You purchased a building, equipment and a truck for $700,000 cash. The building has an | |||||||||
appraisal value of $400,000, the equipment $300,000 and a truck appraised at $100,000 | |||||||||
Determine the cost to be assigned to each asset and prepare the journal entry to make | |||||||||
the purchase. | |||||||||
JOURNAL ENTRY | |||||||||
The building has a 20 year life expectancy and a $25,000 salvage value. It will be | |||||||||
depreciated using the straight-line method. Assume at the end of the 8th year | |||||||||
the building is sold for $150,000 cash | |||||||||
What is the journal entry to report the sale of the building. | |||||||||
Journal Entry: you will probably have extra lines. | |||||||||
You purchased a building, equipment and a truck for $700,000
cash. The building has a appraisal value of $400,000, the equipment
$300,000 and a truck appraised at $100,000 Determine the cost to be assigned to each asset and prepare the journal entry to make the purchase. |
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Appraised value | Weights | $700,000 x weights | |
Building | $ 400,000.00 | 50.00% | $ 350,000.00 |
Equipment | $ 300,000.00 | 37.50% | $ 262,500.00 |
Truck | $ 100,000.00 | 12.50% | $ 87,500.00 |
Total | $ 800,000.00 | 100% | $ 700,000.00 |
Journal entry | |||
General Journal | Debit | Credit | |
Building | $ 350,000.00 | ||
Equipment | $ 262,500.00 | ||
Truck | $ 87,500.00 | ||
Cash | $ 700,000.00 | ||
The building has a 20 year life expectancy and a $25,000
salvage value. It will be depreciated using the straight-line method. Assume at the end of the 8th year the building is sold for $150,000 cash. What is the journal entry to report the sale of the building. |
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General Journal | Debit | Credit | |
Cash | $ 150,000.00 | ||
Accumulated Depreciation *(16250 x 8 years | $ 130,000.00 | ||
Loss on sale of building | $ 70,000.00 | ||
Building | $ 350,000.00 | ||
*Depreciation Expenses ( $350,000 - $25,000)/20 years | $ 16,250.00 |
You purchased a building, equipment and a truck for $700,000 cash. The building has an appraisal...
You purchased a building, equipment and a truck for $700,000 cash. The building has an appraisal value of $400,000, the equipment $300,000 and a truck appraised at $100,000 Determine the cost to be assigned to each asset and prepare the journal entry to make the purchase. JOURNAL ENTRY The building has a 20 year life expectancy and a $25,000 salvage value. It will be depreciated using the straight-line method. Assume at the end of the 8th year the building is...
You purchased a building, equipment and a truck for $700,000 cash. The building has an appraisal value of $400,000, the equipment $300,000 and a truck appraised at $100,000 Determine the cost to be assigned to each asset and prepare the journal entry to make the purchase. (I only need help with the table below, I attached the info above in case you need it) The equipment has a salvage value of $10,000, life expectancy of 5 years. Calculate depeciation for...
Building is 350,000, Equipment is 262,500, Truck, 87,500 and cash is 700,000 The equipment has a salvage value of $10,000, life expectancy of 5 years. Calculate depeciation for all years necessary using the double declining balace. What is the book value at the beginning of year 6? Depreciation Book-Value Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 It is planned that the delivery truck will be driven 200,000miles during its life time of 5 years. Mileage...
When calculating the depreciation for the truck, there is a $7,500 salvage value. You will need to depreciate at 40 cents per mile. You purchased a building, equipment and a truck for $700,000 cash. The building has an appraisal value of $400,000, the equipment $300,000 and a truck appraised at $100,000 It is planned that the delivery truck will be driven 200,000miles during its life time of 5 years. Mileage is as follows: Year 1: 65,000 miles, Year 2: 79,500...
On January 1, 2013, Powell Company purchased a building and equipment that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value Equipment, 15-year estimated useful life, $600,000 cost, no salvage value The building has been depreciated under the straight-line method through 2017. In 2018, Powell decided to change the total useful life of the building to 30 years. The equipment is depreciated using the straight-line method, but in 2018, the...
1.We purchased a building with a market value of $150,000 for $125,000 cash. The seller paid $50,000 when they originally purchased the building. What amount is used when we record the purchase of the building? $25,000 $50,000 $125,000 $150,000 2.On July 1, 2017, we purchased a truck for $60,000. The truck has a useful life of 5 years and a residual value of $5,000. The truck is depreciated using the straight-line method. What is the depreciation expense for 2017? $12,000...
E10.6 (LO 1, 3) are as follows 1. Belanna Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $700,000. At the time of purchase, Torres's assets had the following book and appraisal values. (Correction of Improper Cost Entries) Plant acquisitions for selected companies Book Values Appraisal Values less Land $200,000 $150,000 350,000 Buildings Equipment 250,000 300,000 300,000 To be conservative, the company decided to take the lower of the two values...
QUESTION 6 A manufacturing company has purchased three assets: Item Lathe Truck Building Initial cost $43,000 $25,000 $900,000 Book life 12 years 200,000 miles 50 years MACRS class 7 years 5 years 39 years Salvage value $3,000 $2,000 $100,000 Book depreciation DDB Unit production (UP) SL The truck was depreciated by the units-of-production method. Usage of the truck was 22,000 miles, 30,000 and 45,000 miles during the first three years, respectively. Calculate the depreciation stated for each asset...
QUESTION 6 A manufacturing company has purchased three assets: Item Lathe Truck Building Initial cost $43,000 $25,000 $900,000 Book life 12 years 200,000 miles 50 years MACRS class 7 years 5 years 39 years Salvage value $3,000 $2,000 $100,000 Book depreciation DDB Unit production (UP) SL The truck was depreciated by the units-of-production method. Usage of the truck was 22,000 miles, 30,000 and 45,000 miles during the first three years, respectively. Calculate the depreciation stated for each asset...
You have purchased a building for $700,000, and you paid cash. Record these activities into the journal entry format. Put Dec, 31, 2021 as the date.