Homework Answers
Annual Depreciation = (362000-68000)/10 = $29,400
Net Book value on December 31, 2019 = 362000 - 29400*5 = $215,000
Depreciation for 2020 = (215000-68000)/1 0 = $14,700
| Account Titles and Explanation | Debit | Credit |
| Depreciation expense | $14,700 | |
| Accumulated Depreciation - Machine | $14,700 |
Add Answer to:
Sweet Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $362,000, and was estimated...
Sweet Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $362,000, and was estimated...
Sweet Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $362,000, and was estimated to have a ten-year useful life and a residual value of $68,000. Straight-line depreciation was recorded each year-end (December 31) to the end of December 31, 2019. On January 1, 2020, Sweet re-evaluated the machinery. It was now believed that the equipment's total life was expected to be 15 years. Prepare the journal entry to record depreciation for 2020. (Credit account titles are automatically...
Crane Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $399,000, and was estimated...
Crane Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $399,000, and was estimated to have a ten-year useful life and a residual value of $44,000. Straight-line depreciation was recorded each year-end (December 31) to the end of December 31, 2019. On January 1, 2020, Crane re-evaluated the machinery. It was now believed that the equipment's total life was expected to be 15 years. Prepare the journal entry to record depreciation for 2020. (Credit account titles are automatically...
Kingbird Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $406,000, and was estimated...
Kingbird Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $406,000, and was estimated to have a ten-year useful life and a residual value of $59,000. Straight-line depreciation was recorded each year-end (December 31) to the end of December 31, 2019. On January 1, 2020, Kingbird re-evaluated the machinery. It was now believed that the equipment’s total life was expected to be 15 years. Prepare the journal entry to record depreciation for 2020. (Credit account titles are automatically...
Machinery purchased for $46,600 by Martinez Corp. on January 1, 2015, was originally estimated to have...
Machinery purchased for $46,600 by Martinez Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $5,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $6,000 at the end of that time. Assume straight-line depreciation and that Martinez Corp. uses IFRS for financial statement purposes. Prepare...
Exercise 11-16 Machinery purchased for $49,400 by Indigo Corp. on January 1, 2015, was originally estimated...
Exercise 11-16
Machinery purchased for $49,400 by Indigo Corp. on January 1,
2015, was originally estimated to have an 8-year useful life with a
residual value of $3,000. Depreciation has been entered for five
years on this basis. In 2020, it is determined that the total
estimated useful life (including 2020) should have been 10 years,
with a residual value of $4,000 at the end of that time. Assume
straight-line depreciation and that Indigo Corp. uses IFRS for
financial statement...
(a) On January 1, 2020, Sustco Ltd. purchased a piece of equipment for $16,000. At the...
(a) On January 1, 2020, Sustco Ltd. purchased a piece of equipment for $16,000. At the time, management determined that the equipment would have a residual value of $3,000 at the end of its five-year life. Sustco has a December 31 year end and uses the straight-line depreciation method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for...
Sandhill Ltd. purchased equipment on January 1, 2015 at a cost of $182,680. The equipment has an estimated useful life...
Sandhill Ltd. purchased equipment on January 1, 2015 at a cost of $182,680. The equipment has an estimated useful life of 10 years and a residual value of $10,720. Sandhill realized that there was a declining demand for the product being produced by the equipment. Given this indicator of possible impairment, management determined that the recoverable amount of the asset on December 31, 2018 was $97,530. The company uses the straight-line method of depreciation. (b) Record the impairment loss, if...
Blue Corporation owns machinery that cost $41,600 when purchased on January 1, 2020. Depreciation has been...
Blue Corporation owns machinery that cost $41,600 when purchased on January 1, 2020. Depreciation has been recorded at a rate of $6,240 per year, resulting in a balance in accumulated depreciation of $12,480 at December 31, 2021. The machinery is sold on September 1, 2022, for $27,060. Prepare journal entry to update depreciation for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the...
On July 1, 2019. Oriole Company purchased new equipment for $80,000. Its estimated useful life was...
On July 1, 2019. Oriole Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $8,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
On July 1, 2019, Sandhill Co, purchased new equipment for $90,000. Its estimated useful life was...
On July 1, 2019, Sandhill Co, purchased new equipment for $90,000. Its estimated useful life was 5 years with a $10,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
Sweet Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $362,000, and was estimated to have a ten-year useful life and a residual value of $68,000. Straight-line depreciation was recorded each year-end (December 31) to the end of December 31, 2019. On January 1, 2020, Sweet re-evaluated the machinery. It was now believed that the equipment's total life was expected to be 15 years. Prepare the journal entry to record depreciation for 2020. (Credit account titles are automatically...
Crane Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $399,000, and was estimated to have a ten-year useful life and a residual value of $44,000. Straight-line depreciation was recorded each year-end (December 31) to the end of December 31, 2019. On January 1, 2020, Crane re-evaluated the machinery. It was now believed that the equipment's total life was expected to be 15 years. Prepare the journal entry to record depreciation for 2020. (Credit account titles are automatically...
Machinery purchased for $46,600 by Martinez Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $5,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $6,000 at the end of that time. Assume straight-line depreciation and that Martinez Corp. uses IFRS for financial statement purposes. Prepare...
Exercise 11-16
Machinery purchased for $49,400 by Indigo Corp. on January 1,
2015, was originally estimated to have an 8-year useful life with a
residual value of $3,000. Depreciation has been entered for five
years on this basis. In 2020, it is determined that the total
estimated useful life (including 2020) should have been 10 years,
with a residual value of $4,000 at the end of that time. Assume
straight-line depreciation and that Indigo Corp. uses IFRS for
financial statement...
(a) On January 1, 2020, Sustco Ltd. purchased a piece of equipment for $16,000. At the time, management determined that the equipment would have a residual value of $3,000 at the end of its five-year life. Sustco has a December 31 year end and uses the straight-line depreciation method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for...
Sandhill Ltd. purchased equipment on January 1, 2015 at a cost of $182,680. The equipment has an estimated useful life of 10 years and a residual value of $10,720. Sandhill realized that there was a declining demand for the product being produced by the equipment. Given this indicator of possible impairment, management determined that the recoverable amount of the asset on December 31, 2018 was $97,530. The company uses the straight-line method of depreciation. (b) Record the impairment loss, if...
Blue Corporation owns machinery that cost $41,600 when purchased on January 1, 2020. Depreciation has been recorded at a rate of $6,240 per year, resulting in a balance in accumulated depreciation of $12,480 at December 31, 2021. The machinery is sold on September 1, 2022, for $27,060. Prepare journal entry to update depreciation for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the...
On July 1, 2019. Oriole Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $8,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
On July 1, 2019, Sandhill Co, purchased new equipment for $90,000. Its estimated useful life was 5 years with a $10,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
Most questions answered within 3 hours.
-
A coach uses a new technique to train gymnasts. Seven
gymnasts were randomly selected and their...
asked 58 minutes ago -
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 2 hours ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 4 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 5 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 6 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 7 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 7 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 7 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 7 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 7 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 7 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 7 hours ago