Tower Company owned a service truck that was purchased at the beginning of 2018 for $43,000....
Tower Company owned a service truck that was purchased at the beginning of 2018 for $43,000. It had an estimated life of three years and an estimated salvage value of $4,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model.
| Assets | = | Equity | Revenue | − | Expense | = | Net Income | Cash Flow | ||||||
| Cash | + | Machine | − | Accumulated Depreciation | = | Common Stock | + | Retained Earnings | ||||||
| 31,000 | + | 43,000 | − | 26,000 | = | 13,000 | + | 35,000 | NA | − | NA | = | NA | NA |
In 2020, Tower Company spent the following amounts on the truck:
| Jan. | 4 | Overhauled the engine for $7,100. The estimated life was extended one additional year, and the salvage value was revised to $3,000. | |
| July | 6 | Obtained oil change and transmission service, $360. | |
| Aug. | 7 | Replaced the fan belt and battery, $460. | |
| Dec. | 31 | Purchased gasoline for the year, $8,600. | |
| 31 | Recognized 2020 depreciation expense. |
Required
- Record the 2020 transactions in a statements model like the preceding one. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected, leave the cell blank. Round your answers to the nearest dollar amount. Enter any decreases to account balances with a minus sign.)
Tower Company owned a service truck that was purchased at the beginning of 2018 for $43,000. It had an estimated life of three years and an estimated salvage value of $4,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model.
| Assets | = | Equity | Revenue | − | Expense | = | Net Income | Cash Flow | ||||||
| Cash | + | Machine | − | Accumulated Depreciation | = | Common Stock | + | Retained Earnings | ||||||
| 31,000 | + | 43,000 | − | 26,000 | = | 13,000 | + | 35,000 | NA | − | NA | = | NA | NA |
In 2020, Tower Company spent the following amounts on the truck:
| Jan. | 4 | Overhauled the engine for $7,100. The estimated life was extended one additional year, and the salvage value was revised to $3,000. | |
| July | 6 | Obtained oil change and transmission service, $360. | |
| Aug. | 7 | Replaced the fan belt and battery, $460. | |
| Dec. | 31 | Purchased gasoline for the year, $8,600. | |
| 31 | Recognized 2020 depreciation expense. |
Required
- Record the 2020 transactions in a statements model like the preceding one. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected, leave the cell blank. Round your answers to the nearest dollar amount. Enter any decreases to account balances with a minus sign.)
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Homework Answers
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Tower Company owned a service truck that was purchased at the
beginning of 2018 for $43,000....
Tower Company owned a service truck that was purchased at the beginning of 2018 for $46.000....
Tower Company owned a service truck that was purchased at the beginning of 2018 for $46.000. It had an estimated life of three years and an estimated salvage value of $4,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model. Assets Revenue Expense Net Income Cash Flow Cash 34,800 Machine 46,800 Equity Retained = Common Stock + Earnings 17,880 35,880 Accumulated Depreciation 28,000 NA NA NA NA In...
can someone help me , most of the answer are incorrect and its not complete ....
can someone help me , most of the answer are incorrect and its
not complete .
thank you
7100 =this number is incorect . it can't be negative or positive.
and the last line its totally incorrect it's not 16450
7100 for machine is incorrect . it can't be result positive or
negative . i tried already . and it's incorrect
accumulated Depreciation 26.000 Machine 0.000 31.000 - - Stock 12.000 + 35,000 NA - In 2020, Tower Company spent...
Sellers Construction Company purchased a compressor for $115,200 cash. It had an estimated useful life of four years and a $9,900 salvage value. At the beginning of the third year of use, the company...
Sellers Construction Company purchased a compressor for $115,200 cash. It had an estimated useful life of four years and a $9,900 salvage value. At the beginning of the third year of use, the company spent an additional $6,130 related to the equipment. The company’s financial condition just prior to this expenditure is shown in the following statements model: Assets = Equity Rev. − Exp. = Net Inc. Cash Flow Cash + Book Value of Compressor = Com. Stk. + Ret....
Pronghorn Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an...
Pronghorn Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an expected salvage value of $1,280, and is expected to be driven 103,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,700 in 2020 and 10,200 in 2021. a. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense $ per mile b. Compute depreciation expense for 2020 and 2021 using (1)...
Sellers Construction Company purchased a compressor for $115,200 cash. It had an estimated useful life of four years and a $8,800 salvage value. At the beginning of the third year of use, the company spent an additional $7,640 related to the equipment. Th
Sellers Construction Company purchased a compressor for $115,200 cash. It had an estimated useful life of four years and a $8,800 salvage value. At the beginning of the third year of use, the company spent an additional $7,640 related to the equipment. The company’s financial condition just prior to this expenditure is shown in the following statements model: Assets=EquityRev.−Exp.=Net Inc.Cash FlowCash+Book Value of Compressor=Com. Stk.+Ret. Earn.11,360+62,000=23,800+49,560NA−NA=NANA RequiredRecord the $7,640 expenditure in the statements model under each of the following independent assumptions: (In the Cash Flow...
