Requirement 1
Total Cost of Machine | |
Machine A | $ 22,000.00 |
Machine B | $ 12,700.00 |
Machine C | $ 11,600.00 |
Working
Amount paid for assets | Installation cost | Renovation cost | Total Cost of Machine | |
Machine A | $ 20,600.00 | $ 800.00 | $ 600.00 | $ 22,000.00 |
Machine B | $ 11,100.00 | $ 900.00 | $ 700.00 | $ 12,700.00 |
Machine C | $ 10,800.00 | $ 200.00 | $ 600.00 | $ 11,600.00 |
Requirement 2
Transaction | General Journal | Debit | Credit |
1.. | Depreciation expense | $ 8,660.00 | |
Accumulated depreciation-Machine A | $ 4,100.00 | ||
Accumulated depreciation-Machine B | $ 2,240.00 | ||
Accumulated depreciation-Machine C | $ 2,320.00 | ||
(To record depreciation expense) |
Working
Straight line Method | ||
A | Cost | $ 22,000 |
B | Residual Value | $ 1,500 |
C=A - B | Depreciable base | $ 20,500 |
D | Life [in years left ] | 5 |
E=C/D | Annual SLM depreciation | $ 4,100.00 |
.
Units of Production method | ||
A | Cost | $ 12,700 |
B | Residual Value | $ 1,500 |
C=A - B | Depreciable base | $ 11,200 |
D | Usage in units(in Hours) | 20000 |
E | Depreciation per hour | $ 0.56 |
.
Depreciation schedule-Units of Activity | |||||
Year | Book Value | Usage | Depreciation expense | Ending Book Value | Accumulated Depreciation |
1 | $ 12,700 | 4000 | $ 2,240 | $ 10,460 | $ 2,240 |
.
Double declining Method | ||
A | Cost | $ 11,600 |
B | Residual Value | $ 1,500 |
C=A - B | Depreciable base | $ 10,100 |
D | Life [in years] | 10 |
E=C/D | Annual SLM depreciation | $ 1,010 |
F=E/C | SLM Rate | 10.00% |
G=F x 2 | DDB Rate | 20.00% |
.
Depreciation schedule-Double declining | |||||
Year | Beginning Book Value | Depreciation rate | Depreciation expense | Accumulated Depreciation | Ending Book Value |
1 | $ 11,600 | 20.00% | $ 2,320 | $ 2,320 | $ 9,280 |
At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing, Inc. The machines...
At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Machine B Machine C Amount paid for asset $ 20,900 $ 11,400 $ 11,100 Installation costs 950 600 500 Renovation costs prior to use 750 400 900 Repairs after production began 720 2,200 780 By the end of the first...
At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. $20,700 Machine A $ 20,700 850 650 520 Machine B $11,200 1,000 800 2,000 Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began $11,200 Machine C $ 10,900 300 700 580 $10,900 By the end of...
At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing, Inc. The machines Immediately were overhauled, were Installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began Machine A $20,500 750 550 320 Machine B $11,eee see 600 1,800 Machine C $10,700 6ee 1,000 880 By the end of the first year, each machine...
At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Machine B Machine C Amount paid for asset $ 7,650 $ 25,700 $ 9,400 Installation costs 250 650 550 Renovation costs prior to use 1,600 1,250 1,150 Repairs after production began 410 360 350 By the end of the first year,...
At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Мachine B Machine C Amount paid for asset $7,850 $26,100 850 $9,800 750 Installation costs 450 Renovation costs prior 2,000 1,450 1,750 to use Repairs after production began 450 400 450 By the end of the first year, each machine had...
At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines Immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts ints Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began Machine $7.750 350 1,800 Machine B $25,900 750 1.350 Machine C $9,600 650 1.450 380 eBook By the end of the first year, each machine had been...
At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Machine B Machine C Amount paid for asset $ 7,950 $ 26,300 $ 10,000 Installation costs 250 650 550 Renovation costs prior to use 2,200 1,550 2,050 Repairs after production began 470 420 500 By the end of the first year,...
At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts Machine A Machine B Machine c Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began $7,650 250 1,600 410 $9,400 550 1,150 350 $25,700 650 1,250 360 By the end of the first year, each machine had...
At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Machine B Machine C Cost of the asset $ 10,500 $ 39,700 $ 23,500 Installation costs 800 3,600 2,700 Renovation costs prior to use 600 3,200 3,700 Repairs after production began 800 600 2,200 By the end of the first year,...
At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Machine B Machine C Cost of the asset $ 9,800 $ 39,000 $ 22,800 Installation costs 950 2,900 2,000 Renovation costs prior to use 750 2,500 3,000 Repairs after production began 500 900 1,500 By the end of the first year,...