Question
In: Accounting
Equipment acquired on January 6,2013, at a cost of 405,115, has an estimated useful life of...
Equipment acquired on January 6,2013, at a cost of 405,115, has an
estimated useful life of 16 years and an estimated residual value
of 61,595.
Required:
A). What was the annual amount of depreciation for the years
2013,2014,and 2015 using the straight line method of
depreciation?
B). What was the book value of the equipment on January 1,
2016
C). Assuming that the equipment was sold on January 3,2016 for
$325,545 journalize the entry to record the sale. Refer to the
chart of accounts for exact wording
D). Assuming that the equipment had been sold on January
3,2016 for $353,980 instead of 325,545, journalize the entry to
record the sale
Solutions
Expert Solution
a) Straight line depreciation = (Original cost-salvage value)/Useful life
= (405115-61595)/16
Straight line depreciation = 21470 per year
2013 dep = 21470
2014 dep = 21470
2015 dep = 21470
b) Book value on january 1, 2016 = 405115-(21470*3) = 340705
c) Journal entry :
| Date | accounts & explanation | debit | credit |
| Jan 3,2016 | Cash | 325545 | |
| Accumlated depreciation | 64410 | ||
| Loss on sale of equipment | 15160 | ||
| Equipment | 405115 | ||
| (TO record sale of equipment) |
d) ) Journal entry :
| Date | accounts & explanation | debit | credit |
| Jan 3,2016 | Cash | 353980 | |
| Accumlated depreciation | 64410 | ||
| Gain on sale of equipment | 13275 | ||
| Equipment | 405115 | ||
| (TO record sale of equipment) |
ekkarill92 answered 1 year agoRelated Solutions
Equipment acquired on January 6 at a cost of $335,190, has an estimated useful life of...
Equipment acquired on January 6 at a cost of $335,190, has an
estimated useful life of 13 years and an estimated residual value
of $68,690.
Required:
a. What was the annual amount of depreciation for Years 1-3
using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1 of
Year 3?
c. Assuming that the equipment was sold on January 3 of Year 4
for $256,655, journalize the entry to record the sale....
Equipment acquired on January 6 at a cost of $335,190, has an estimated useful life of...
Equipment acquired on January 6 at a cost of $335,190, has an
estimated useful life of 13 years and an estimated residual value
of $68,690. A. What was the annual amount of depreciation for the
Years 1-3 using the straight-line method of depreciation? B. What
was the book value of the equipment on January 1 of Year 4? C.
Assuming that the equipment was sold on January 3 of Year 4 for
$256,655, journalize the entry to record the sale....
Equipment acquired on January 8 at a cost of $101,300 has an estimated useful life of...
Equipment acquired on January 8 at a cost of $101,300 has an
estimated useful life of 13 years, has an estimated residual value
of $9,000, and is depreciated by the straight-line method.
a. What was the book value of the equipment at
December 31 the end of the fourth year?
$
b. Assume that the equipment was sold on April
1 of the fifth year for $64,700.
1. Journalize the entry to record depreciation
for the three months until the...
Equipment acquired on January 8 at a cost of $101,130 has an estimated useful life of...
Equipment acquired on January 8 at a cost of $101,130 has an
estimated useful life of 13 years, has an estimated residual value
of $10,000, and is depreciated by the straight-line method.
a. What was the book value of the equipment at
December 31 the end of the fourth year?
$
b. Assume that the equipment was sold on April
1 of the fifth year for $65,197.
1. Journalize the entry to record depreciation
for the three months until the...
Equipment acquired on January 8 at a cost of $144,930 has an estimated useful life of...
Equipment acquired on January 8 at a cost of $144,930 has an
estimated useful life of 14 years, has an estimated residual value
of $8,850, and is depreciated by the straight-line method.
a.
What was the book value of the equipment at December 31 the end
of the fifth year?
b.
Assuming that the equipment was sold on April 1 of the sixth
year for $88,570, journalize the entries to record (1) depreciation
for the three months until the sale...
Equipment acquired on January 5 at a cost of $151,710, has an estimated useful life of...
Equipment acquired on January 5 at a cost of $151,710, has an
estimated useful life of 16 years, has an estimated residual value
of $9,950, and is depreciated by the straight-line method. a. What
was the book value of the equipment at December 31 the end of the
fourth year? $ b. Assuming that the equipment was sold on April 1
of the fifth year for 107,900. 1. Journalize the entry to record
depreciation for the three months until the...
Equipment acquired on January 8 at a cost of $212,000 has an estimated useful life of...
Equipment acquired on January 8 at a cost of $212,000 has an
estimated useful life of 15 years, has an estimated residual value
of $14,000, and is depreciated by the straight-line method.
a. What was the book value of the equipment at
December 31 the end of the fifth year?
Assume that the equipment was sold on April 1 of the sixth year
for $105,800.
1. Journalize the entry to record depreciation
for the three months until the sale date....
Equipment acquired on January 4, 2013, at a cost of $140,000, has an estimated useful life...
Equipment acquired on January 4, 2013, at a cost of $140,000,
has an estimated useful life of 16 years, has an estimated residual
value of $8,000, and is depreciated by the straight-line
method.
Blank 1: What is the book value of the equipment at December 31,
2016, the end of the year? (Hint: pay close attention to the
dates.)
Blank 2: Assume that the equipment was sold on July 1, 2017, for
$96,700. Enter the amount of any gain or...
QUESTION 1 An equipment was acquired at a cost of RM300,000. Its estimated useful life is...
QUESTION 1
An equipment was acquired at a cost of RM300,000. Its estimated
useful life is five years. It is expected that the salvage value
for the equipment is RM50,000. Using the sum of year digit method,
calculate and prepare the depreciation expenses and schedule for
the five years.
QUESTION 1 An equipment was acquired at a cost of RM300,000. Its estimated useful life is...
QUESTION 1
An equipment was acquired at a cost of RM300,000. Its estimated
useful life is five years. It is expected that the salvage value
for the equipment is RM50,000. Using the sum of year digit method,
calculate and prepare the depreciation expenses and schedule for
the five years.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Please type, I will rate you well. Thank you. In Linux: Identify three commands that use...
- If a country such as Malaysia scores much higher than the United States on Power Distance...
- Debby’s Dance Studios is considering the purchase of new sound equipment that will enhance the popularity...
- Cooley Landscaping needs to borrow $32,000 for a new front-end dirt loader. The bank is willing...
- .You own a bond that pays $120 in annual interest with a $1,000 par value. It...
- Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He...
- Exercise 1. Rectangle, Circle and Square Write three Python classes named Rectangle constructed by a length...
ADVERTISEMENT