Fairuz Corporation purchased a truck on January 1, 2020 for $55,000. The truck is estimated to...
Fairuz Corporation purchased a truck on January 1, 2020 for $55,000. The truck is estimated to have a salvage value of $5,000 and a useful life of 150,000 miles. It was driven 23,000 miles in 2020 and 31,000 miles in 2021. Instructions: Compute depreciation expense using the units-of-production method for 2020 and 2021.
Bridgeport Company purchased a delivery truck for $27,000 on January 1, 2020. The truck has an...
Bridgeport Company purchased a delivery truck for $27,000 on
January 1, 2020. The truck has an expected salvage value of $1,500,
and is expected to be driven 102,000 miles over its estimated
useful life of 10 years. Actual miles driven were 12,800 in 2020
and 14,300 in 2021.
'Calculate depreciation expense per mile under units-of-activity
method. (Round answer to 2 decimal places, e.g.
0.50.)
Depreciation expense
$
per mile
Whispering Winds Company purchased a delivery truck for $25,000 on January 1, 2020. The truck has...
Whispering Winds Company purchased a delivery truck for $25,000 on January 1, 2020. The truck has an expected salvage value of $3,160, and is expected to be driven 104,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,000 in 2020 and 11,500 in 2021 "(a1) Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense per mile
please answer ASAP thank you Sellers Construction Company purchased a compressor for $116,000 cash. It had...
please answer ASAP thank you
Sellers Construction Company purchased a compressor for $116,000 cash. It had an estimated useful life of four years and a $8,200 salvage value. At the beginning of the third year of use, the company spent an additional $9,430 related to the equlpment. The company's financial condition just prior to this expenditure is shown In the following statements model: Assets xp - Net Inc Cash Flow Cash 18,810 Book Value of Compressor 62,18e com. Stk 25,68e...
Novak Corporation purchased a truck at the beginning of 2020 for $62,500. The truck is estimated to have a salvage valu...
Novak Corporation purchased a truck at the beginning of 2020 for $62,500. The truck is estimated to have a salvage value of $2,500 and a useful life of 200,000 miles. It was driven 28,750 miles in 2020 and 38,750 miles in 2021. Compute depreciation expense using the units-of-production method for 2020 and 2021 Depreciation expense for 2020 Depreciation expense for 2021
Tower Company owned a service truck that was purchased at the beginning of 2018 for $46.000. It had an estimated life of three years and an estimated salvage value of $4,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model. Assets Revenue Expense Net Income Cash Flow Cash 34,800 Machine 46,800 Equity Retained = Common Stock + Earnings 17,880 35,880 Accumulated Depreciation 28,000 NA NA NA NA In...
can someone help me , most of the answer are incorrect and its
not complete .
thank you
7100 =this number is incorect . it can't be negative or positive.
and the last line its totally incorrect it's not 16450
7100 for machine is incorrect . it can't be result positive or
negative . i tried already . and it's incorrect
accumulated Depreciation 26.000 Machine 0.000 31.000 - - Stock 12.000 + 35,000 NA - In 2020, Tower Company spent...
Fairuz Corporation purchased a truck on January 1, 2020 for $55,000. The truck is estimated to have a salvage value of $5,000 and a useful life of 150,000 miles. It was driven 23,000 miles in 2020 and 31,000 miles in 2021. Instructions: Compute depreciation expense using the units-of-production method for 2020 and 2021.
Bridgeport Company purchased a delivery truck for $27,000 on
January 1, 2020. The truck has an expected salvage value of $1,500,
and is expected to be driven 102,000 miles over its estimated
useful life of 10 years. Actual miles driven were 12,800 in 2020
and 14,300 in 2021.
'Calculate depreciation expense per mile under units-of-activity
method. (Round answer to 2 decimal places, e.g.
0.50.)
Depreciation expense
$
per mile
Whispering Winds Company purchased a delivery truck for $25,000 on January 1, 2020. The truck has an expected salvage value of $3,160, and is expected to be driven 104,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,000 in 2020 and 11,500 in 2021 "(a1) Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense per mile
please answer ASAP thank you
Sellers Construction Company purchased a compressor for $116,000 cash. It had an estimated useful life of four years and a $8,200 salvage value. At the beginning of the third year of use, the company spent an additional $9,430 related to the equlpment. The company's financial condition just prior to this expenditure is shown In the following statements model: Assets xp - Net Inc Cash Flow Cash 18,810 Book Value of Compressor 62,18e com. Stk 25,68e...
Novak Corporation purchased a truck at the beginning of 2020 for $62,500. The truck is estimated to have a salvage value of $2,500 and a useful life of 200,000 miles. It was driven 28,750 miles in 2020 and 38,750 miles in 2021. Compute depreciation expense using the units-of-production method for 2020 and 2021 Depreciation expense for 2020 Depreciation expense for 2021
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