Straight-line depreciation of office equipment, based on a 5-year life and a $7,900 salvage value, is...
Straight-line depreciation of office equipment, based on a 5-year life and a $7,900 salvage value, is $600 per month. Prepare the required adjusting entry, if any. (Office equipment = $43,900)
Homework Answers
Adjusting entry for depreciation
Journal
| Date | Account title | Debit | Credit |
| Depreciation expense | 600 | ||
| Accumulated depreciation- Office equipment | 600 |
It has not been mentioned in the question that for how much time, office equipment was used in the current year, hence adjusting entry has been made for 1 month only. If office equipment had been used for 2 months, depreciation expense would have been $1,200. Depreciation expense for different months can be calculated as under:
Depreciation expense = 600 x Number of months
Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubts. Thanks.
Add Answer to:
Straight-line depreciation of office equipment, based on a
5-year life and a $7,900 salvage value, is...
A company used straight-line depreciation for an item of equipment that cost $11,000, had a salvage...
A company used straight-line depreciation for an item of equipment that cost $11,000, had a salvage value of $1,700, and had a 6-year useful life. After depreciating the asset for 4 complete years, the salvage value was reduced to $1,100 and its total useful life was increased from 6 years to 9 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life (round depreciation per year to a...
A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage value of $2,000 and...
A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage value of $2,000 and a five-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,200 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life: $2,000 $5,400 $1,000 $1,800 $2,400
The following information is provided for LAX, LLC for 2021: Vehicles 5,000 Salvage value Life in...
The following information is provided for LAX, LLC for 2021: Vehicles 5,000 Salvage value Life in years Life in units Basket assets Land Land improv. Office building Factory Equipment Vehicles Total basket value: Equipment 35,000 7 900,000 Appraisal $ $ 720,000 54,000 1,710,000 720,000 360,000 36,000 $ 3,600,000 100,000 Salvage value Life in years Life in miles Units in 2021 131,853 Miles in 2021 24,608 Cash paid for basket: $ 3,500,000 1. Prepare the allocation table for the basket purchase:...
A company used straight-line depreciation for an item of equipment that cost $13,550, had a salvage...
A company used straight-line depreciation for an item of equipment that cost $13,550, had a salvage value of $2,600 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,355 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:
A company used straight-line depreciation for an item of equipment that cost $18,250, had a salvage...
A company used straight-line depreciation for an item of equipment that cost $18,250, had a salvage value of $4,600 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,825 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life Multiple Choice $1,365. $4140 $4,600 $7008. $3,200.
E1. Bobby purchases equipment with cost of $40,000 and salvage value of $3,500 and life of...
E1. Bobby purchases equipment with cost of $40,000 and salvage value of $3,500 and life of 4 years. Create a STRAIGHT LINE DEPRECIATION SCHEDULE. Year Depr. Cost Rate Depr. Exp. Accum. Depr. Book Value E2. Use the same Cost, SV and life for a depreciation schedule using DOUBLE DECLINING BALANCE Cost-$40,000 SV=$3,500 and Life = 4 years. Year Book Value Beg. Rate Depr. Exp. Accum. Depr. Book Value End 2 E3. Carlson purchased Equipment for $56,000 with salvage value $7,000...
An equipment has a total initial cost of $9000 with a 5 years useful life. Assume a salvage value of $750. Prepare a yearly depreciation schedule showing the depreciation charge and book value at the...
An equipment has a total initial cost of $9000 with a 5 years useful life. Assume a salvage value of $750. Prepare a yearly depreciation schedule showing the depreciation charge and book value at the beginning and end of each year. Use the Straight-Line Depreciation (SLD) method to answer following questions 4) a. Compute the yearly depreciation (show your solution handwriting or in Word document) b. Fill in the table below (show your solution handwring or in Word document) Year...
Fishing Guides Co. used straight-line depreciation for a boat that cost $13,550, had a salvage value...
Fishing Guides Co. used straight-line depreciation for a boat that cost $13,550, had a salvage value of $2,600 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,355 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:
E3. Carlson purchased Equipment for $56,000 with salvage value $7,000 and a 10-year life. Carlson used...
