Part 3 (4 points) Haworth Manufacturing Company purchased a lathe on June 30, 2018, at a cost of $80,000. The residual value of the lathe was estimated to be $5,000 at the end of a five-year life. The lathe was sold on March 31, 2022, for $17,000. Haworth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service.
a> Calculate the amount of accumulated depreciation of the lathe as of March 31, 2022.
Annual depreciation expense =
Depreciation expense of year 2018 Jun. 30 to Dec. 31, 2018 =
Depreciation expense of year 2019 =
Depreciation expense of year 2020 =
Depreciation expense of year 2021 =
Depreciation expense of year 2022 Jan. 1 to Mar. 31, 2022 =
Accumulated depreciation as of March 31, 2022 =
b> Prepare the journal entry to record the sale (Lathe is reported in the equipment account).
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Credit |
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Part 3 (4 points) Haworth Manufacturing Company purchased a lathe on June 30, 2018, at a...
Exercise 11-12 Depreciation methods; disposal; partial periods [LO11-2] Howarth Manufacturing Company purchased a lathe on June 30, 2014 at a cost of $105,000. The residual value of the lathe was estimated to be $9,000 at the end of a five-year life. The lathe was sold on March 31, 2018. for $27,000. Howarth uses the straight line depreciation method for all of its plant and equipment. Partial year depreciation is calculated based on the number of months the asset is in...
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $95,000. The residual value of the equipment was estimated to be $5,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $21,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale....
On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,000,000 to the various types of assets along with estimated useful lives and residual values are as follows: Estimated Residual Estimated Useful Value Life (in years) Asset Cost Land $ 100,000 N/A N/A Building 500,000 none 25 Equipment 240,000 10% of cost 8 Vehicles 160,000 $12,000 8 Total $1,000,000 On June 29, 2022, equipment included in the...
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $800,000. The residual value of the equipment was estimated to be $50,000 at the end of a five year life. The equipment was sold on March 31, 2021, for $170,000. Howarth uses the straight- line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service Required: 1. Prepare the journal entry to record...
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $160,000. The residual value of the equipment was estimated to be $10,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $43,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale....
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $800,000. The residual value of the equipment was estimated to be $50,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $170,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale....
On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,000,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Cost Estimated Residual Value Estimated Useful Life (in years) Land 100,000 N/A N/A Building 500,000 None 25 Equipment 240,000 10% of cost 8 Vehicles 160,000 12,000 8 Total 1,000,000 On June 29, 2022, equipment included in the March...
Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $170,000. The residual value of the equipment was estimated to be $20,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $54,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to record the sale....
*Problem 9-4A a-b (Part Level Submission) Blossom Company purchased equipment on March 27, 2018, at a cost of $272,000. Management is contemplating the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight- line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the...
On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,090,000 to the various types of assets along with estimated useful lives and residual values are as follows: Asset Cost Estimated Residual Value Estimated Useful Life (in years) Land $ 145,000 N/A N/A Building 590,000 none 20 Equipment 155,000 12% of cost 10 Vehicles 200,000 $ 16,000 10 Total $ 1,090,000 On June 29, 2022, equipment included...