Question
In: Accounting
6.On January 1, 2017, Frostburg Company purchased for $68,500, equipment having a service life of six...
6.On January 1, 2017, Frostburg Company purchased for $68,500, equipment having a service life of six years and an estimated residual value of $4,000. Frostburg has recorded depreciation of the equipment using the straight-line method. On December 31, 2019, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of $35,000. The transaction has commercial substance. Use this information to prepare all General Journal entries (without explanation) required to record the events for December 31, 2019.
7. Bowie Company uses a calendar year and the straight line depreciation method. On December 31, 2018, after adjusting entries were posted, Bowie Company sold a machine which was originally purchased on January 1, 2015. The historical cost was $21,500, the salvage value assumed was $1,500 and the original estimated life was five years.. It was sold for $3,400 cash. Using this information, how much should be recorded on December 31 for the Gain or (Loss)? Round to whole dollars.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2017, Frostburg Company purchased for $68,500, equipment having a service life of six...
On January 1, 2017, Frostburg Company purchased for $68,500,
equipment having a service life of six years and an estimated
residual value of $4,000. Frostburg has recorded depreciation of
the equipment using the straight-line method. On December 31, 2019,
before making any annual adjusting entries, the equipment was
exchanged for new machinery having a fair value of $35,000. The
transaction has commercial substance. Use this information to
prepare all General Journal entries (without explanation) required
to record the events for...
On July 1, 2016, Alpha Company purchased for $76,000, equipment having a service life of eight...
On July 1, 2016, Alpha Company purchased for $76,000,
equipment having a service life of eight years and an estimated
residual value of $14,000. Alpha has recorded depreciation of the
equipment using the straight line method. On December 31, 2018,
before making any annual adjusting entries, the equipment was
exchanged for new machinery having a fair value of $35,000. The
transaction has commercial substance. Use this information to
prepare all General Journal entries (without explanation) required
to record the events...
On July 1, 2016, Alpha Company purchased for $72,000, equipment having a service life of eight...
On July 1, 2016, Alpha Company purchased for $72,000,
equipment having a service life of eight years and an estimated
residual value of $6,000. Alpha has recorded depreciation of the
equipment using the double-declining balance method. On December
31, 2018, before making any annual adjusting entries, the equipment
was exchanged for new machinery having a fair value of $32,500. The
transaction has commercial substance. Use this information to
prepare all General Journal entries (without explanation) required
to record the events...
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 January 1, 2017, Sunland Company purchased a copyright for $2292000, having an estimated useful life...
On January 1, 2017, Sunland Company purchased a copyright for
$2292000, having an estimated useful life of 16 years. In January
2021, Sunland paid $339000 for legal fees in a successful defense
of the copyright. Copyright amortization expense for the year ended
December 31, 2021, should be
On January 1, 2018, Sport Company purchased for $800,000 equipment having an estimated useful life of...
On January 1, 2018, Sport Company purchased for
$800,000 equipment having an estimated useful life of 4 years with
an estimated salvage value of $20,000.
Determine the depreciation expense and year-end book values for
2018 and 2019 using the
(1). Sum-of-the-Years'-Digits Method
(2). Straight-Line Method
(3). Double-declining method
On July 1, 2017, Sport Company purchased for $3,600,000 snow-making equipment having an estimated useful life...
On July 1, 2017, Sport Company purchased for $3,600,000
snow-making equipment having an estimated useful life of 5 years
with an estimated salvage value of $150,000. Depreciation is taken
for the portion of the year the asset is used.
During 2019, the company determined that the equipment would
be useful to the company for only one more year beyond 2019.
Salvage value is estimated at $200,000. What is the depreciation
base of this asset?
Please help me understand how to...
On July 1, 2017, Sport Company purchased for $3,600,000 snow-making equipment having an estimated useful life...
On July 1, 2017, Sport Company purchased for $3,600,000
snow-making equipment having an estimated useful life of 5 years
with an estimated salvage value of $150,000. Depreciation is taken
for the portion of the year the asset is used.
Assume the company had used straight-line depreciation
during 2017 and 2018. During 2019, the company determined that the
equipment would be useful to the company for only one more year
beyond 2019. Salvage value is estimated at $200,000
Compute the amount...
On January 1, 2021, the Allegheny Corporation purchased equipment for $343,000. The estimated service life of...
On January 1, 2021, the Allegheny Corporation purchased
equipment for $343,000. The estimated service life of the equipment
is 10 years and the estimated residual value is $24,000. The
equipment is expected to produce 296,000 units during its
life.
Required:
Calculate depreciation for 2021 and 2022 using each of the
following methods
1. Sum-of-the-years’-digits (Do not
round intermediate calculations. Round final answers to the nearest
whole dollar amount.)
2. One hundred fifty percent declining balance.
(Round final answers to the...
Young Concrete Ltd purchased equipment on 1 January 2017 for $132,000. The expected life of the...
Young Concrete Ltd purchased equipment on 1 January 2017 for
$132,000. The expected life of the equipment is 10 years, or
150,000 units of production, and its residual value is $12,000. The
equipment produces 8,000 units and 13,000 units in years 2017 and
2018 respectively. Under three depreciation methods, the annual
depreciation expense and the balance of accumulated depreciation at
the end of 2017 and 2018 are as follows:
Method A
Method B
Method C
Year
Annual depreciation expense
Accumulated...
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