E3. Carlson purchased Equipment for $56,000 with salvage value $7,000 and a 10-year life. Carlson used the asset for four years, straight line, but it was apparent that the Equipment would last only 4 more years. 1. What was the book value of the Equipment after 4 years? $. 2. What will be the depreciation expense in each of the remaining 4 years?$ Hint: take the remaining book value, subtract salvage value, and divide by remaining life. E4. Partial Year...
A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line...
A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company uses the calendar year. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. 2. Prepare the general journal entry to record the disposal of the equipment under each...
The following information is provided for LAX, LLC for 2021: Vehicles 5,000 Salvage value Life in years Life in units Basket assets Land Land improv. Office building Factory Equipment Vehicles Total basket value: Equipment 35,000 7 900,000 Appraisal $ $ 720,000 54,000 1,710,000 720,000 360,000 36,000 $ 3,600,000 100,000 Salvage value Life in years Life in miles Units in 2021 131,853 Miles in 2021 24,608 Cash paid for basket: $ 3,500,000 1. Prepare the allocation table for the basket purchase:...
A company used straight-line depreciation for an item of equipment that cost $18,250, had a salvage value of $4,600 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,825 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life Multiple Choice $1,365. $4140 $4,600 $7008. $3,200.
E1. Bobby purchases equipment with cost of $40,000 and salvage value of $3,500 and life of 4 years. Create a STRAIGHT LINE DEPRECIATION SCHEDULE. Year Depr. Cost Rate Depr. Exp. Accum. Depr. Book Value E2. Use the same Cost, SV and life for a depreciation schedule using DOUBLE DECLINING BALANCE Cost-$40,000 SV=$3,500 and Life = 4 years. Year Book Value Beg. Rate Depr. Exp. Accum. Depr. Book Value End 2 E3. Carlson purchased Equipment for $56,000 with salvage value $7,000...
An equipment has a total initial cost of $9000 with a 5 years useful life. Assume a salvage value of $750. Prepare a yearly depreciation schedule showing the depreciation charge and book value at the beginning and end of each year. Use the Straight-Line Depreciation (SLD) method to answer following questions 4) a. Compute the yearly depreciation (show your solution handwriting or in Word document) b. Fill in the table below (show your solution handwring or in Word document) Year...
Fishing Guides Co. used straight-line depreciation for a boat that cost $13,550, had a salvage value of $2,600 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,355 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:
E3. Carlson purchased Equipment for $56,000 with salvage value $7,000 and a 10-year life. Carlson used the asset for four years, straight line, but it was apparent that the Equipment would last only 4 more years. 1. What was the book value of the Equipment after 4 years? $. 2. What will be the depreciation expense in each of the remaining 4 years?$ Hint: take the remaining book value, subtract salvage value, and divide by remaining life. E4. Partial Year...
A company purchased and installed equipment on January 1 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value. The equipment was disposed of on July 1 of the fourth year. The company uses the calendar year. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. 2. Prepare the general journal entry to record the disposal of the equipment under each...
Most questions answered within 3 hours.
-
How do different modes of transportation (truck, rail etc.)
affect transportation costs?
asked 49 seconds ago -
In the 2012-2013 NBA season (82 games) Kevin Durant made 90.5%
of his free throw attempts....
asked 2 minutes ago -
Dr. Jones of Medical Center Corporation (MCC) was thrilled with
the response he had received from...
asked 3 minutes ago -
A 0.53 m copper rod with a mass of 5.00×10−2 kg carries a
current of 13...
asked 15 minutes ago -
A company’s stock is currently selling for $125 per share. The
company has just paid a...
asked 7 minutes ago -
If the supply curve for aspirin is perfectly elastic, then a
reduction in demand will cause...
asked 8 minutes ago -
IT Project Management:
1. A work package should always represent less than 80 hours of
work....
asked 22 minutes ago -
football balon was kick from the ground and it goes at
the hand of the player...
asked 17 minutes ago -
Java Programming:
Task:
- Write some Java code that creates a collection (an
ArrayList, a TreeSet...
asked 21 minutes ago -
On January 1, Year 1, Li Company purchased an asset that cost
$75,000. The asset had...
asked 22 minutes ago -
Peanut allergies are a serious health concern for many people.
Researchers are considering using treatments to...
asked 43 minutes ago -
Hassock Corp. produces woven wall hangings. It takes 4 hours of
direct labor to produce a...
asked 37 minutes ago