Homework Answers
a) Annual depreciation under straight line = (Cost - Residual Value)/Useful life
= ($450,000 - $72,000)/10 yrs = $37,800 per year
Depreciation charged from Jan 2, 18 to Dec 31, 2020 = $37,800*3 yrs = $113,400
Depreciation from Jan 1, 2021 to June 1, 2021 = $37,800*5/12 = $15,750
Journal Entries (Amounts in $)
| Date | Account Name | Dr. | Cr. |
| June 1, 2021 | Depreciation Expense | 15,750 | |
| Accumulated Depreciation-Equipment | 15,750 | ||
| (To update depreciation) | |||
| June 1, 2021 | Cash (250,200-1,440) | 248,760 | |
| Accumulated Depreciation-Equipment (113,400+15,750) | 129,150 | ||
| Loss on Sale of Equipment (bal fig) (450,000-248,760-129,150) | 72,090 | ||
| Equipment | 450,000 | ||
| (To record the disposal of equipment) |
b) If the equipment was abandoned:-
Journal Entries (Amounts in $)
| Date | Account Name | Dr. | Cr. |
| June 1, 2021 | Depreciation Expense | 15,750 | |
| Accumulated Depreciation-Equipment | 15,750 | ||
| (To update depreciation) | |||
| June 1, 2021 | Accumulated Depreciation-Equipment (113,400+15,750) | 129,150 | |
| Loss on Sale of Equipment (bal fig) (450,000-129,150) | 320,850 | ||
| Equipment | 450,000 | ||
| (To record the disposal of equipment) |
Add Answer to:
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $250,200 cash. Manchester...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $194,600 cash. Manchester...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $194,600 cash. Manchester incurred $1,120 of removal and selling costs on disposal. The equipment cost $350,000 when it was purchased on January 2, 2018. Its estimated residual value and useful life were $56,000 and 10 years, respectively. Manchester uses straight-line depreciation and records annual depreciation on each December 31. a. Prepare the journal entries needed to record the asset disposal on June 1, 2021. b. Record the...
Recording Fixed Asset Disposal On April 1, 2020, one of the two large production machines used...
Recording Fixed Asset Disposal On April 1, 2020, one of the two large production machines used by Evert Company stripped a gear, causing major internal damage. On April 5, 2020, the company decided to purchase a new machine (cost of $146,000) so that production could continue. On January 1, the accounts showed the following for the old machine: original cost, $72,000; accumulated depreciation, $50,400 (20-year life; no residual value). The company did not accept a trade-in offer of $10,800. Instead,...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Entries Using Group Depreciation Method Ohio Company owns 10 warehouses of similar type except for...
Recording Entries Using Group Depreciation Method Ohio Company owns 10 warehouses of similar type except for varying size. The group system of depreciation is applied to the 10 warehouses, and the rate is 6% each year on cost. At the end of 2020, the asset account, Warehouses, showed a balance of $4,240,000 (residual value $240,000), and the Accumulated Depreciation account showed a balance of $1,920,000. At the start of 2021, Warehouse #8, costing $320,000, was torn down. Materials salvaged from...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Entries Using Group Depreciation Method Ohio Company owns 10 warehouses of similar type except for...
Recording Entries Using Group Depreciation Method Ohio Company owns 10 warehouses of similar type except for varying size. The group system of depreciation is applied to the 10 warehouses, and the rate is 6% each year on cost. At the end of 2020, the asset account, Warehouses, showed a balance of $10,600,000 (residual value $600,000), and the Accumulated Depreciation account showed a balance of $4,800,000. At the start of 2021, Warehouse #8, costing $800,000, was torn down. Materials salvaged from...
May I get some help on the incorrect answers. Recording Error Corrections Related to Equipment On...
May I get some help on the incorrect answers.
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost...
Recording Purchase of Equipment through Debt and Equity On January 1, 2020, Sidelines Company purchases equipment...
Recording Purchase of Equipment through Debt and Equity On January 1, 2020, Sidelines Company purchases equipment with an estimated 6-year useful life by making a $5,600 cash payment and issuing a noninterset-bearing note for $19,200 due in two years. The fair value of the the equipment is unknown. An 11% annual interest rate is typical of this transaction. The company uses the effective interest method to amortize interest expense and the straight-line method to estimate depreciation expense. a. Prepare the...
Gunkelson Company sells equipment on September 30, 2017, for $19,200 cash. The equipment originally cost $73,400...
Gunkelson Company sells equipment on September 30, 2017, for $19,200 cash. The equipment originally cost $73,400 and as of January 1, 2017, had accumulated depreciation of $42,400. Depreciation for the first 9 months of 2017 is $5,750. Prepare the journal entries to (a) update depreciation to September 30, 2017, and (b) record the sale of 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...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $194,600 cash. Manchester incurred $1,120 of removal and selling costs on disposal. The equipment cost $350,000 when it was purchased on January 2, 2018. Its estimated residual value and useful life were $56,000 and 10 years, respectively. Manchester uses straight-line depreciation and records annual depreciation on each December 31. a. Prepare the journal entries needed to record the asset disposal on June 1, 2021. b. Record the...
Recording Fixed Asset Disposal On April 1, 2020, one of the two large production machines used by Evert Company stripped a gear, causing major internal damage. On April 5, 2020, the company decided to purchase a new machine (cost of $146,000) so that production could continue. On January 1, the accounts showed the following for the old machine: original cost, $72,000; accumulated depreciation, $50,400 (20-year life; no residual value). The company did not accept a trade-in offer of $10,800. Instead,...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Entries Using Group Depreciation Method Ohio Company owns 10 warehouses of similar type except for varying size. The group system of depreciation is applied to the 10 warehouses, and the rate is 6% each year on cost. At the end of 2020, the asset account, Warehouses, showed a balance of $4,240,000 (residual value $240,000), and the Accumulated Depreciation account showed a balance of $1,920,000. At the start of 2021, Warehouse #8, costing $320,000, was torn down. Materials salvaged from...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Entries Using Group Depreciation Method Ohio Company owns 10 warehouses of similar type except for varying size. The group system of depreciation is applied to the 10 warehouses, and the rate is 6% each year on cost. At the end of 2020, the asset account, Warehouses, showed a balance of $10,600,000 (residual value $600,000), and the Accumulated Depreciation account showed a balance of $4,800,000. At the start of 2021, Warehouse #8, costing $800,000, was torn down. Materials salvaged from...
May I get some help on the incorrect answers.
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost...
Recording Purchase of Equipment through Debt and Equity On January 1, 2020, Sidelines Company purchases equipment with an estimated 6-year useful life by making a $5,600 cash payment and issuing a noninterset-bearing note for $19,200 due in two years. The fair value of the the equipment is unknown. An 11% annual interest rate is typical of this transaction. The company uses the effective interest method to amortize interest expense and the straight-line method to estimate depreciation expense. a. Prepare the...
Most questions answered within 3 hours.
-
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 1 hour ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 3 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 3 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 5 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 5 hours ago -
In a study of the accuracy of fast food​ drive-through orders,
Restaurant A had 257 accurate...
asked 5 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 5 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 6 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 5 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 6 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 6 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 6 hours ago