance depreciation. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method? (Note: The machine will have been used for one-half of its first year of life.) Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method.arrow_forward
- Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been depreciated using the straight-line method based on an estimated salvage value of $10,000 and an estimated useful life of 5 years. Depreciation expense adjustments are recognized annually. Instructions: Prepare Whispering Company's journal entries to record the sale of the equipment in these four independent situations. Update depreciation on assets disposed of at time of sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) (d) (e) (f) (a) Sold for $59,000 on January 1, 2022. Sold for $59,000 on April 1, 2022. SR. Account Titles and Explanation (b) Sold for $21,000 on January 1, 2022. Sold for $21,000 on September 1, 2022. Repeat (a), assuming Whispering uses double-declining…arrow_forwardJ. Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine date of purchase cost date of disposal MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of 20 per cent per annum. Required: For the years 2018, 2019 and 2020, calculate the depreciation attributable to each year using prorata or time basis.arrow_forwardDuring 2018, Starbucks purchased fixed assets costing approximately $1.8 billion. Assume that the company purchased the assets at the beginning of the year, uses straight-line depreciation, and normally depreciates its equipment over four years. Assume a zero salvage value. a. Compute the book value of the equipment at the end of each of the four years. b. Complete a chart like the following. 2018 2019 2020 2021 Total Depreciation expense (in millions) Cash outflow associated with purchase of equipment (in millions)arrow_forward
- An item of machinery was sold within the year for €5,200. The machinery asset cost the company €10,400 over two years ago. The closing balances on the machinery cost account and the machinery accumulated depreciation account were €121,000 and €18,500 respectively. It is company policy to provide for depreciation in the year of purchase but not in the year of sale. (Two years' depreciation charged at 20 per cent straight line per year had been expensed in relation to this asset.) What is the balance of the accumulated depreciation account after disposal? А. €18,500 cr В. €36,460 cr C. None of these D. €22,120 cr E. €36,460 drarrow_forwardVaughn Corporation owns machinery that cost $26,000 when purchased on July 1, 2021. Depreciation has been recorded at a rate of $3,120 per year, resulting in a balance in accumulated depreciation of $10,920 at December 31, 2025. The machinery is sold on September 1, 2026, for $6,760. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale. (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 O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation (a) (b) Debit Creditarrow_forwardDuck Pond Golf Club purchased equipment on January 1, 2018, for $48,282. Suppose Duck Pond Golf Club sold the equipment for $36,000 on December 31, 2020. Accumulated Depreciation as of December 31, 2020, was $22,284. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) Course Chat Time 1 GB V 19arrow_forward
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