Bill’s Shirt Corp. paid $190,000 for machinery on July 1, 2018. The equipment has an estimated...
Bill’s Shirt Corp. paid $190,000 for machinery on July 1, 2018. The equipment has an estimated useful life of 5 years and a residual value of $10,000.
- Using the straight-line method:
- Prepare the journal entry to record depreciation for 2018. (Remember to consider the company purchased the asset on July 1st.)
- Prepare the journal entry to record depreciation for 2019.
- What amount would appear on the 2018 financial statements regarding:
Depreciate Expense $___________
Accumulated Depreciation $___________
- What amount would appear on the 2019 financial statements regarding:
Depreciate Expense $____________
Accumulated Depreciation $____________
- Compute the book value of the equipment at December 31 (show your computation for each year):
2018 $___________
2019 $___________
Homework Answers
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Bill’s Shirt Corp. paid $190,000 for machinery on
July 1, 2018. The equipment has an
estimated...
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On July 1, 2019, Sandhill Co. purchased new equipment for $90,000. Its estimated useful life was 8 years with a $18,000 salvage value. On January 1, 2022, before making its depreciation entry for 2022, the company estimated the remaining useful life to be 10 years beyond December 31, 2022. The new salvage value is estimated to be $5,000. a.Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do...
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and expected salvage value of $25,000. Straight-line depreciation
is used. On July 1, 2020, economic factors cause the market value
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