Homework Answers
Question No. 33
Answer is (c) :- credit of $5000 to gain on disposal account.
Calculation of gain on disposal.
Acquisition Cost of equipment. 100000
Less:- accumulated depreciation. 85000
Residual value. 15000
Sale price 20000
Gain on disposal (20000-15000). $5000
Question no. 34
Answer (a) increase wages expense by $48000
As on the end of year accrued wages expenses are charged to wages experience account. As per matching concept.
Question No (35)
Answer (d) $ 700000
Following are calculations
Purchase price of building. $ 900000
Less:- Depreciation for 10 years as per
Straight line method
(900000-100000)/40= 20000 per year
Hence depreciation for 10 years = $20000*10= $ 200000
Book value of building after 10 yrs (900000-200000)= $700000
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2019 Exam 33. Equipment with an estimated residual value at acquisitionof $15,000 was sold on December...
QUESTIONS Equipment purchased at the beginning of the year for $200,000 with a residual value of...
QUESTIONS Equipment purchased at the beginning of the year for $200,000 with a residual value of $20,000 is being depreciated over a 5-year period using the double-declining- balance method. Which of the following statements is correct concerning the financial statements at the end of the year? 1. The book value of the equipment is now $80,000. 2. The equipment account now has a balance of $120.000 3. Depreciation expense for the year is $72,000. 4. The accumulated depreciation account balance...
Question 23 (3 points) Lighting Company sold an old machine on December 31, 2009, for $12,000...
Question 23 (3 points) Lighting Company sold an old machine on December 31, 2009, for $12,000 cash. The following data was available when the truck sold: Acquisition cost Estimated residual value at acquisition Accumulated depreciation at 12-31-2009 Kafter adjustment) When this transaction is recorded, it should include a $100,000 8,000 85,000 Page 3 debit of $3,000 to the Loss on Disposal account. debit of $15.000 to the Truck account credit of 57.000 to the Gain on Disposal account credit of...
A partial statement of financial position of Wildhorse Ltd. on December 31, 2019, showed the following...
A partial statement of financial position of Wildhorse Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2019): Buildings Less: accumulated depreciation Equipment Less: accumulated depreciation $326,000 126,000 $200,000 $125,000 45,000 80,000 Wildhorse uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Wildhorse applies IFRS and...
2. On January 2, 2019, Kornis Corporation acquired equipment for $300,000. The estimated life of the...
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Also the journal Entry to Eliminate depreciation for equipment and adjust its fair value A partial...
Also the journal Entry to Eliminate
depreciation for equipment and adjust its fair value
A partial statement of financial position of Blossom Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2019): Buildings Less: accumulated depreciation Equipment Less: accumulated depreciation $280,000 80,000 $200,000 $125,000 45,000 80,000 Blossom uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its...
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Bailand Company purchased a building for $366,000 that had an estimated residual value of $16,000 and...
Bailand Company purchased a building for $366,000 that had an estimated residual value of $16,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fifth year (before it records depreciation expense for the year), the following independent situations occur: 1. Bailand estimates that the asset has 8 years' life remaining (for a total of 12 years). 2. Bailand changes to the sum-of-the-years'-digits method. 3....
Exercise 9-08 On July 1, 2019, Cullumber Company purchased new equipment for $85,000. Its estimated useful l...
Exercise 9-08
On July 1, 2019, Cullumber Company purchased new equipment for
$85,000. Its estimated useful life was 5 years with a $12,000
salvage value. On December 31, 2022, the company estimated that the
equipment’s remaining useful life was 10 years, with a revised
salvage value of $5,000.
Prepare the journal entry to record depreciation on December
31, 2019. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no
entry is required, select "No...
Prepare general journal entries on December 31 to record the following unrelated year-end adjustments. a. Estimated...
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On July 1, 2019, Oriole Company purchased new equipment for $80,000. Its estimated useful life was...
On July 1, 2019, Oriole Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $8,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Your answer is correct. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required,...
QUESTIONS Equipment purchased at the beginning of the year for $200,000 with a residual value of $20,000 is being depreciated over a 5-year period using the double-declining- balance method. Which of the following statements is correct concerning the financial statements at the end of the year? 1. The book value of the equipment is now $80,000. 2. The equipment account now has a balance of $120.000 3. Depreciation expense for the year is $72,000. 4. The accumulated depreciation account balance...
Question 23 (3 points) Lighting Company sold an old machine on December 31, 2009, for $12,000 cash. The following data was available when the truck sold: Acquisition cost Estimated residual value at acquisition Accumulated depreciation at 12-31-2009 Kafter adjustment) When this transaction is recorded, it should include a $100,000 8,000 85,000 Page 3 debit of $3,000 to the Loss on Disposal account. debit of $15.000 to the Truck account credit of 57.000 to the Gain on Disposal account credit of...
A partial statement of financial position of Wildhorse Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2019): Buildings Less: accumulated depreciation Equipment Less: accumulated depreciation $326,000 126,000 $200,000 $125,000 45,000 80,000 Wildhorse uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Wildhorse applies IFRS and...
Also the journal Entry to Eliminate
depreciation for equipment and adjust its fair value
A partial statement of financial position of Blossom Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2019): Buildings Less: accumulated depreciation Equipment Less: accumulated depreciation $280,000 80,000 $200,000 $125,000 45,000 80,000 Blossom uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its...
A manufacturing company's weekly payroll is $80,000 for a 5-day work week beginning each Monday and ending each Friday. The last time salaries and wages were recorded was Friday, December 26. What adjustment is needed on December 31, the last day of the company's fiscal period? a. No adjustment is necessary since the next payday will not occur until the following year. Ob. Decrease cash by $48,000. c. Increase wages expense by $48,000. Od. Decrease wages payable by $48,000. Klinc...
Bailand Company purchased a building for $366,000 that had an estimated residual value of $16,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fifth year (before it records depreciation expense for the year), the following independent situations occur: 1. Bailand estimates that the asset has 8 years' life remaining (for a total of 12 years). 2. Bailand changes to the sum-of-the-years'-digits method. 3....
Exercise 9-08
On July 1, 2019, Cullumber Company purchased new equipment for
$85,000. Its estimated useful life was 5 years with a $12,000
salvage value. On December 31, 2022, the company estimated that the
equipment’s remaining useful life was 10 years, with a revised
salvage value of $5,000.
Prepare the journal entry to record depreciation on December
31, 2019. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no
entry is required, select "No...
On July 1, 2019, Oriole Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $8,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Your answer is correct. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required,...
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