Question
In: Accounting
Compute Straight Line Depreciation for the Truck: Purchased July 1, $20,000 cost, $2,000 salvage value, 5...
- Compute Straight Line Depreciation for the Truck: Purchased July 1, $20,000 cost, $2,000 salvage value, 5 years useful life
Depreciation Calculation: Depre. Exp. = cost – salvage value* (time in service)
useful life
2018 Depreciation: $20,000-2000*(6/12) = $1,800
5 years
2019 Depreciation:
2020 Depreciation:
2021 Depreciation:
2022 Depreciation:
2023 Depreciation:
- The journal entry to record the Depreciation Expense for Year 1 is:
|
Date |
Accounts |
Debit |
Credit |
|
12/31/18 |
Depreciation Expense - Truck |
$1,800 |
|
|
Accumulated Deprec. - Truck |
$1,800 |
The journal entry to record the Depreciation Expense for Year 2 is:
|
Date |
Accounts |
Debit |
Credit |
|
12/31/19 |
|||
The journal entry to record the Depreciation Expense for Year 3 is:
|
Date |
Accounts |
Debit |
Credit |
|
12/31/20 |
|||
The journal entry to record the Depreciation Expense for Year 4 is:
|
Date |
Accounts |
Debit |
Credit |
|
12/31/21 |
|||
The journal entry to record the Depreciation Expense for Year 5 is:
|
Date |
Accounts |
Debit |
Credit |
|
12/31/22 |
|||
The journal entry to record the Depreciation Expense for the last year is:
|
Date |
Accounts |
Debit |
Credit |
|
12/31/23 |
|||
- Compute Double Declining Depreciation for the Truck: Purchased July 1, $20,000 cost, $2,000 salvage value, 5 years useful life
Double Declining Depreciation Calculation:
Double Declining Rate= _____1_______* (2)
useful life
Depre. Exp. = Beginning of the Year Book Value * (Double Declining Rate) * (time in service)
|
Year |
Beg. Of Year Book Value* |
Depre. Rate * |
Time in Service= |
Depre. Exp. |
Accum. Depre. |
Ending Book Value |
|
(from prior year ending) |
(calculate ¼) |
(use months) |
(compute) |
(add prior Depre. exp.) |
(cost- accum. depre.) |
|
|
a |
b |
c |
a*b*c = d |
e |
(cost-e) = f |
|
|
2018 |
$20,000 |
40% |
(6/12) |
$4,000 |
$4,000 |
$16,000 |
|
2019 |
||||||
|
2020 |
||||||
|
2021 |
||||||
|
2022 |
||||||
|
2023 |
- The journal entry to record the Depreciation Expense for Year 1 is:
|
Date |
Accounts |
Debit |
Credit |
|
12/31/18 |
Depreciation Expense - Truck |
$4,000 |
|
|
Accumulated Deprec. - Truck |
$4,000 |
The journal entry to record the Depreciation Expense for Year 2 is:
|
Date |
Accounts |
Debit |
Credit |
|
12/31/19 |
|||
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Compute Units of Activity Depreciation for the Truck: Purchased July 1, $20,000 cost, $2,000 salvage value,...
Compute Units of Activity Depreciation for the Truck: Purchased
July 1, $20,000 cost, $2,000 salvage value, 5 years useful life,
Estimated usage 100,000 miles
Units of Activity Depreciation Calculation:
Deprec. Cost per Unit Rate= _Cost – Salvage Value
Estimated
Usage
Depre. Exp. = Actual Usage * Deprec.
Cost per Unit Rate
Calculate Units of Activity
Depreciation for each year:
Depre. Cost per Unit Rate= _Cost – Salvage Value = $
Estimated
Usage
2018 Depreciation: 10,000 miles *$0.18= $1,800...
Straight Line Depreciation - Commercial Lawn Mower: Acquired January 1. Purchased for $14,000; salvage value is...
Straight Line Depreciation - Commercial Lawn Mower: Acquired
January 1. Purchased for $14,000; salvage value is $2,000. Useful
life is 5 years. Remember: the asset cannot depreciate below its
salvage value.
A. How is the depreciable cost for the straight-line method
computed?
B. What is the depreciable cost amount?
C. Show your coputation to calculate the annual depreciation
expense.
D. Complete the following Straight Line Depreciation table:
Year
Opening Value
Depreciation Expense
Net Book Value
E. What pattern is clear...
Net cost of new equipment: 1,000,000 life: 10 years, no salvage value, straight line depreciation Forecasted...
