Question

Check The property, plant, and equipment section of the Jasper Company's December 31, 2020, balance sheet contained the following: $116,000 Property, plant, and equipment: Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total property, plant, and equipment $ 936,000 (180,00) 163,000 756,000 ? The land and building were purchased at the beginning of 2016. Straight-line depreciation is used and a residual value of $36.000 for the building is anticipated The equipment is comprised of the following three machines Life (in Years) Machine 101 102 103 Cost $53,300 85,000 24,200 Date Acquired 1/1/2018 6/30/2019 9/1/2020 Residual Value $6,600 7,600 2.600 The straight-line method is used to determine depreciation on the equipment. On March 31, 2021. Machine 102 was sold for $59.000 Early in 2021, the useful life of machine 101 was revised to five years in total, and the residual value was revised to zero Required:

Answer 1

1. Accumulated depreciation on equipment at December 31, 2020 is $33,300 Machine Depreciable Cart (rost - Residud Annal. Depreciation passage of time from date acquired Accumulated Depreciation 6'll date 12/ sil2020 blue 101 47200 5900 3 Years 17,700 77 400 1.5 Years 12.900 103 21600 27oo 4 months 2700 Total 33,300 Depreciation 2150 - To Accumulated Deprecation 2150 (Being Depreciation for 3 months for equipment the (8600x3) $2,150 is transferred to accumulated Depreciation Ac). Ics Scanned with CamScanner

2 Chain Con Los on sale of machine co2. is $10,950 8 soos 12,900) sale Cost of machine 102 - Depreciation upto 12/31/2020 Depreciation from 111/2001 to 3/3112021 Net value. las sale price ( L 2150) 69,950 59,000 Loss on (6.a) sale. 10,950 Journal entry Debit Credit Cash. 59,000 15050 Accomolated Depreciation (12900 +2150) Loss on sale 85,000 Machine 102 at a loss of $10950 is recognised) ( Machine co2 sold in books. Scanned with CamScanner

5. Depreciation on Building ,soon Buildire depreciated for years & .l2016 to 1273) 2012 for each year Depreciation is a reciation is a 30,000 150000 So, for Building for year 2021,7 Depreciation a $30,000 Depreciation for Remaining equipment Equipment useful life. Annual Depreciation - 2021 101 Depreciable cat 36,100 సారం (53866 - 17,760) 3,00 21600 (24200 -2 606-900) 103 1805 2700 $20750 Already 3 years has used the machine col. Now the useful life is estimated as 5 Years instead of initial 8 years. so Remaining useful life is 35-3] = Years Scanned with CamScanner

Journal Entry Debit credib Dec. 3). 2021 Depreciation 39,000 Accumulated Depreciation on Building - (Being Depreciation for Building for year 2021 is passed to accumulated Deprecates) Dec 31 2021 Depreciation Accumulated depreciation on Machinery 20750 - 20750 (Being Depreciation for reachinery consists of machine 101, 103 is passed) Scanned with CamScanner