Homework Answers
The correct option is $3,875
Explanation
Annual depreciation expense = (Cost of equipment ─ Salvage value) ÷ Useful live of equipment
= ($50,000 ─ $3,500) ÷ 5
= $9,300
Depreciation expense in 2020 = Annual depreciation expense × 5 months ÷ 12 months
= $9,300 × 5 ÷ 12
= $3,875
Note: The cost of equipment is 50,000 and the company used this equipment for 5 months in 2020 (from August 1, 2020 to December 31, 2020) and therefore the company reports $3,875 as depreciation expense in 2020 income statement.
Add Answer to:
On August 1, 2020 Noa Corporation purchased spa and beauty equipment for $50,000 paying $20,000 in...
May 1 - Purchased office equipment for $30,000, paying $6,000 down and signing a 2-year, 12%...
May 1 - Purchased office equipment for $30,000, paying $6,000 down and signing a 2-year, 12% (annual rate) note payable for the balance. The office equipment is expected to have a useful life of 10 years and a salvage value of $3,000. Straight-line depreciation is used. Required: On the basis of the preceding information (both the transactions and additional information), prepare AJEs to adjust the company’s books as of December 31, 2020.
Question 1 (1 point) Equipment costing $20,000 machine is purchased by paying $5,000 cash and signing...
Question 1 (1 point) Equipment costing $20,000 machine is purchased by paying $5,000 cash and signing a note payable for the remainder. The journal entry should include a Barnes Company showed the following balances at the end of its first year: Cash $14,000 Prepaid insurance 700 Accounts 3,500 receivable Accounts payable 2,800 Notes payable 4,200 Common stock 5,400 Dividends 700 Revenues 24,000 Expenses 17,500 What did Barnes Company show as total credits on its trial balance?
Tatsuo Corporation purchased farm equipment on January 1, 2019, for $280,000. In 2019 and 2020, Tatsuo...
Tatsuo Corporation purchased farm equipment on January 1, 2019, for $280,000. In 2019 and 2020, Tatsuo depreciated the asset on a straight-line basis with an estimated useful life of five years and a $90,000 residual value. In 2021, due to changes in technology, Tatsuo revised the residual value to $30,000 but still plans to use the equipment for the full five years. What depreciation would Tatsuo record for the year 2021 on this equipment? Multiple Choice $52,000. $58,000. $50,000. $28,000.
Swifty Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $125...
Swifty Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $125,100. The company estimated that the machine would have a salvage value of $17,100 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. (c) Sum-of-the-years'-digits for 2021 (d) Double-declining-balance for 2021
On January 1, 2013, Dana Corporation purchased equipment for $450,000. Installation costs were an additional $50,000....
On January 1, 2013, Dana Corporation purchased equipment for $450,000. Installation costs were an additional $50,000. The equipment's useful life was estimated at 5 years, with a salvage value of $25,000. The company planned to depreciate the equipment over five years using the straight-line method for reporting purposes and the double declining balance method for tax purposes. Dana Corporation's accumulated depreciation at December 31, 2014 for reporting purposes and for tax purposes, respectively, will be: O $190,000 and $304,000 O...
Novak Company purchased equipment for $230,000 on October 1, 2020. It is estimated that the equipment...
Novak Company purchased equipment for $230,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 36,000 units and estimated working hours are 20,000. During 2020, Novak uses the equipment for 520 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. (Novak is on a calendar-year basis ending December 31.) a. Straight line method for 2020...
show all work done 1. On December 1, 2018, the company purchased a piece of equipment...
show all work done
1. On December 1, 2018, the company purchased a piece of equipment costing $28,000. paying $4,000 and financing the remainder. The equipment had an expected life of 5 years and a salvage value of $4,000. Interest on the note was at 6% and both principal and interest are due on Feb 28, 2019. Prepare the journal entry to reflect the purchase only. 2./3. What journal entries are required at the end of December, 2018 with regard...
SHOW ALL WORK, NO WRITTEN WORK Noa Company purchased a machine on 1 January, 2014, for...
SHOW ALL WORK, NO WRITTEN WORK
Noa Company purchased a machine on 1 January, 2014, for $180,000 and estimates its useful life and residual value at 10 years and $30,000, respectively. On 1 January, 2020, the company added 6 years to the original useful-life estimate. What is the depreciation expense amount for year ended on 31 December, 2020, assuming that Noa uses the straight-line method. Ori Company borrows $5,000 from Liat Corp. on Sep/30/2018, by signing a note to Liat....
On July 1, 2020, Flounder Corporation purchased Young Company by paying $261,000 cash and issuing a...
