Morrow Co. had an ending balance of $1900 for equipment. The company purchased $2300 of equipment...

Morrow Co. had an ending balance of $1900 for equipment. The company purchased $2300 of equipment and retired $750 of equipment during the year. What was the beginning balance of the account?

Expert Solution

purchased equipment=$2300

retired equipment=$750

ending balance=$1900

beginning balance of equipment=$750+$1900-$2300=$350

ekkarill92 answered 2 years ago

Ivanhoe Co. purchased equipment on March 1, 2015, for $110,000 on account. The equipment had an...

Ivanhoe Co. purchased equipment on March 1, 2015, for $110,000 on account. The equipment had an estimated useful life of five years, with a residual value of $5,000. The equipment is disposed of on February 1, 2018. Ivanhoe Co. uses the diminishing-balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month. The company has an August 31 year end. Record the acquisition of the equipment on March 1, 2015. (Credit account titles...

Express Co, purchased equipment on March 1, 2015, for $95,000 on the account. The equipment had...

Express Co, purchased equipment on March 1, 2015, for $95,000 on the account. The equipment had an estimated useful life of five years, with a residual value of $5,000. The equipment is disposed of on February 1, 2018. Express Co, use the diminishing-balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month. The company has an August 31 year end. a) Record the acquisition of the equipment on March 1, 2015, b)Record...

On January 1, 2012, Bushong Company purchased equipment at a cost of $12,600. The equipment had...

On January 1, 2012, Bushong Company purchased equipment at a cost of $12,600. The equipment had an estimated useful life of 6 years or 30,000 hours. The equipment will have a $1,200 salvage value at the end of its life. The equipment was used 6,500 hours in 2012. The depreciation expense for the year ending December 31, 2012, using the units-of-production method would be:

The Dalen Company purchased office equipment that cost $6,100 cash on January 1. The equipment had...

The Dalen Company purchased office equipment that cost $6,100 cash on January 1. The equipment had an estimated five year useful life and an estimated salvage value of $300. The amount of expense shown on the income statement and the amount of cash outflow from operating activities shown on the statement of cash flows at the end of the first year would be (assume straight-line depreciation): Income Statement Statement of Cash Flows A. $ 6,100 $ 6,100 B. $ 1,160...

The Accumulated Depreciation – Equipment account of a clothing company had a balance of $110,000 on...

The Accumulated Depreciation – Equipment account of a clothing company had a balance of $110,000 on January 1, 2019. After adjusting entries were posted, the account showed a balance of $132,000 (at the end of 2019). During 2019, the company sold a piece of equipment that cost $45,000 for $22,000. This caused a loss of $1,000. What was the depreciation expense for 2019 if you assume the company did not dispose of other assets in 2019? Please show all steps.

i. Calculate B.V. of ending equipment assuming you started the year with $100,000 in equipment, purchased...

i. Calculate B.V. of ending equipment assuming you started the year with $100,000 in equipment, purchased $25,000 in new equipment during the year, and deducted $10,000 in depreciation. ii. Calculate ending receivables assuming opening receivables were $0 and sales and collections for the year were $600,000 and $580,000 respectively. iii. Calculate ending inventory assuming opening inventory was $40,000 and purchases and COGS were $280,000 and $290,000 respectively. iv. Calculate ending equity if opening paid in capital was $100,000 and retaining...

On January 1, 2019 Lessee Co., leased equipment from Lessor Co. The equipment had a useful...

On January 1, 2019 Lessee Co., leased equipment from Lessor Co. The equipment had a useful life of 6 years, a fair market value of $50,000, and a cost to Lessor Co. of $35,000. Lessor used an implicit interest rate of 7%. The lease is for 6 years, and calls for payments of $8,497 on January 1 of each year beginning January 1, 2019. The residual value of the equipment on December 31, 2024 is estimated to be $10,000, and...

Change in Estimates. On January 1, 2018, Hogan Manufacturing Co. purchased equipment for $400,000. The company...

Change in Estimates. On January 1, 2018, Hogan Manufacturing Co. purchased equipment for $400,000. The company expects the equipment to be in use for 6 years, and to have a salvage value of 10% of the original cost at the end of its useful life. At the beginning of 2020, Hogan revised its estimate of the equipment’s useful life from 6 years to a total of 10 years, and also at that time reduced the estimated salvage value to zero....

Baxter Equipment Company - Balance Sheet for Years Ending December 31st Note: All figures add 3...

Baxter Equipment Company - Balance Sheet for Years Ending December 31st Note: All figures add 3 zeros ($000) 2019 2018 Assets Cash $50 $55 Marketable Securities $0 $25 Accounts Receivable $350 $315 Inventories $300 $215 Total Current Assets $700 $610 Plant & Equipment (at cost) $1,800 $1,470 Less Ac. Depreciation $500 $400 Net Plant & Equipment $1,300 $1,070 Total Assets $2,000 $1,680 Liabilities & Stockholder Equity Accounts Payable $60 $30 Notes Payable $100 $60 Accruals $140 $130 Total Current Liabilities...

Hercules Exercise Equipment Co. purchased a computerizedmeasuring device two years ago for $56,000. The equipment...

Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $56,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $23,800. A new piece of equipment will cost $146,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12–12. Use Appendix B for an approximate answer but calculate your...

Question