Question
In: Accounting
SEE ATTACHED IMAGE AT BOTTOM -------- Sale of Equipment Equipment was acquired at the beginning of...
SEE ATTACHED IMAGE AT BOTTOM
--------
Sale of Equipment
Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $43,305.
a. What was the depreciation for the first
year? Round your answer to the nearest cent.
$
b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $103,197.
Round your answer to the nearest cent and enter as a positive
amount.
$
c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Solutions
Expert Solution
| a) | Depreciation per year by SLM: = (Original Cost - Salvage value )/Estimated life | |||
| = (637500-43305)/9 | ||||
| 66021.67 | ||||
| Depreciation for the first year would be $66021.67 | ||||
| b) | Note : Calculated book value of machine | |||
| Original Cost | 637,500.00 | |||
| Less: Depreciation for 8 years | 528,173.36 | (66021.67*8 Yr) | ||
| Net book value | 109,326.64 | |||
| Less :Sale price | 103,197.00 | |||
| Loss on sale of machine | (6,129.64) | |||
| Loss on sale of machine $6129.64 | ||||
| c) | General Journal | Debit | Credit | |
| CASH | 103,197.00 | |||
| Loss on Sale of Equipment | 6,129.64 | |||
| Accumulated Depreciation | 528,173.36 | |||
| Equipment | 637,500.00 | |||
| (To record sale of machine) | ||||
| Do rate answer if satisfied, else feel free to ask query in comment box. | ||||
ekkarill92 answered 2 years agoRelated Solutions
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...
Sale of Equipment Equipment was acquired at the beginning of the
year at a cost of $34,000. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of ten years and an estimated residual value of $660. a. What was
the depreciation for the first year? b. Assuming the equipment was
sold at the end of year 2 for $7,860, determine the gain or loss on
the sale of the equipment.
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...
Sale of Equipment
Equipment was acquired at the beginning of the year at a cost of
$29,500. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of ten years and an estimated residual value of $570.
a. What was the depreciation for the first
year?
$
b. Assuming the equipment was sold at the end
of year 2 for $6,820, determine the gain or loss on the sale of the
equipment.
$
c. Journalize the...
Sale of Equipment Equipment was acquired at the beginning of the year at a cost of...
Sale of Equipment Equipment was acquired at the beginning of the
year at a cost of $575,000. The equipment was depreciated using the
straight-line method based on an estimated useful life of 9 years
and an estimated residual value of $44,745. a. What was the
depreciation for the first year? Round your answer to the nearest
cent. $ b. Using the rounded amount from Part a in your
computation, determine the gain(loss) on the sale of the equipment,
assuming it...
Equipment was acquired at the beginning of the year at a cost of $38,500. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$38,500. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of ten years and an estimated residual value of $750.
a. What was the depreciation for the first
year?
$
b. Assuming the equipment was sold at the end
of year 2 for $8,900, determine the gain or loss on the sale of the
equipment.
$ Loss
Feedback
Book value is the asset...
Equipment was acquired at the beginning of the year at a cost of $75,720. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$75,720. The equipment was depreciated using the straight-line
method based upon an estimated useful life of 6 years and an
estimated residual value of $7,920.
Required:
a.
What was the depreciation expense for the first year?
b.
Assuming the equipment was sold at the end of the second year
for $57,370, determine the gain or loss on sale of the
equipment.
c.
Journalize the entry to record...
Equipment was acquired at the beginning of the year at a cost of $79,560. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$79,560. The equipment was depreciated using the straight-line
method based upon an estimated useful life of 6 years and an
estimated residual value of $7,800.
a. What was the depreciation expense for the first year?
$
b. Assuming the equipment was sold at the end of the second year
for $60,100, determine the gain or loss on sale of the
equipment.
$
c. Journalize the entry to...
Equipment was acquired at the beginning of the year at a cost of $40,000. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$40,000. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of ten years and an estimated residual value of $780. a. What was
the depreciation for the first year?
b. Assuming the equipment was sold at the end of year 2 for
$9,240, determine the gain or loss on the sale of the equipment.
$fill in the blank
c. Journalize the entry...
Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$562,500. The equipment was depreciated using the straight-line
method based on an estimated useful life of 9 years and an
estimated residual value of $40,600. a. What was the
depreciation for the first year? Round your answer to the nearest
cent.
b. Using
the rounded amount from Part a in your computation, determine the
gain(loss) on the sale of the equipment, assuming it was sold at
the...
Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment...
Equipment was acquired at the beginning of the year at a cost of
$35,000. The equipment was depreciated using the A method of
depreciation that provides periodic depreciation expense based on
the declining book value of a fixed asset over its estimated
life.double-declining-balance method based on an estimated useful
life of ten years and an estimated The estimated value of a fixed
asset at the end of its useful life.residual value of $680.
a. What was the The systematic periodic...
Hirsch Company acquired equipment at the beginning of 2017 at a cost of $128,000. The equipment...
Hirsch Company acquired equipment at the beginning of 2017 at a
cost of $128,000. The equipment has a five-year life with no
expected salvage value and is depreciated on a straight-line basis.
At December 31, 2017, Hirsch compiled the following information
related to this equipment:
Expected future cash flows from
use of the equipment
$
109,300
Present value of expected future
cash flows from use of the equipment
95,000
Fair value (selling price less
costs to dispose)
90,910
Assume that...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Develop a Java program that determines the gross pay for an employee. The company pays hourly...
- Discuss the four evolving company orientations. Which orientation is considered most successful and why?
- Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate....
- this should be written in Java- Problem: Min/Max Search by Index Develop a program that, given...
- 2.the stock of Business Adventures sells for $70 a share. Its likely dividend payout and end-of-year...
- Provide TWO specific strategies that an equipment designer could employ to reduce heating of the temperature-sensitive...
- For fatty acid synthesis what would be the substrate if you are making an even number...
ADVERTISEMENT