On July 1, 2020, Flounder Corporation purchased Young Company by paying $261,000 cash and issuing a $143,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash $50,000 Accounts payable $208,000 Accounts receivable 91,000 Stockholders' equity 238,700 Inventory 108,000 $446,700 Land 41,100 Buildings (net) 74,800 Equipment (net) 70,500 Trademarks 11,300 $446,700 The recorded amounts all approximate current values except for land (fair value of $62,600), inventory (fair value of $125,800), and...
Questions On August 1, 2020, Grouper Corporation purchased a new machine for its assembly process at...
Questions On August 1, 2020, Grouper Corporation purchased a new machine for its assembly process at a cost of $126,000. The company estimated that the machine would have atrade-in value of $14,400 at the end of its useful life. Its useful life was estimated to be six years and its working hours were estimated to be 15,000 hours, Grouper's year end is December 31 (a) Your answer is incorrect. Try again. Calculate the depreciation expense under straight-line method for 2020....
Question 1 (1 point) Equipment costing $20,000 machine is purchased by paying $5,000 cash and signing a note payable for the remainder. The journal entry should include a Barnes Company showed the following balances at the end of its first year: Cash $14,000 Prepaid insurance 700 Accounts 3,500 receivable Accounts payable 2,800 Notes payable 4,200 Common stock 5,400 Dividends 700 Revenues 24,000 Expenses 17,500 What did Barnes Company show as total credits on its trial balance?
On January 1, 2013, Dana Corporation purchased equipment for $450,000. Installation costs were an additional $50,000. The equipment's useful life was estimated at 5 years, with a salvage value of $25,000. The company planned to depreciate the equipment over five years using the straight-line method for reporting purposes and the double declining balance method for tax purposes. Dana Corporation's accumulated depreciation at December 31, 2014 for reporting purposes and for tax purposes, respectively, will be: O $190,000 and $304,000 O...
show all work done
1. On December 1, 2018, the company purchased a piece of equipment costing $28,000. paying $4,000 and financing the remainder. The equipment had an expected life of 5 years and a salvage value of $4,000. Interest on the note was at 6% and both principal and interest are due on Feb 28, 2019. Prepare the journal entry to reflect the purchase only. 2./3. What journal entries are required at the end of December, 2018 with regard...
SHOW ALL WORK, NO WRITTEN WORK
Noa Company purchased a machine on 1 January, 2014, for $180,000 and estimates its useful life and residual value at 10 years and $30,000, respectively. On 1 January, 2020, the company added 6 years to the original useful-life estimate. What is the depreciation expense amount for year ended on 31 December, 2020, assuming that Noa uses the straight-line method. Ori Company borrows $5,000 from Liat Corp. on Sep/30/2018, by signing a note to Liat....
On July 1, 2020, Flounder Corporation purchased Young Company by paying $261,000 cash and issuing a $143,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash $50,000 Accounts payable $208,000 Accounts receivable 91,000 Stockholders' equity 238,700 Inventory 108,000 $446,700 Land 41,100 Buildings (net) 74,800 Equipment (net) 70,500 Trademarks 11,300 $446,700 The recorded amounts all approximate current values except for land (fair value of $62,600), inventory (fair value of $125,800), and...
Questions On August 1, 2020, Grouper Corporation purchased a new machine for its assembly process at a cost of $126,000. The company estimated that the machine would have atrade-in value of $14,400 at the end of its useful life. Its useful life was estimated to be six years and its working hours were estimated to be 15,000 hours, Grouper's year end is December 31 (a) Your answer is incorrect. Try again. Calculate the depreciation expense under straight-line method for 2020....
Most questions answered within 3 hours.
-
Holly told her roommate Maria, “If you make dinner tonight, then
I will clean the bathroom...
asked 1 minute ago -
All of the following equations for the reaction between
nitrogen, N2 and oxygen, O2 to produce...
asked 6 minutes ago -
A toy car that is traveling on a horizontal dock with a speed of
3.00 m/s...
asked 4 minutes ago -
Hydrogen fluoride is used in the manufacture of Freons (which
destroy ozone in the stratosphere) and...
asked 19 minutes ago -
Please answer question 3.
2. A city has learned that by buying larger garbage trucks, it...
asked 17 minutes ago -
What is “power” in communication interactions, according to
Martin & Nakayama (2018)?
asked 16 minutes ago -
Would the color red look different if you were immersed in water
rather than in air?
asked 27 minutes ago -
A steel piping is to be produced by centrifugal casting. The
length is 3.5 meters and...
asked 30 minutes ago -
3...
The following information was taken from Indriks Company’s cash
budget for the month of July:...
asked 42 minutes ago -
Country Company had the following partially completed payroll
register:
Partial payroll register:
Earnings
Withholdings
Salaries
Beginning...
asked 46 minutes ago -
I
have to separate 5 ions into 5 different test tubes
-> I CAN’T MAKE THE...
asked 56 minutes ago -
Juanita took a business trip from Houston to New York. She
worked for 4 days, then...
asked 55 minutes ago