On March 31st, 2017 Alexander Corporation sold equipment for cash of $25,000. The equipment had been...
On March 31st, 2017 Alexander Corporation sold equipment for cash of $25,000. The equipment had been purchased on June 1st, 2015 for $42,000 and at that time they had estimated a $15,000 residual value at the end of the equipment's 4-year useful life. Alexander Corporation has a December 31st year end, adjusts its records annually, and uses the double declining/diminishing balance method of depreciation for this equipment.
Prepare the appropriate journal entrie(s) to record the disposal
of the equipment on
March 31st, 2017. Please show all calculations to receive full
marks. Round all amounts to the nearest dollar.
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On March 31st, 2017 Alexander Corporation sold equipment for
cash of $25,000. The equipment had been...
On March 31st, 2017 Alexander Corporation sold equipment for cash of $25,000. The equipment had been...
On March 31st, 2017 Alexander Corporation sold equipment for cash of $25,000. The equipment had been purchased on June 1st, 2015 for $42,000 and at that time they had estimated a $15,000 residual value at the end of the equipment's 4-year useful life. Alexander Corporation has a December 31st year end, adjusts its records annually, and uses the double declining/diminishing balance method of depreciation for this equipment. Prepare the appropriate journal entrie(s) to record the disposal of the equipment on...
On March 31st, 2017 Alexander Corporation sold equipment for cash of $25,000. The equipment had been...
On March 31st, 2017 Alexander Corporation sold equipment for cash of $25,000. The equipment had been purchased on June 1st, 2015 for $42,000 and at that time they had estimated a $15,000 residual value at the end of the equipment's 4-year useful life. Alexander Corporation has a December 31st year end, adjusts its records annually, and uses the double declining/diminishing balance method of depreciation for this equipment. Prepare the appropriate journal entrie(s) to record the disposal of the equipment on...
Show transcribed image text Consider the following independent situations for Pronghorn Corporation. Pronghorn applies ASPE. Situation...
Show transcribed image text Consider the following independent situations for Pronghorn Corporation. Pronghorn applies ASPE. Situation 1: Pronghorn purchased equipment in 2010 for $171,600 and estimated a $11,600 residual value at the end of the equipment's 10-year useful life. At December 31, 2016, there was帛112,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2017, the equipment was sold for $42,300 Situation 2: Pronghorn sold a piece of machinery for $9,390 on...
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AP8-15B (Acquisition, change in estimates, depreciation, and disposal) Laurin Limited purchased equipment on October 8, 2017,...
AP8-15B (Acquisition, change in estimates, depreciation, and disposal) Laurin Limited purchased equipment on October 8, 2017, at a cost of $368,000. Laurin's management estimated that the equipment would have a useful life of four years and a residual value of $41,600. At the beginning of 2020, Laurin's management determined that the equipment would be used for three more years (including all of 2020), and at the end of this time the equipment's residual value would be $36,800. The company ended...
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(a) James Company bought equipment for $460,000 on 22 February 20Y1. The machine had an estimated...
(a) James Company bought equipment for $460,000 on 22 February 20Y1. The machine had an estimated residual value of $60,000, and had estimated useful life of 10 years, or had an estimated operation output of 100,000 hours. The year-end date of the company is 31 December. Calculate the depreciation on the equipment in these two years using the following methods. 20Y1 20Y2 (i) Straight-line (using half-year convention) (ii) 200%-declining-balance (using full-year depreciation in the first year) (iii) Units-of-output method (hours...
Florence prepares the company year end accounts on 31st December annually. The following transactions occurred during...
Florence prepares the company year end accounts on 31st December annually. The following transactions occurred during the year 2017: Date of Assets Useful life Disposal Cost (RM) purchase (year) Value (RM) 1 July 2015 Motor Vehicles 10 0 100,500 1 Jan 2015 Equipment 142,000 1 Jan 2015 Labelling Machine 65,000 The company uses: i) straight line method of depreciation for motor vehicles and equipment. ii) reducing balance method for labelling machine with the rate 10% iii) The company implement month...
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $800,000. The residual...
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $800,000. The residual value of the equipment was estimated to be $50,000 at the end of a five year life. The equipment was sold on March 31, 2021, for $170,000. Howarth uses the straight- line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service Required: 1. Prepare the journal entry to record...
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Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $160,000. The residual value of the equipment was estimated to be $10,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $43,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale....
AP8-15B (Acquisition, change in estimates, depreciation, and disposal) Laurin Limited purchased equipment on October 8, 2017, at a cost of $368,000. Laurin's management estimated that the equipment would have a useful life of four years and a residual value of $41,600. At the beginning of 2020, Laurin's management determined that the equipment would be used for three more years (including all of 2020), and at the end of this time the equipment's residual value would be $36,800. The company ended...
(a) James Company bought equipment for $460,000 on 22 February 20Y1. The machine had an estimated residual value of $60,000, and had estimated useful life of 10 years, or had an estimated operation output of 100,000 hours. The year-end date of the company is 31 December. Calculate the depreciation on the equipment in these two years using the following methods. 20Y1 20Y2 (i) Straight-line (using half-year convention) (ii) 200%-declining-balance (using full-year depreciation in the first year) (iii) Units-of-output method (hours...
Florence prepares the company year end accounts on 31st December annually. The following transactions occurred during the year 2017: Date of Assets Useful life Disposal Cost (RM) purchase (year) Value (RM) 1 July 2015 Motor Vehicles 10 0 100,500 1 Jan 2015 Equipment 142,000 1 Jan 2015 Labelling Machine 65,000 The company uses: i) straight line method of depreciation for motor vehicles and equipment. ii) reducing balance method for labelling machine with the rate 10% iii) The company implement month...
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $800,000. The residual value of the equipment was estimated to be $50,000 at the end of a five year life. The equipment was sold on March 31, 2021, for $170,000. Howarth uses the straight- line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service Required: 1. Prepare the journal entry to record...
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