Question

In: Accounting

On January 1, Year 1, the Starshina Company paid $25,000 for a photocopier with an estimated...

On January 1, Year 1, the Starshina Company paid $25,000 for a photocopier with an estimated useful life of 4 years, and an estimated residual value of $5,000. The company uses the double-declining-balance method. What is the amount of depreciation expense for Year 3?

Solutions

Expert Solution


Related Solutions

The company paid $3,700 on January 1 of the current year to have advertisements placed in...
The company paid $3,700 on January 1 of the current year to have advertisements placed in the local monthly neighborhood paper. The ads were to be run from January through June. The bookkeeper debited the full amount to Prepaid Advertising on January 1. 1.Record the adjusting entry for advertisements at March 31 of the current year. 2.Record the adjusting entry for the use of construction equipment during of the current year.
1- The Wilson Company purchased $25,000 of merchandise from the Poole Wholesale Company. Wilson also paid...
1- The Wilson Company purchased $25,000 of merchandise from the Poole Wholesale Company. Wilson also paid $1,800 for freight costs to have the goods shipped to its location. Which of the following statements regarding the necessary entries for the transactions is true? Wilson uses the perpetual inventory system. 2- Company A and Company B are identical in all regards except that during 2016 Company A borrowed $33,000 at an interest rate of 10%. In contrast, Company B obtained financing by...
An asset was purchased for $109,000 on January 1, Year 1 and originally estimated to have...
An asset was purchased for $109,000 on January 1, Year 1 and originally estimated to have a useful life of 11 years with a residual value of $9,500. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $1,800. Calculate the third-year depreciation expense using the revised amounts and straight-line method.
An asset was purchased for $118,000 on January 1, Year 1, and originally estimated to have...
An asset was purchased for $118,000 on January 1, Year 1, and originally estimated to have a useful life of 8 years with a residual value of $10,500. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,600. Calculate the third-year depreciation expense using the revised amounts and straight-line method. Round your answer to the nearest dollar. $22,631 $23,131 $22,131 $21,131
10)Gordon Company purchased an asset on January 1, 2016 for $25,000. At that time, Gordon Company...
10)Gordon Company purchased an asset on January 1, 2016 for $25,000. At that time, Gordon Company estimated the residual value would be $1,000 at the end of the asset's projected ten-year life. It is now January 1, 2020; Gordon Company now estimates the asset will have a residual value of $1,500, and has a remaining useful life of four years (will last until the end of 2023). Assuming Gordon Company uses the straight-line method, what will be the depreciation expense...
= On January 1, 2016, Worthylake Company sold used machinery to Brown Company, accepting a $25,000,...
= On January 1, 2016, Worthylake Company sold used machinery to Brown Company, accepting a $25,000, non-interest-bearing note maturing on January 1, 2018. Worthylake carried the machinery on its books at a cost of $22,000 and a current book value of $15,000. Neither the fair value of the machinery nor the note was determinable at the time of sale; however, Brown’s incremental borrowing rate was 12%. Required: Prepare the journal entries on Worthylake’s books to record: 1. sale of the...
1. Jalloh Company purchased machinery for $162,000 on January 1, 2017. It is estimated that the...
1. Jalloh Company purchased machinery for $162,000 on January 1, 2017. It is estimated that the machinery will have a useful life of 20 years, salvage value of $15,000, production of 84,000 units, and working hours of 42,000. During 2017, the company uses the machinery for 14,300 hours, and the machinery produces 20,000 units. Compute depreciation under the straight-line, unit of output, working hours, sum of the year’s digits, and double-declining balance methods.
1/ An asset acquired January 1, 2018, for $14,300 with an estimated 10-year life and no...
1/ An asset acquired January 1, 2018, for $14,300 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2019, for $5,400. The entry to record the sale would be: Multiple Choice Cash 5,400 Accumulated depreciation 8,900 Equipment 14,300 Cash 5,400 Accumulated depreciation 3,575 Loss on sale of equipment 5,325 Equipment 14,300 Cash 5,400 Loss on...
1.ABC Company started business on January 1, 20xx. The company estimated that sales for the first...
1.ABC Company started business on January 1, 20xx. The company estimated that sales for the first six months would be as follows: Month Units Dollars January 10,000 $ 50,000 February 8,000 40,000 March 15,000 75,000 April 17,000 85,000 May 22,000 110,000 June 30,000 150,000 The company sells all items on account and expects collections of accounts receivable to be as follows: 60% in the month of the sale, and the remaining 40% in the month after the sale. Required: Compute...
A machine costing $250,000 with a five-year life and an estimated $25,000 salvage value is installed...
A machine costing $250,000 with a five-year life and an estimated $25,000 salvage value is installed in Sun Company’s factory on January 1. The factory manager estimates the machine will produce 400,000 units of product during its life. It actually produces the following units: year 1-100,000, year 2-120,000 and year 3-20,000 units. Prepare depreciation schedules computing depreciation for the first 3 years under the straight-line method and units of production method.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT