Docker Company purchased equipment on July 19, 2016, for $400,000. The estimated useful life is 8...

Docker Company purchased equipment on July 19, 2016, for $400,000. The estimated useful life is 8 years and residual value is $60,000. On April 7, 2022, they sold the equipment for $100,000. Docker rounds depreciation to the nearest month.

Required

Provide all journal entries necessary for the sale of the equipment under the following conditions:

Docker uses straight line depreciation.
Docker uses double declining balance depreciation.

Expert Solution

Working attached

ekkarill92 answered 2 years ago

On July 1, 2016, Johnny Company purchased equipment for $550,000. The estimated useful life of the...

On July 1, 2016, Johnny Company purchased equipment for $550,000. The estimated useful life of the equipment is 10-years. It is predicted that the equipment can be sold at the end of the 10-year period for $90,000. Johnny uses the double-declining balance depreciation method. Johnny recorded depreciation normally during 2016, 2017, and 2018. However, because Johnny determined that the equipment was no longer useful to the company, Johnny sold the equipment on June 30, 2019 for $400,000. 1. Based on...

A company purchased equipment for $400,000 which was estimated to have a useful life of 14...

A company purchased equipment for $400,000 which was estimated to have a useful life of 14 years with a salvage or residual value of $22,000 at the end of that time. Depreciation has been recorded for 2 years on a straight-line basis. In 2020 (year 3), it is determined that the total estimated life should be 17 years with a residual or salvage value of $16,000 at the end of that time. What is the net book value a the...

On July 1, 2020, Yorkton Company purchased for $420,000 equipment having an estimated useful life of...

On July 1, 2020, Yorkton Company purchased for $420,000 equipment having an estimated useful life of five years with an estimated residual value of $20,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end. Required: Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.)

On July 1, 2017, Sparks Company purchased for $4,300,000 an equipment having an estimated useful life...

On July 1, 2017, Sparks Company purchased for $4,300,000 an equipment having an estimated useful life of 5 years with an estimated residual value of $200,000. Depreciation is taken for the portion of the year the asset is used. Instructions (a) Complete the form below by determining the depreciation expense and year-end book values for 2017and 2018 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. Sum-of-the-Years'-Digits Method 2017 2018 Equipment $4,300,000 $4,300,000 Less: Accumulated Depreciation ...

On July 1, 2012, Okin Company purchased equipment for $280,000; the estimated useful life was 10...

On July 1, 2012, Okin Company purchased equipment for $280,000; the estimated useful life was 10 years and the expected salvage value was $25,000. Straight-line depreciation is used. On July 1, 2016, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Okin evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $125,000. a. Is the equipment impaired at July 1,...

On January 1, 2016, Nicholas Company purchased Office Equipment for $129,000 with an estimated useful life...

On January 1, 2016, Nicholas Company purchased Office Equipment for $129,000 with an estimated useful life of 5 years, or 137,500 hours and a residual value of $19,000. Compute the annual depreciation at the end of 2018, the 3rd year, under each of the following depreciation method for Nicholas Company.

On July 1, 2019, Oriole Company purchased new equipment for $80,000. Its estimated useful life was...

On July 1, 2019, Oriole Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $8,000 salvage value. On January 1, 2022, before making its depreciation entry for 2022, the company estimated the remaining useful life to be 10 years beyond December 31, 2022. The new salvage value is estimated to be $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do...

On July 1, 2019, Crane Company purchased new equipment for $90,000. Its estimated useful life was...

On July 1, 2019, Crane Company purchased new equipment for $90,000. Its estimated useful life was 7 years with a $13,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...

Impairment Loss On July 1, 2015, Karen Company purchased equipment for $325,000; the estimated useful life...

Impairment Loss On July 1, 2015, Karen Company purchased equipment for $325,000; the estimated useful life was 10 years and the expected salvage value was $40,000. Straight-line depreciation is used. On July 1, 2019, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Karen evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $195,000. a. Is the equipment impaired at...

On July 1, 2020, Concord Company purchased for $7,200,000 snow-making equipment having an estimated useful life...

On July 1, 2020, Concord Company purchased for $7,200,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $300,000. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment $7,200,000 $7,200,000 Less: Accumulated Depreciation $ $ Year-End Book Value...

Question