Solution:
(1) Journal Entries: (Amounts in $)
Date |
Particulars |
Debit |
Credit |
Jan 07 2020 |
Loss on Sale of Asset (Old Blade) A/c Dr. Cash A/c Dr. To Machine #5027 ( Old Blade) A/c (Being old blade scrapped) |
8,520 1,400 |
9,920 |
Jan, 07 2020 |
Machine #5027 (New Blade) A/c Dr. To Cash A/c (Being new blade of Machine #5027 purchased) |
13,000 |
13,000 |
Dec. 31, 2020 |
Profit & Loss A/c Dr. To Loss on Sale of the asset (Old Blade) A/c (Being loss on the sale of asset transferred to Profit & Loss A/c) |
8,520 |
8,520 |
(2) Computation of Depreciation for the Year 2020:
Depreciation expense for the year is $ 10,052.
hello? can anyone help a brother out? still stuck!:( HELP Help Save & Exit Sub Pete's...
Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027 Machine #5027 Depreciation Method* Date of purchase Jan. 12/18 Jan. 12/18 Jan. 12/18 Component Single metal housing Motor Blade SL Est. Residual Est. Life $7,000 15 yrs 2,000 10 yrs 1,2005 yrs Cost $ 46,000 32,000 11,400 $ 89,400 DDB SL *SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one...
Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027 Machine #5027 Depreciation Method Component Single metal housing Motor Blade Date of purchase Jan. 12/18 Jan. 12/18 Jan. 12/18 Est. Residual Est. Life $6,000 15 yrs 6,000 10 yrs 1,400 5 yrs Cost $ 60,000 39,000 15,600 $114,600 DDB "SL - Straight-line, DDB - Double-declining balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing...
Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2009, for $114,000. The PPE Sub ledger shows the following information regarding the boat: Fishing Boat - 22 Foot With Inboard Motor: Date of Component Deprec. Cost Est. Purchase Method Fibreglass body Apr. 9/09 SL $ 42,000 $9,000 15 yr Motor Apr. 9/09 SL 72,000 10 yr Residual Est.Life $ 114,000 On June 27, 2017, $78,000 cash was paid for a new...
Vita Water purchased a used machine for $117,500 on January 2, 2020. It was repaired the next day at a cost of $5,250 and installed on a new platform that cost $1,650. The company predicted that the machine would be used for six years and would then have a $14,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year's depreciation was recorded on December 31, 2020. On September 30, 2025,...
Vita Water purchased a used machine for $117,500 on January 2, 2020. It was repaired the next day at a cost of $5,250 and installed on a new platform that cost $1,650. The company predicted that the machine would be used for six years and would then have a $14,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year's depreciation was recorded on December 31, 2020. On September 30, 2025,...
Vita Water purchased a used machine for $122,300 on January 2, 2020. It was repaired the next day at a cost of $10,038 and installed on a new platform that cost $1.662. The company predicted that the machine would be used for six years and would then have a $24.320 residual value. Depreciation was to be charged on a straight line basis to the nearest whole month. A full year's depreciation was recorded on December 31, 2020. On September 30,...
On January 2, 2020. Direct Shoes Inc. disposed of a machine that cost $94,000 and had been depreciated $50,250. Present the journal entries to record the disposal under each of the following unrelated assumptions: a. The machine was sold for $42,500 cash. View transaction list Journal entry worksheet Record the sale of machine. Note: Enter debits before credits. General Journal Debit Credit Date January 02, 2020 Record entry Clear entry View general journal b. The machine was traded in on...
Need help with journal entry.
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original Cost $36,000 72,200 Residual Value $ 4,300 5,000 Estimated Life 5 years 15 years Accumulated Depreciation (straight-line) $25,360 (4 years) 53,760 (12 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $11,000 cash. b. Machine B: On January 1, this machine...
Diaz Company owns a machine that cost $126,300 and has accumulated depreciation of $93,900. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. 1. The machine needed extensive repairs and was not worth repairing Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $16,100 cash. 3. Diaz sold the machine for $32,400 cash. 4. Diaz sold the machine for $41,500 cash. View transaction list Journal entry...
Diaz Company owns a milling machine that cost $125,900 and has accumulated depreciation of $91,300. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations. 1. The machine needed extensive repairs, and it was not worth repairing Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $15,700 cash. 3. Diaz sold the machine for $34,600 cash. 4. Diaz sold the machine for $40,600...