Change in Accounting Estimate: On 7/1/15 AU Co. bought a $50,000 piece of equipment. It depreciated...
Change in Accounting Estimate:
On 7/1/15 AU Co. bought a $50,000 piece of equipment. It depreciated the equipment using the straight-line method assuming $5000 salvage value and a 9-year life. On 1/1/20 AU Co. decided the equipment had 6 more useful years and a $2000 salvage value. What is the depreciation entry for the year ending 12/31/2020?
Journal entry:
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Change in Accounting Estimate:
On 7/1/15 AU Co. bought a $50,000 piece of equipment. It
depreciated...
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E9.9 (LO 3), AP Thieu Co. has delivery equipment that cost $50,000 and has been depreciated...
E9.9 (LO
3), AP Thieu Co. has delivery
equipment that cost $50,000 and has been depreciated $24,000.
Journalize transactions related to disposals of plant
assets.
Instructions
Record entries for the disposal under the following
assumptions.
a. It was scrapped as having no value.
b. It was sold for $37,000.
c. It was sold for $20,000.
E9.12 (LO
1,
2, 3),
AN Shown below are the T-accounts relating to equipment
that was purchased for cash by a company on the first...
QUESTION 4 (10 marks) On April 1, 2015, Thunderbird Co sold a piece of equipment that...
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On January 1, 2014, Carla Company purchased a building and equipment that have the following useful...
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On January 1, 2014, Swifty Company purchased a building and equipment that have the following useful...
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Exercise 22-12 On January 1, 2014, Pearl Company purchased a building and equipment that have the...
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1. Equipment was purchased at the beginning of Year 1 for $680,000. At the time of its purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $80,000. The equipment was depreciated using the straight-line method through Year 3. At the beginning of year 4, the estimated life was revised to a total life of 8 years and the expected salvage value was changed to $50,000. Prepare the journal entry to record...
Wolverines Corporation purchased a large piece of equipment for $500,000 and placed in in service on January 1, 2018. The machinery has a useful life of 5 years or 37,500 hours of operation. Its estimated residual value is $50,000 Please give me the following (while clearly showing your calculations): 1. Journal entry for Depreciation Expense in 2020 using the Straight-Line Method 2. Journal entry for Depreciation Expense in 2020 using the Production method with depreciation being based on estimated machine...
E9.9 (LO
3), AP Thieu Co. has delivery
equipment that cost $50,000 and has been depreciated $24,000.
Journalize transactions related to disposals of plant
assets.
Instructions
Record entries for the disposal under the following
assumptions.
a. It was scrapped as having no value.
b. It was sold for $37,000.
c. It was sold for $20,000.
E9.12 (LO
1,
2, 3),
AN Shown below are the T-accounts relating to equipment
that was purchased for cash by a company on the first...
QUESTION 4 (10 marks) On April 1, 2015, Thunderbird Co sold a piece of equipment that had cost $55,00 piece of equipment that had cost $35,000 on January 1, 2011. The equipment had a residual value of $5,000, a useful life 10 years, and double balance depreciation at twice the straight-line rate was used. On December 31, 2014, accumulated depreciation was $20.664. The asset was sold for $14,200. Prepare the journal entry to record depreciation up to the date of...
On January 1, 2014, Carla Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $52,400 salvage value, $859,200 cost Equipment, 12-year estimated useful life, $9,200 salvage value, $108,200 cost The building has been depreciated under the double-declining-balance method through 2017. In 2018, the company decided to switch to the straight-line method of depreciation. Carla also decided to change the total useful life of the equipment to 9 years,...
On January 1, 2014, Swifty Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $48,400 salvage value, $750,400 cost Equipment, 12-year estimated useful life, $10,000 salvage value, $97,300 cost The building has been depreciated under the double-declining-balance method through 2017. In 2018, the company decided to switch to the straight-line method of depreciation. Swifty also decided to change the total useful life of the equipment to 9 years,...
Exercise 22-12 On January 1, 2014, Pearl Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $53,200 salvage value, $746,800 cost Equipment, 12-year estimated useful life, $10,800 salvage value, $103,500 cost The building has been depreciated under the double-declining-balance method through 2017. In 2018, the company decided to switch to the straight-line method of depreciation. Pearl also decided to change the total useful life of the equipment to...
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