Can you also explain how did you get the answer ?
Storage | truck | Patent | |||
Purchase price | 95000 | Purchase price | 38000 | Price | 20000 |
Erection expenses | 5000 | residual value | 8000 | useful life | 5 |
Total price | 100000 | Depreciable value | 30000 | ||
Less:Residual value | 10000 | useful life | 5 | depreciation | 4000 |
Depreciable value | 90000 | ||||
Life of the asset | 10 | Depreciation | 30000/5 = 6000 | ||
Annual depreciation rate | 100%/10 =10% | ||||
Depreciation rate for double declining | 10% x 2 = 20% | ||||
Therefore depreciation(100000*20%) | 20000 | ||||
Book value on jan 1 (100000-20000) | 80000 | ||||
Depreciation for 2019 | |||||
80000 x 20% | 16000 | ||||
64000 | |||||
Date | Particulars | Debit | Credit | |
31-Dec-18 | Amortization expense | 4000 | ||
Depreciation expense | 26000 | |||
Accumulated depreciation-Building | 20000 | |||
Accumulated depreciation-Equipment | 6000 | |||
Accumulated amortization-Patent | 4000 | |||
( being depreciation and amortization charged) | ||||
30-Jun-19 | Depreciation expense | 3000 | (6000 x 6/12) | |
Accumulated depreciation-Equipment | 3000 | |||
( being depreciation charged for 6 months) | ||||
30-Jun-19 | Cash | 33000 | ||
Truck | 29000 | (38000-6000-3000) | ||
Profit on sale | 4000 | |||
(being truck sold) | ||||
31-Dec-19 | Depreciation expense | 16000 | ||
Accumulated depreciation-Building | 16000 | |||
( being depreciation charged) | ||||
31-Dec-19 | Depreciation expense | 4000 | ||
Accumulated amortization-Patent | 4000 | |||
( being amortization charged) | ||||
31-Dec-19 | Accumulated amortization-Patent | 8000 | ||
patent | 8000 | |||
Can you also explain how did you get the answer ? PA9-4 Recording Transactions and Adjustments...
Please help me out and explain how to get the answers. Thank you PA9-4 Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9-2, LO 9-3, LO 9-4, LO 9-5, LO 9-6] The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $95,000 cash...
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. 2018 2 Paid $100,000 cash to purchase storage shed components. 3 Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $8,000. January January 1 Paid $46,000...
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $100,000 cash to purchase storage shed components. January 3 Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $8,000. April 1...
Any help appreciated, Thank you! The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $87,eee cash to purchase storage shed components. January 3 Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value...
How to finish 6,8,9,10,11,12 journal entries? The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $85,000 cash to purchase storage shed components. January 3 Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual...
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $86,000 cash to purchase storage shed components. January 3 Paid $2,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $5,000. April 1 Paid...
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents 2018 January 2 Paid $101,000 cash to purchase storage shed components. January 3 Paid $6,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $9,000. April 1 Paid...
The following transactions and adjusting entries were completed by Gravure Graphics International, a paper-packaging company. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. April January 2, 2016 Paid $96,600 cash to purchase storage shed components. January 3, 2016 Paid $5,400 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $11,000. 1, 2016 Paid $42,400 cash to purchase...
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. 2018 January 2 Paid $95,000 cash to purchase storage shed components. January 3 Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $10,000. April 1 Paid...
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during 2018 and 2019. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. (I JUST NEED HELP WITH #10,11,12 PLEASE...Been stuck for over a hour!!) 2018 January 2 Paid $90,000 cash to purchase storage shed components. January 3 Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life...