On January 2, Manning Co. purchases and installs a new machine costing $324,000 with a five-...
On January 2, Manning Co. purchases and installs a new machine costing $324,000 with a five- year life and an estimated $30,000 salvage value. Management estimates the machine will produce 1,470,000 units of product during its life. Actual production of units is as follows: 355,600 in 1st year; 320,400 in 2nd year; 317,000 in 3rd year; 343,600 in 4th year; 138,500 in 5th year. The total number of units produced by the end of year 5 exceeds the original estimate—this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.)
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pepare a table in Excel or on paper with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (30 points)
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Assume that the machine is sold at the end of year 3. Using the straight line method calculations, prepare the journal entry to record the sale given the following separate situations: (18 points)
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The machine was sold for $150,000.
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The machine was sold for $140,000
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The machine was sold for $147,600.
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On January 2, Manning Co. purchases and installs a new machine
costing $324,000 with a five-...
Problem 10-2A Depreciation methods LO P1 A machine costing $216,200 with a four-year life and an...
Problem 10-2A Depreciation methods LO P1 A machine costing $216,200 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 493,000 units of product during its life. It actually produces the following units: 122,000 in 1st year, 122,600 in 2nd year, 119,900 in 3rd year, 138,500 in 4th year. The total number of units produced by the end of year 4 exceeds the...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $184,800. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: (1) The machine is sold for $79,200 cash. (2)...
II Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the...
II Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,200. The machine's useful life is estimated at 10 years, or 386,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 32,600 units of product. Exercise 8-4 Straight-line depreciation LO P1 Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreclation Annual Depreciation Expense Choose Numerator: /...
2. KOOL Co. purchases and installs a machine on Jan. 1, 2013 at a cost of...
2. KOOL Co. purchases and installs a machine on Jan. 1, 2013 at a cost of $109,000 Strigh-lie depreciation is taken each year assuming a seven-year life and a salvage cost of $4,00. The machine is disposed on Jun 29, 2017. 1) Journalize the depreciation cost of the Year 2013 and 2017.2) On Jun 2 2017 the machine is sold for $45,500 for cash. Journalize the transaction. direct write-off method to deal 3. Journalize the transactions for TED Co, assuming...
Minor $135.000. The Company installs a machine in its factory at the beginning of the year...
Minor $135.000. The Company installs a machine in its factory at the beginning of the year at a cost of The machine's useful life is estimated to be 5 years, or 300,000 units of product, with 000 salvage value. During its first year, the machine produces 64,500 units of product Sermine the machines first year depreciation expense under the double-declining balance at the $15.000 salvage irst year's first yeated to method. A) S66,000. B) $54,000. C) $24.000, D) $25,800. E)...
Problem 8-2A Depreciation methods LO P1 A machine costing $216,000 with a four-year life and an...
Problem 8-2A Depreciation methods LO P1 A machine costing $216,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 495,000 units of product during its life. It actually produces the following units: 123,000 in 1st year, 123,100 in 2nd year, 120,400 in 3rd year, 138,500 in 4th year. The total number of units produced by the end of year 4 exceeds the...
Ramirez Company installs a computerized manufacturing machine inits factory at the beginning of the year...
Ramirez Company installs a computerized manufacturing machine in
its factory at the beginning of the year at a cost of $45,900. The
machine's useful life is estimated at 10 years, or 389,000 units of
product, with a $7,000 salvage value. During its second year, the
machine produces 32,900 units of product.Determine the machine’s second-year depreciation and year end
book value under the straight-line method.
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $134,400. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: (1) The machine is sold for $67,200 cash. (2)...
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $86,800.
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $86,800. The machine's useful life is estimated at 20 years, or 404,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 34,400 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method.
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year...
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine’s useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product. Determine the machine’s second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Choose Numerator: / Choose Denominator: = Annual Depreciation Expense / = Depreciation expense...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $184,800. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: (1) The machine is sold for $79,200 cash. (2)...
II Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,200. The machine's useful life is estimated at 10 years, or 386,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 32,600 units of product. Exercise 8-4 Straight-line depreciation LO P1 Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreclation Annual Depreciation Expense Choose Numerator: /...
2. KOOL Co. purchases and installs a machine on Jan. 1, 2013 at a cost of $109,000 Strigh-lie depreciation is taken each year assuming a seven-year life and a salvage cost of $4,00. The machine is disposed on Jun 29, 2017. 1) Journalize the depreciation cost of the Year 2013 and 2017.2) On Jun 2 2017 the machine is sold for $45,500 for cash. Journalize the transaction. direct write-off method to deal 3. Journalize the transactions for TED Co, assuming...
Minor $135.000. The Company installs a machine in its factory at the beginning of the year at a cost of The machine's useful life is estimated to be 5 years, or 300,000 units of product, with 000 salvage value. During its first year, the machine produces 64,500 units of product Sermine the machines first year depreciation expense under the double-declining balance at the $15.000 salvage irst year's first yeated to method. A) S66,000. B) $54,000. C) $24.000, D) $25,800. E)...
Problem 8-2A Depreciation methods LO P1 A machine costing $216,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 495,000 units of product during its life. It actually produces the following units: 123,000 in 1st year, 123,100 in 2nd year, 120,400 in 3rd year, 138,500 in 4th year. The total number of units produced by the end of year 4 exceeds the...
Ramirez Company installs a computerized manufacturing machine in
its factory at the beginning of the year at a cost of $45,900. The
machine's useful life is estimated at 10 years, or 389,000 units of
product, with a $7,000 salvage value. During its second year, the
machine produces 32,900 units of product.Determine the machine’s second-year depreciation and year end
book value under the straight-line method.
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $134,400. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: (1) The machine is sold for $67,200 cash. (2)...
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