Question

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On January 7, 2017, the machine blade cracked and it was replaced with a new one costing $10 4 chased for cash (the old blade was scrapped). The new blade had an estimated residual value and an estimated life of five years and would continue to be depreciated using the straight-line During 2017, it was determined that the useful life on the metal housing should be increased to a ttu 20 years instead of 15 years and that the residual value should be increased to $8,600. Required 1. Prepare the entry to record the purchase of the replacement blade. 2. Calculate the total depreciation expense to be recorded on Machine #527 for 2017. of $i Problem 9-13A Depreclation and impairment losses L01,2,3,5 CHECK FIGURE: 2. Total assets $271,920 Safety-First Company completed all of its October 31, 2017, adjustments in preparation for preparing its financial statements, which resulted in the following trial balance. 11.220 19.800 79,200 37,400 20,900 880 136,400 11,000 Accounts payable. Allowance for doubtful accounts Cash Expenses, including cost of goods sold Furniture. Land.... Merchandise inventory Note payable Sales Tarifa Shama, capital Unearned revenues 50.600 35,200 85,800 404,200 62,480 7.920 Other information: All accounts have normal balances. 1. 2. $26,400 of the note payable balance is due by October 31, 2018 final task in the year-end process was to assess the assets for impairment, which resulted in the fol- lowing schedule. Building Equipment Furniture.. $136,400 105,600 28,600 15,400

Answer 1

Answer

Income Statement Service Revenue Expenses including COGS Impairment Loss Total Expense Net Income 904,200 761,200 38,500 799,700 104,500 Statement of owner's equity owner's Capital, Beginning Add: Net Income Less: Withdrawals owner's Capital, Ending 62,480 104,500 0 166,980 Balance Sheet Assets Cash Accounts Receivable Inventory Current Assets Land Buildings Accumulated Depreciation-Buildings Furniture Accumulated Depreciation-Furniture Accumulated Impairment loss-Furniture Equipment Accumulated Depreciation-Equipment Accumulated Impairment loss-Equipment Property Plant & Equipment (Net) Total Assets $11,000 18,920 35,200 65,120 105,600 136,400 (79,200) (14,300) 90,200 (37,400) (24,200) 206,800 271,920 Note Payable Unearned Rent Current Liabilities Note Payable Owner's Equity: Owners, Capital Total Liabilities & owner's Equity 11,220 26,400 7,920 45,540 59,400 166,980 271,920