May 1 - Purchased office equipment for $30,000, paying $6,000 down and signing a 2-year, 12%...
Homework Answers
| Date | Account titles and explanation | Debit | Credit | ||||||
| 2020 | |||||||||
| Dec 31. | Depreciation expense | (Note:1) | 1800 | ||||||
| Accumulated depreciation | 1800 | ||||||||
| (Depreciation recorded) | |||||||||
| Dec 31. | Interest expense | (Note:2) | 1920 | ||||||
| Interest payable | 1920 | ||||||||
| (Interest accrued on note) | |||||||||
| Note:1 | |||||||||
| Depreciation expense for the year=(Original cost-Salvage value)/Useful life=(30000-3000)/10=27000/10=$ 2700 | |||||||||
| But, Office equipment purchased on May 1 | |||||||||
| Hence,compute depreciation for 8 months(May to Dec) | |||||||||
| Depreciation expense for 8 months=2700*(8/12)=$ 1800 | |||||||||
| Note:2 | |||||||||
| Note payable value=30000-6000=$ 24000 | |||||||||
| Interest expense for 8 months=24000*12%*(8/12)=$ 1920 | |||||||||
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May 1 - Purchased office equipment for $30,000, paying $6,000
down and signing a 2-year, 12%...
*204. A company purchased office equipment for $30,000 and estimated a salvage value of $6,000 at...
*204. A company purchased office equipment for $30,000 and estimated a salvage value of $6,000 at the end of its 8-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is a. 8%. b. 12.5% c. 25.0%. d. 2.5%
*204. A company purchased office equipment for $30,000 and estimated a salvage value of $6,000 at...
*204. A company purchased office equipment for $30,000 and estimated a salvage value of $6,000 at the end of its 8-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is a. 8%. b. 12.5% c. 25.0%. d. 2.5%
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machine 1: cost 76,000 salvage value 6,000 useful life 10 years purchased 7/1/16 machine 2: cost...
machine 1:
cost 76,000
salvage value 6,000
useful life 10 years
purchased 7/1/16
machine 2:
cost 80,000
salvage value 10,000
useful life 8 years
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machine 3:
cost 78,000
salvage value 6,000
useful life 6 years = 24,000 hours
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*204. A company purchased office equipment for $30,000 and estimated a salvage value of $6,000 at the end of its 8-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is a. 8%. b. 12.5% c. 25.0%. d. 2.5%
*204. A company purchased office equipment for $30,000 and estimated a salvage value of $6,000 at the end of its 8-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is a. 8%. b. 12.5% c. 25.0%. d. 2.5%
On August 1, 2020 Noa Corporation purchased spa and beauty equipment for $50,000 paying $20,000 in cash and signing a note for the remainder at a 9% interest rate due in 5 years. The spa and beauty equipment has a useful life of 5 years with a $3,500 salvage value. What amount should Noa Corporation report in its 2020 income statement for depreciation expense? $1.375. $3.100 $3.875 $9,300.
machine 1:
cost 76,000
salvage value 6,000
useful life 10 years
purchased 7/1/16
machine 2:
cost 80,000
salvage value 10,000
useful life 8 years
purchased 1/1/13
machine 3:
cost 78,000
salvage value 6,000
useful life 6 years = 24,000 hours
purchased 1/1/18
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