Net cost of new equipment: 1,000,000
life: 10 years, no salvage value, straight line depreciation
Forecasted sales volume: 10,000 units per year
variable costs: 60 dollars per unit
fixed: 30 dollars per unit
150,000 per year
Taxes are 40% and cost of capital is 14%
Break even sales are said to be 8,333.3. Sales are expected to
be 10,000 units and project is expected to generate net income of
30,000 per year. You are told it should be accepted.
Revenue...
Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019....
Straight-Line Depreciation Irons Delivery Inc. purchased a new
delivery truck for $42,000 on January 1, 2019. The truck is
expected to have a $2,020 residual value at the end of its 5-year
useful life. Irons uses the straight-line method of depreciation.
Required: Prepare the journal entry to record depreciation expense
for 2019 and 2020. 2019 Dec. 31 Depreciation Expense Accumulated
Depreciation (Record straight-line depreciation expense) 2020 Dec.
31 Depreciation Expense Accumulated Depreciation (Record
straight-line depreciation expense)
Meca Concrete purchased a mixer on January 1, 2016, at a cost of $39,600. Straight-line depreciation...
Meca Concrete purchased a mixer on January 1, 2016, at a cost of
$39,600. Straight-line depreciation for 2016 and 2017 was based on
an estimated eight-year life and $2,400 estimated residual value.
In 2018, Meca revised its estimate and now believes the mixer will
have a total service life of only six years, and that the residual
value will be only $1,400. Compute annual depreciation for 2018 and
2019.
Annual depreciation for 2018 and 2019-
Which of the following depreciation methods does not use salvage value? A. Straight-line B. Unit output...
Which of the following depreciation methods does not use salvage
value?
A.
Straight-line
B.
Unit output
C.
Double declining balance
D.
Some-of-the-year-digits
Which of the following statements is correct?
A.
To have low IRR, low WACC
B.
To have high IRR, low WACC
C.
To have low IRR, high WACC
D.
To have high IRR, high WACC
Which of the following depreciation methods is good for “Income
Reporting”?
A.
Unit output
B.
Some-of-the-year-digits
C.
Double declining balance
D.
Straight-line
Which...
Eckland Manufacturing Co. purchased equipment on January 1, 2016, at a cost of $90,900. Straight-line depreciation...
Eckland Manufacturing Co. purchased equipment on January 1,
2016, at a cost of $90,900. Straight-line depreciation for 2016 and
2017 was based on an estimated eight-year life and $2,100 estimated
residual value. In 2018, Eckland revised its estimate and now
believes the equipment will have a total service life of only six
years, while the residual value remains the same.
Required:
Compute depreciation for 2018 and 2019.
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost...
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits
Methods
A light truck is purchased on January 1 at a cost of $33,840. It
is expected to serve for eight years and have a salvage value of
$4,800. Calculate the depreciation expense for the first and third
years of the truck’s life using the following methods. If required,
round your answers to the nearest cent.
Depreciation Expense
Year 1
Year 3
1. Straight-line
$
$
2. Double-declining-balance
$
$
3. Sum-of-the-years'-digits
$
$
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost...
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits
Methods
A light truck is purchased on January 1 at a cost of $38,730. It
is expected to serve for eight years and have a salvage value of
$5,690. Calculate the depreciation expense for the first and third
years of the truck’s life using the following methods. If required,
round your answers to the nearest cent.
Depreciation Expense
Year 1
Year 3
1. Straight-line
$
$
2. Double-declining-balance
$
$
3. Sum-of-the-years'-digits
$
$
On October 1, 2018, Joe Company purchased a truck for $24,000 with a salvage value of...
On
October 1, 2018, Joe Company purchased a truck for $24,000 with a
salvage value of $1,500 after its 5 years useful life. The company
uses the double declining balance depreciation method. Prepare the
depreciation schedule of the truck over its useful life and specify
the amounts of:
DDB Rate
Depreciation Expense of the year 2018
Accumulated depreciation of the year 2019
Book Value at the beginning of the year 2020
Accumulated depreciation of the year 2023
Book Value at...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 21) A company with a polycentric orientation, selling a low-tech product in a less-developed country will...
- 2.1)Explain briefly the following relationships relating to the precipitation over a basin: a. Depth-Area Relationship b....
- Multistep problem that I'm confused on the entire thing: A) The addition of 5E-3 total moles...
- What are interjurisdictional externalities? Identify the problems created for a federal system by interjurisdictional externalities.
- Describe Trader Joe's key business functions (excluding "logistics") and the functional strategies as they relate to...
- At week 24 of a project to shoot a television commercial what should the expenditures be?...
- Explain whether acid can catalyze each of the following reactions; i.e., whether the reaction is faster...
ADVERTISEMENT