Exercise 22-11 Flounder Co. purchased a equipment on January 1, 2015, for $572,000. At that time,...
Exercise 22-11 Flounder Co. purchased a equipment on January 1, 2015, for $572,000. At that time, it was estimated that the equipment would have a 10-year life and no salvage value. On December 31, 2018, the firm’s accountant found that the entry for depreciation expense had been omitted in 2016. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation, starting with the year 2018. At present, the company uses the sum-of-the-years’-digits method for depreciating equipment. Prepare the general journal entries that should be made at December 31, 2018, to record these events. (Ignore tax effects.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Homework Answers
Add Answer to:
Exercise 22-11 Flounder Co. purchased a equipment on January 1,
2015, for $572,000. At that time,...
Buffalo Co. purchased a equipment on January 1, 2015, for $517,000. At that time, it was...
Buffalo Co. purchased a equipment on January 1, 2015, for $517,000. At that time, it was estimated that the equipment would have a 10-year life and no salvage value. On December 31, 2018, the firm’s accountant found that the entry for depreciation expense had been omitted in 2016. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation, starting with the year 2018. At present, the company uses the sum-of-the-years’-digits method for depreciating equipment....
Stellar Co. purchased a equipment on January 1, 2015, for $610,500. At that time, it was...
Stellar Co. purchased a equipment on January 1, 2015, for
$610,500. At that time, it was estimated that the equipment would
have a 10-year life and no salvage value. On December 31, 2018, the
firm’s accountant found that the entry for depreciation expense had
been omitted in 2016. In addition, management has informed the
accountant that the company plans to switch to straight-line
depreciation, starting with the year 2018. At present, the company
uses the sum-of-the-years’-digits method for depreciating
equipment....
*Exercise 22-11 Crane Co. purchased a machine on January 1, 2018, for $588,500. At that time,...
*Exercise 22-11 Crane Co. purchased a machine on January 1, 2018, for $588,500. At that time, it was estimated that the machine would have a 10-year life and no salvage value. On December 31, 2021, the firm's accountant found that the entry for depreciation expense had been omitted in 2019. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation, starting with the year 2021. At present, the company uses the sum-of-the-years'-digits method for...
Pearl Co. purchased a equipment on January 1, 2015, for $506,000. At that time, it was...
Pearl Co. purchased a equipment on January 1, 2015, for $506,000. At that time, it was estimated that the equipment would have a 10-year life and no salvage value. On December 31, 2018, the firm’s accountant found that the entry for depreciation expense had been omitted in 2016. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation, starting with the year 2018. At present, the company uses the sum-of-the-years’-digits method for depreciating equipment....
Sandhill Ltd. purchased equipment on January 1, 2015 at a cost of $182,680. The equipment has an estimated useful life...
Sandhill Ltd. purchased equipment on January 1, 2015 at a cost of $182,680. The equipment has an estimated useful life of 10 years and a residual value of $10,720. Sandhill realized that there was a declining demand for the product being produced by the equipment. Given this indicator of possible impairment, management determined that the recoverable amount of the asset on December 31, 2018 was $97,530. The company uses the straight-line method of depreciation. (b) Record the impairment loss, if...
Brief Exercise 22-6 In 2017, Novak Corporation discovered that equipment purchased on January 1, 2015, for $45,000 was...
Brief Exercise 22-6 In 2017, Novak Corporation discovered that equipment purchased on January 1, 2015, for $45,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Novak uses straight-line depreciation Prepare Novak's 2017 journal entry to correct the error. (Credit account tities are automatically Indented when amount is entered. Do not Indent manually. If no entry Is required, select "No Entry" for the account titles...
Additional Exercise 249 Hayden Company purchased a machine on January 1, 2018, at a cost of...
Additional Exercise 249
Hayden Company purchased a machine on January 1, 2018, at a cost
of $90,000. It is expected to have an estimated salvage value of
$5,000 at the end of its 5-year life. The company capitalized the
machine and depreciated it in 2018 using the
double-declining-balance method of depreciation. The company has a
policy of using the straight-line method to depreciate machine but
the company accountant neglected to follow company policy when he
used the double-declining-balance method. Net...
Flounder Manufacturing has old equipment that cost $53,000. The equipment has accumulated depreciation of $28,100. Flounder...
Flounder Manufacturing has old equipment that cost $53,000. The equipment has accumulated depreciation of $28,100. Flounder has decided to sell the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) (a) What entry would Flounder make to record the sale of the equipment for $31,000 cash? (b) What entry would Flounder make to record the sale of...
On July 1, 2019, Sandhill Co, purchased new equipment for $90,000. Its estimated useful life was...
