Question
In: Accounting
SEAT Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5 years;...
SEAT Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5 years; salvage value, $16,200 $503,700 Building, estimated service life, 30 years; no salvage value $648,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2018, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method.
(a) Prepare the journal entry to record depreciation expense for the equipment in 2018.
(b) Prepare the journal entry to record depreciation expense for the building in 2018
Solutions
ekkarill92 answered 2 hours agoRelated Solutions
Carla Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5...
Carla Cole Inc. acquired the following assets in January of
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$16,000 $559,000 Building, estimated service life, 30 years; no
salvage value $675,000 The equipment has been depreciated using the
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Novak Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5...
Novak Cole Inc. acquired the following assets in January of
2018.
Equipment, estimated service life, 5 years; salvage value,
$15,700
$486,700
Building, estimated service life, 30 years; no salvage
value
$711,000
The equipment has been depreciated using the
sum-of-the-years’-digits method for the first 3 years for financial
reporting purposes. In 2021, the company decided to change the
method of computing depreciation to the straight-line method for
the equipment, but no change was made in the estimated service life
or salvage...
Pina Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5...
Pina Cole Inc. acquired the following assets in January of
2018.
Equipment, estimated service life, 5 years; salvage value,
$15,200
$525,200
Building, estimated service life, 30 years; no salvage
value
$693,000
The equipment has been depreciated using the
sum-of-the-years’-digits method for the first 3 years for financial
reporting purposes. In 2021, the company decided to change the
method of computing depreciation to the straight-line method for
the equipment, but no change was made in the estimated service life
or salvage...
Equipment acquired on January 5 at a cost of $151,710, has an estimated useful life of...
Equipment acquired on January 5 at a cost of $151,710, has an
estimated useful life of 16 years, has an estimated residual value
of $9,950, 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? $ b. Assuming that the equipment was sold on April 1
of the fifth year for 107,900. 1. Journalize the entry to record
depreciation for the three months until the...
Equipment acquired on January 6 at a cost of $335,190, has an estimated useful life of...
Equipment acquired on January 6 at a cost of $335,190, has an
estimated useful life of 13 years and an estimated residual value
of $68,690.
Required:
a. What was the annual amount of depreciation for Years 1-3
using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1 of
Year 3?
c. Assuming that the equipment was sold on January 3 of Year 4
for $256,655, journalize the entry to record the sale....
Equipment acquired on January 6 at a cost of $335,190, has an estimated useful life of...
Equipment acquired on January 6 at a cost of $335,190, has an
estimated useful life of 13 years and an estimated residual value
of $68,690. A. What was the annual amount of depreciation for the
Years 1-3 using the straight-line method of depreciation? B. What
was the book value of the equipment on January 1 of Year 4? C.
Assuming that the equipment was sold on January 3 of Year 4 for
$256,655, journalize the entry to record the sale....
Equipment acquired on January 8 at a cost of $101,300 has an estimated useful life of...
Equipment acquired on January 8 at a cost of $101,300 has an
estimated useful life of 13 years, has an estimated residual value
of $9,000, 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?
$
b. Assume that the equipment was sold on April
1 of the fifth year for $64,700.
1. Journalize the entry to record depreciation
for the three months until the...
Equipment acquired on January 8 at a cost of $101,130 has an estimated useful life of...
Equipment acquired on January 8 at a cost of $101,130 has an
estimated useful life of 13 years, has an estimated residual value
of $10,000, 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?
$
b. Assume that the equipment was sold on April
1 of the fifth year for $65,197.
1. Journalize the entry to record depreciation
for the three months until the...
Equipment acquired on January 8 at a cost of $144,930 has an estimated useful life of...
Equipment acquired on January 8 at a cost of $144,930 has an
estimated useful life of 14 years, has an estimated residual value
of $8,850, and is depreciated by the straight-line method.
a.
What was the book value of the equipment at December 31 the end
of the fifth year?
b.
Assuming that the equipment was sold on April 1 of the sixth
year for $88,570, journalize the entries to record (1) depreciation
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Equipment acquired on January 6,2013, at a cost of 405,115, has an estimated useful life of...
Equipment acquired on January 6,2013, at a cost of 405,115, has an
estimated useful life of 16 years and an estimated residual value
of 61,595.
Required:
A). What was the annual amount of depreciation for the years
2013,2014,and 2015 using the straight line method of
depreciation?
B). What was the book value of the equipment on January 1,
2016
C). Assuming that the equipment was sold on January 3,2016 for
$325,545 journalize the entry to record the sale. Refer to...
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