Question
In: Accounting
Stan's Lumber Mill sold two pieces of equipment in 2017. The following information pertains to the...
Stan's Lumber Mill sold two pieces of equipment in 2017. The
following information pertains to the two pieces of
equipment:
Purchase Useful Salvage Depreciation Sales
Cost Date Life Value
Method Date Sold Price
#1 $86,000 7/1/13 5 yrs. $6,000 Straight-line
7/1/17 $20,000
#2 $95,000 1/1/16 5 yrs. $5,000 Double-declining
12/31/17 $37,000
-balance
Instructions
(a) Compute the depreciation on each piece of equipment from the
purchase date to the date of disposal (make a schedule - showing
each year & each piece of equipment separately)
(b) Prepare the journal entries in 2017 to record 2017 depreciation
and the sale of each piece of equipment.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Stan's Lumber Mill sold two pieces of equipment in 2017. The following information pertains to the...
Stan's Lumber Mill sold two pieces of equipment in 2017. The
following information pertains to the two pieces of
equipment:
Purchase Useful Salvage Depreciation Sales
Cost Date Life Value
Method Date Sold Price
#1 $86,000 7/1/13 5 yrs. $6,000 Straight-line
7/1/17 $20,000
#2 $95,000 1/1/16 5 yrs. $5,000 Double-declining
12/31/17 $37,000
-balance
Instructions
(a) Compute the depreciation on each piece of equipment from the
purchase date to the date...
Margot Co. exchanged equipment with Wiese Co. The following information pertains to the two pieces of...
Margot Co. exchanged equipment with Wiese Co.
The following information pertains to the two pieces of
equipment:
Margot Co.
Original
Cost
$ 250,000
Accumulated Depreciation
100,000
Market
Value
200,000
Wiese Co.
Original
Cost
$ 300,000
Accumulated Depreciation
140,000
Market
Value
190,000
Wiese pays $10,000 to Margot.
Assume that the assets exchanged are similar and the
transaction lacks commercial substance.
Assume that the transaction has commercial
substance. Indicate the amounts recognized by Margot and
Wiese at the...
On January 1, 2017, Tamarisk Company leased equipment to Vaughn Corporation. The following information pertains to...
On January 1, 2017, Tamarisk Company leased equipment to Vaughn
Corporation. The following information pertains to this
lease.
1.
The term of the noncancelable lease is 6 years, with no renewal
option. The equipment reverts to the lessor at the termination of
the lease.
2.
Equal rental payments are due on January 1 of each year,
beginning in 2017.
3.
The fair value of the equipment on January 1, 2017, is
$184,000, and its cost is $147,200.
4.
The equipment...
On January 1, 2017, Bensen Company leased equipment to Flynn Corporation. The following information pertains to...
On January 1, 2017, Bensen Company leased equipment to Flynn
Corporation. The following information pertains to this lease:
1.
The term of the non-cancelable lease is 6 years. At the end of
the lease term, Flynn has the option to purchase the equipment for
$1,000, while the expected residual value at the end of the lease
is $5,000.
2.
Equal rental payments are due on January 1 of each year,
beginning in 2017.
3.
The fair value of the equipment...
On January 1, 2017, Carla Vista Company leased equipment to Flynn Corporation. The following information pertains...
On January 1, 2017, Carla Vista Company leased equipment to
Flynn Corporation. The following information pertains to this
lease: 1. The term of the non-cancelable lease is 6 years. At the
end of the lease term, Flynn has the option to purchase the
equipment for $2,000, while the expected residual value at the end
of the lease is $5,000. 2. Equal rental payments are due on January
1 of each year, beginning in 2017. 3. The fair value of the...
The following information pertains to the City of Williamson for 2017, its first year of legal...
The following information pertains to the City of Williamson for
2017, its first year of legal existence. For convenience, assume
that all transactions are for the general fund, which has three
separate functions: general government, public safety, and health
and sanitation.
Receipts:
Property taxes
$394,000
Franchise taxes
51,400
Charges for general government services
5,800
Charges for public safety services
4,900
Charges for health and sanitation services
46,900
Issued long-term note payable
254,500
Receivables at end of year:
Property taxes (90%...
The following information pertains to the City of Williamson for 2017, its first year of legal...
The following information pertains to the City of Williamson for
2017, its first year of legal existence. For convenience, assume
that all transactions are for the general fund, which has three
separate functions: general government, public safety, and health
and sanitation.
Receipts:
Property taxes
$440,000
Franchise taxes
50,100
Charges for general government services
7,300
Charges for public safety services
5,600
Charges for health and sanitation services
45,900
Issued long-term note payable
299,500
Receivables at end of year:
Property taxes (90%...
The following information pertains to the City of Williamson for 2017, its first year of legal...
The following information pertains to the City of Williamson for
2017, its first year of legal existence. For convenience, assume
that all transactions are for the general fund, which has three
separate functions: general government, public safety, and health
and sanitation.
Receipts:
Property taxes
$440,000
Franchise taxes
50,100
Charges for general government services
7,300
Charges for public safety services
5,600
Charges for health and sanitation services
45,900
Issued long-term note payable
299,500
Receivables at end of year:
Property taxes (90%...
The following information pertains to the City of Williamson for 2017, its first year of legal...
The following information pertains to the City of Williamson for
2017, its first year of legal existence. For convenience, assume
that all transactions are for the general fund, which has three
separate functions: general government, public safety, and health
and sanitation.
Receipts:
Property taxes
$320,000
Franchise taxes
42,000
Charges for general government services
5,000
Charges for public safety services
3,000
Charges for health and sanitation services
42,000
Issued long-term note payable
200,000
Receivables at end of year:
Property taxes (90%...
The following information pertains to the City of Williamson for 2017, its first year of legal...
The following information pertains to the City of Williamson for
2017, its first year of legal existence. For convenience, assume
that all transactions are for the general fund, which has three
separate functions: general government, public safety, and health
and sanitation.
Receipts:
Property taxes
$320,000
Franchise taxes
42,000
Charges for general government services
5,000
Charges for public safety services
3,000
Charges for health and sanitation services
42,000
Issued long-term note payable
200,000
Receivables at end of year:
Property taxes (90%...
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