On July 1, 2019, Sandhill Co, purchased new equipment for $90,000. Its estimated useful life was 5 years with a $10,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
Exercise 11-16 Presented below is information related to equipment owned by Cheyenne Company at December 31,...
Exercise 11-16 Presented below
is information related to equipment owned by Cheyenne Company at
December 31, 2017. Cost $10,800,000 Accumulated depreciation to
date 1,200,000 Expected future net cash flows 8,400,000 Fair value
5,760,000 Assume that Cheyenne will continue to use this asset in
the future. As of December 31, 2017, the equipment has a remaining
useful life of 5 years. Prepare the journal entry (if any) to
record the impairment of the asset at December 31, 2017. (If no
entry...
Stellar Co. purchased a equipment on January 1, 2015, for
$610,500. At that time, it was estimated that the equipment would
have a 10-year life and no salvage value. On December 31, 2018, the
firm’s accountant found that the entry for depreciation expense had
been omitted in 2016. In addition, management has informed the
accountant that the company plans to switch to straight-line
depreciation, starting with the year 2018. At present, the company
uses the sum-of-the-years’-digits method for depreciating
equipment....
*Exercise 22-11 Crane Co. purchased a machine on January 1, 2018, for $588,500. At that time, it was estimated that the machine would have a 10-year life and no salvage value. On December 31, 2021, the firm's accountant found that the entry for depreciation expense had been omitted in 2019. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation, starting with the year 2021. At present, the company uses the sum-of-the-years'-digits method for...
Sandhill Ltd. purchased equipment on January 1, 2015 at a cost of $182,680. The equipment has an estimated useful life of 10 years and a residual value of $10,720. Sandhill realized that there was a declining demand for the product being produced by the equipment. Given this indicator of possible impairment, management determined that the recoverable amount of the asset on December 31, 2018 was $97,530. The company uses the straight-line method of depreciation. (b) Record the impairment loss, if...
Brief Exercise 22-6 In 2017, Novak Corporation discovered that equipment purchased on January 1, 2015, for $45,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Novak uses straight-line depreciation Prepare Novak's 2017 journal entry to correct the error. (Credit account tities are automatically Indented when amount is entered. Do not Indent manually. If no entry Is required, select "No Entry" for the account titles...
Additional Exercise 249
Hayden Company purchased a machine on January 1, 2018, at a cost
of $90,000. It is expected to have an estimated salvage value of
$5,000 at the end of its 5-year life. The company capitalized the
machine and depreciated it in 2018 using the
double-declining-balance method of depreciation. The company has a
policy of using the straight-line method to depreciate machine but
the company accountant neglected to follow company policy when he
used the double-declining-balance method. Net...
Flounder Manufacturing has old equipment that cost $53,000. The equipment has accumulated depreciation of $28,100. Flounder has decided to sell the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) (a) What entry would Flounder make to record the sale of the equipment for $31,000 cash? (b) What entry would Flounder make to record the sale of...
On July 1, 2019, Sandhill Co, purchased new equipment for $90,000. Its estimated useful life was 5 years with a $10,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
Exercise 11-16 Presented below
is information related to equipment owned by Cheyenne Company at
December 31, 2017. Cost $10,800,000 Accumulated depreciation to
date 1,200,000 Expected future net cash flows 8,400,000 Fair value
5,760,000 Assume that Cheyenne will continue to use this asset in
the future. As of December 31, 2017, the equipment has a remaining
useful life of 5 years. Prepare the journal entry (if any) to
record the impairment of the asset at December 31, 2017. (If no
entry...
Most questions answered within 3 hours.
-
As
an analyst you believe that Acme Company will pay a dividend of $3
per share...
asked 1 minute ago -
Claim: At most 81% of adults do not have hypertension. When 869
randomly selected adults were...
asked 17 minutes ago -
Assume a class has 19 members.
a. In how many ways can a president, a vice...
asked 15 minutes ago -
What could be a possible reason that protozoan infections are
increasing in the United States
asked 14 minutes ago -
Implement a Full Adder with two 4x1 Mux and the MSB as possible
inputs of the...
asked 24 minutes ago -
offering the survey (maybe via smart phones) is a good idea?
why?
asked 20 minutes ago -
2. Construct a business plan for your proposed business in
question 1, paying particular attention to:...
asked 18 minutes ago -
1. Choose a work situation in which you were required to do a
lot of creative...
asked 24 minutes ago -
An aqueous solution of barium hydroxide is
standardized by titration with a 0.196 M solution
of...
asked 1 hour ago -
accorsing to the data from thw college board, the mean wuantitive
Sat score for s demale...
asked 2 hours ago -
1- What are 5 general characteristics of Botticelli’s
paintings?
2- Describe 5 important traits of Flemish...
asked 3 hours ago -
A golfer claims that his average golf score at the course he
plays regularly is less...
asked 4 hours ago