WORKING NOTES: 1 | |||
CALCULATION OF THE DEPRECIATION AS PER STRAIGHT LINE METHOD | |||
Purchase Cost of Equipment | $ 1,42,430 | ||
Less: Salvage Value | $ 7,550 | ||
Net Value for Depreciation | $ 1,34,880 | ||
Usefule life of the Assets | 16 years | ||
Depreciation per year = Value for Depreciation / 16 years = | $ 8,430 | ||
Total Depreciation Per year = | $ 8,430 | ||
WORKING NOTES: 2 | |||
CALCULATION OF BOOK VALUE AS ON 01ST APRIL OF 6TH YEAR AND GAIN OR LOSS ON SALE | |||
Purchase price of Equipment | $ 1,42,430 | ||
Less: Depreciation for 5 years | $ 42,150 | ||
Less: Depreciation for 3 months ($ 8,430 *3 /12 month) | $ 2,108 | ||
Book Value | $ 98,172 | ||
Less : Sales Price | $ 93,142 | ||
Loss on Sold | $ 5,030 | ||
SOLUTION : A | CALCULATION OF BOOK VALUE OF EQUIPMENT AT THE END OF 5TH YEAR | ||
Purchase cost of Equipment | $ 1,42,430 | ||
Less: Depreciation for 5 years = $ 8,430 X 5 years = | $ 42,150 | ||
Book Value = | $ 1,00,280 | ||
SOLUTION : B | |||
Journal Entries | |||
Date | Account Title and explanation | Debit | Credit |
Record the depreciation as on April, 01 | |||
Apr, 01 | Depreciation | $ 2,108.00 | |
Accumulated Depreciation | $ 2,108 | ||
Record the sale transaction as on April, 01 | |||
Apr, 01 | Cash | $ 93,142 | |
Accumulated Deprecaition - Equipment | $ 44,258 | ||
Loss on sale of Equipment | $ 5,030 | ||
Equipment | $ 1,42,430 | ||
х Instructions Equipment acquired on January 8 at a cost of $142,430 has an estimated useful...
Equipment acquired on January 8 at a cost of $100,870, has an estimated useful life of 12 years, has an estimated residual value of $9,550, and is depreciated by the straight-line method. A. What was the book value of the equipment at December 31 the end of the fourth year? B. Assuming that the equipment was sold on April 1 of the fifth year for $61,657, journalize the entries to record (1) depreciation for the three months until the sale...
Instructions Equipment acquired on January 8 at a cost of $100,870, has an estimated useful life of 12 years, has an estimated tesichual value of $9.550, and is depreciated by the straightline method A. What was the book value of the equipment at December 31 the end of the fourth year? B. Assuming that the equipment was soid on April 1 of the fith year for $61,657, journalize the entries to record (1) depreciation for the three months until the...
Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000, and is depreciated by the straight-line method. A. What was the book value of the equipment at December 31 the end of the fourth year? B. Assuming that the equipment was sold on April 1 of the fifth year for $125,000, journalize the entries to record (1) depreciation for the three months until the sale...
Equipment acquired on January 8 at a cost of $100.870, has an estimated useful life of 12 years, has an estimated residual value of $9,550, and is depreciated by the straight line method A What was the book value of the equipment at December 31 the end of the fourth year? B. Assuming that the equipment was sold on April 1 of the fifth year for 561,657 journalize the entries to record (1) depreciation for the three months until the...
New lithographic equipment, acquired at a cost of $905,600 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $101,880. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on March 4, the equipment...
New lithographic equipment, acquired at a cost of $905,600 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $101,880. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on March 4, the equipment...
PLEASE HELP! THIS INFORMATION IS TOGETHER PLEASE READ.
New lithographic equipment, acquired at a cost of $905,600 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $101,880. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of...
1.a New lithographic equipment, acquired at a cost of $843,200 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $94,860. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on March 4, the...
Equipment was acquired at the beginning of the year at a cost of $78,660. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,920. Required: (a) What was the depreciation expense for the first year? (b) Assuming the equipment was sold at the end of the second year for $59,486, determine the gain or loss on sale of the equipment. (c) Journalize the entry to record...
New lithographic equipment, acquired at a cost of $300 000 on March 1 at the beginning data year ha d e ve year and an inter v alue of 300.000 The manag e d normation regarding the chiedolaemative methods on the amount of depreciation expense each year In the list week of the theat, on March 4, the equipment was sold for $135,000 Required: 1 Determine the annuwdepreciation expense for each of the estimated five years of use the accumulated...