Bart's Company has prepared the PP&E and depreciation schedule shown in Exhibit 8.54.1 below.
The following information is available (assume the beginning balance has been audited):
Answer:-
The amount of depreciation calculated on computer B is calculated for the 8 months, not for the whole year. The amount of depreciation will be $ 389000.
The Depreciation on the press is calculated only $75000 instead of $150000.
Adjusted Journal Entry
No | event | general journal | debit | credit |
1 | 1 | accumulated depreciation | $269000 | |
To cost of goods sold | $67500 | |||
To inventory | $7500 | |||
To general admin. expense | $194000 |
Accumulated depreciation A/c Dr. $ 269000
To cost of good sold $67500
To Inventory $7500
To General and administrative expenses $194000
Bart's Company has prepared the PP&E and depreciation schedule shown in Exhibit 8.54.1 below. The following...
Bart's Company has prepared the PP&E and depreciation
schedule shown in Exhibit 8.54.1 below.
The following information is available (assume the beginning
balance has been audited):
The land was purchased eight years ago when building 1 was
erected. The location was then remote but now is bordered by a
major freeway. The appraised value of the land is $35 million.
Building 1 has an estimated useful life of 35 years and no
residual value.
Building 2 was built by a...
P 11-6 Depreciation methods, partial-year depreciation; sale of assets .LO11-2 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 Asset Cost Value Life (in years) Land $ 100.000 ΝΙΑ N/A Building 500,000 none Equipment 240.000 10% of cost Vehicles 160,000 $12.000 Total $1,000,000 On...
Almirall uses the straight-line method to depreciate its property, plant & equipment. Almirall has four PP&E categories: (1) land, (2) buildings, (3) machinery & equipment, and (4) furniture & fixtures. The buildings were purchased on January 3, 2017 for $4,000,000, have an estimated useful life of 25 years and an estimated residual value of $500,000. The company elected the revaluation model under IAS 16 to determine the carrying value of its buildings subsequent to acquisition. In January 2018, the building...
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Revision of Depreciation Equipment with a cost of $899,100 has an estimated residual value of $89,100, has an estimated useful life of 27 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. $ b. Determine the book value after 14 full years of use. $ c. Assuming that at the start of the year 15 the remaining life is estimated to be 20 years and the residual value is estimated to be $93,100,...
Solich Sandwich Shop had the following long-term asset balances as of December 31, 2021: Accumulated Depreciation Land Building Equipment Patent Cost $ 83,000 448,000 250,000 190,000 $(85, 120) (47, 600) (76, 000) Book Value $ 83,000 362, 880 202, 400 114,000 Solich purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 10- year...
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...
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eexplain with proper steps ans
calculations
Endblast Productions showed the following selected asset balances on December 31, 2020: Land Building Accumulated depreciation, building Equipment Accumulated depreciation, equipment $428,800 558,400 406,400 187,200 81,000 "Remaining estimated useful life is eight years with a residual value of $20,000; depreciated using the straight-line method to the nearest whole month. 2Total estimated useful life is 10 years with a residual value of $24,000; depreciated using the double-declining balance method to the nearest whole month. Required:...
4. Tarrier, Inc., has the following PPE account: Land, Building, and Equipment, with a separate accumulated depreciation account for each of these except land. Tarrier completed the following transactions: (12marks) Traded in equipment with accumulated depreciation of $65,000(cost of$ 139,000) for similar new equipment with a cash cost of $ 179,000. Received a trade-in allowance of $73,000 on the old equipment and paid $106,000 in cash Jan 2 Sold a building that had a cost of $635,000 and had accumulated...