Question
In: Accounting
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information
[The following information applies to the questions
displayed below.]
On January 1, 2021, the Allegheny Corporation purchased equipment
for $127,000. The estimated service life of the equipment is 10
years and the estimated residual value is $6,000. The equipment is
expected to produce 224,000 units during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the
following methods.
2. One hundred fifty percent declining balance. (Round final answers to the nearest whole dollar amount.)
Solutions
Expert Solution
| WORKING NOTES: | |||||
| CALCULATION OF THE DEPRECIATION AS PER SUM OF DOUBLE DECLINE METHOD | |||||
| Purchase Cost of Machine | $ 1,27,000 | ||||
| Useful Life = | 10 years | ||||
| Depreciation per year = | $ 12,700 | ||||
| (Purchase price / Useful life) | |||||
| CALCULATION OF THE RATE OF DEPRECIATION | |||||
| Rate of Depreciation = Depreciation per year as above / Purchase price of machiene | |||||
| Rate of Depreciation = | $ 12,700 | "/"By | $ 1,27,000 | ||
| Rate of Depreciation = | 0.10 | ||||
| Rate of Depreciation in percentage = | 10% | ||||
| 150% decline deprection rate | 15% | ||||
| SOLUTION : | |||||
| CALCULATION OF DEPRECIATION FOR THE YEAR 2021 AND 2022 | |||||
| Purchase price = | $ 1,27,000 | ||||
| Depreciation for the year 2021 @ 15% = | $ 19,050 | ||||
| Closing balance for the year 2021 | $ 1,07,950 | ||||
| Opening Balance for the year 2022 | $ 1,07,950 | ||||
| Depreciation for the year 2022 @ 15% = | $ 16,193 | ||||
| Closing balance for the year2022 | $ 91,758 | ||||
| ANSWER: | |||||
| Deoreciation for the year 2021 | $ 19,050 | ||||
| Deoreciation for the year 2022 | $ 16,193 | ||||
ekkarill92 answered 1 year agoRelated Solutions
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information [The following information applies to the
questions displayed below.] On January 1, 2021, the general ledger
of ACME Fireworks includes the following account balances: Accounts
Debit Credit Cash $ 26,700 Accounts Receivable 49,400 Allowance for
Uncollectible Accounts $ 5,800 Inventory 21,600 Land 62,000
Equipment 23,000 Accumulated Depreciation 3,100 Accounts Payable
30,100 Notes Payable (6%, due April 1, 2022) 66,000 Common Stock
51,000 Retained Earnings 26,700 Totals $ 182,700 $ 182,700 During
January 2021, the following transactions occur: January...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information
[The following information applies to the questions
displayed below.]
On January 1, 2021, the general ledger of ACME Fireworks
includes the following account balances:
Accounts
Debit
Credit
Cash
$
25,300
Accounts Receivable
46,600
Allowance for Uncollectible Accounts
$
4,400
Inventory
20,200
Land
48,000
Equipment
16,500
Accumulated Depreciation
1,700
Accounts Payable
28,700
Notes Payable (6%, due April 1, 2022)
52,000
Common Stock
37,000
Retained Earnings
32,800
Totals
$
156,600
$
156,600
During January 2021, the following transactions occur:
January...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information
[The following information applies to the questions
displayed below.]
On January 1, 2021, the general ledger of 3D Family Fireworks
includes the following account balances:
Accounts
Debit
Credit
Cash
$
23,900
Accounts Receivable
13,600
Allowance for Uncollectible Accounts
$
1,400
Supplies
2,500
Notes Receivable (6%, due in 2 years)
20,000
Land
77,000
Accounts Payable
7,200
Common Stock
96,000
Retained Earnings
32,400
Totals
$
137,000
$
137,000
During January 2021, the following transactions occur:
January
2
Provide services to...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information [The following information applies to the
questions displayed below.] On January 1, 2021, the general ledger
of ACME Fireworks includes the following account balances: Accounts
Debit Credit Cash $ 27,100 Accounts Receivable 50,200 Allowance for
Uncollectible Accounts $ 6,200 Inventory 22,000 Land 66,000
Equipment 25,000 Accumulated Depreciation 3,500 Accounts Payable
30,500 Notes Payable (6%, due April 1, 2022) 70,000 Common Stock
55,000 Retained Earnings 25,100 Totals $ 190,300 $ 190,300
During January 2021, the following transactions occur: January...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information
[The following information applies to the questions
displayed below.]
On January 1, 2021, the Allegheny Corporation purchased equipment
for $127,000. The estimated service life of the equipment is 10
years and the estimated residual value is $6,000. The equipment is
expected to produce 224,000 units during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the
following methods.
3. Assume instead the equipment was purchased
on October 1, 2021. Calculate depreciation for 2021 and 2022...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information [The following information applies to the
questions displayed below.] On January 1, 2021, the general ledger
of ACME Fireworks includes the following account balances: Accounts
Debit Credit Cash $ 27,100 Accounts Receivable 50,200 Allowance for
Uncollectible Accounts $ 6,200 Inventory 22,000 Land 66,000
Equipment 25,000 Accumulated Depreciation 3,500 Accounts Payable
30,500 Notes Payable (6%, due April 1, 2022) 70,000 Common Stock
55,000 Retained Earnings 25,100 Totals $ 190,300 $ 190,300
During January 2021, the following transactions occur: January...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information
[The following information applies to the questions
displayed below.]
On January 1, 2021, the general ledger of 3D Family Fireworks
includes the following account balances:
Accounts
Debit
Credit
Cash
$
23,900
Accounts Receivable
13,600
Allowance for Uncollectible Accounts
$
1,400
Supplies
2,500
Notes Receivable (6%, due in 2 years)
20,000
Land
77,000
Accounts Payable
7,200
Common Stock
96,000
Retained Earnings
32,400
Totals
$
137,000
$
137,000
During January 2021, the following transactions occur:
January
2
Provide services to...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the...
Required information [The following information applies to the
questions displayed below.] On January 1, 2021, the general ledger
of ACME Fireworks includes the following account balances: Accounts
Debit Credit Cash $ 27,100 Accounts Receivable 50,200 Allowance for
Uncollectible Accounts $ 6,200 Inventory 22,000 Land 66,000
Equipment 25,000 Accumulated Depreciation 3,500 Accounts Payable
30,500 Notes Payable (6%, due April 1, 2022) 70,000 Common Stock
55,000 Retained Earnings 25,100 Totals $ 190,300 $ 190,300 During
January 2021, the following transactions occur: January...
Required information [The following information applies to the questions displayed below.] On January 1, when the...
Required information
[The following information applies to the questions
displayed below.]
On January 1, when the market interest rate was 9 percent, Seton
Corporation completed a $260,000, 8 percent bond issue for
$243,312. The bonds pay interest each December 31 and mature in 10
years. Assume Seton Corporation uses the effective-interest method
to amortize the bond discount.
rev: 04_29_2019_QC_CS-166541
Prepare a bond discount amortization schedule for these bonds.
(Do not round intermediate calculations. Round your answers
to the nearest dollar.)
The following information applies to the questions displayed below.] On January 1, 2021, the general ledger...
The following information applies to the questions displayed
below.]
On January 1, 2021, the general ledger of ACME Fireworks
includes the following account balances:
Accounts
Debit
Credit
Cash
$
26,400
Accounts Receivable
48,800
Allowance for Uncollectible Accounts
$
5,500
Inventory
21,300
Land
59,000
Equipment
21,500
Accumulated Depreciation
2,800
Accounts Payable
29,800
Notes Payable (6%, due April 1, 2022)
63,000
Common Stock
48,000
Retained Earnings
27,900
Totals
$
177,000
$
177,000
During January 2021, the following transactions occur:
January
2
Sold...
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