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5. On January 2, Year 1, a piece of equipment costing $3,900 was sold for $1,800....
Whitney Company purchased equipment on January 1, 2020, for $144,000. This equipment has a useful life...
Whitney Company purchased equipment on January 1, 2020, for $144,000. This equipment has a useful life of ten years and a residual value of $8,000. The company uses the straight-line depreciation method. In 2021, the company discovered that it had incorrectly recorded depreciation for 2020 as $9,280. Ignoring income taxes, record the correcting entry on January 1, 2021. Date Account Name Dr. Cr. Jan. 1, 2021 Answer Answer Answer Answer Answer Answer
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $369,000 cost of equipment purchased on January 1, 2018. The equipment’s life was expected to be five years with no residual value. Straight-line deprecia
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $369,000 cost of equipment purchased on January 1, 2018. The equipment’s life was expected to be five years with no residual value. Straight-line depreciation is used by PKE. Required:1. Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020.2. Prepare the correcting entry assuming the error was...
QUESTION 4 (10 marks) On April 1, 2015, Thunderbird Co sold a piece of equipment that...
QUESTION 4 (10 marks) On April 1, 2015, Thunderbird Co sold a piece of equipment that had cost $55,00 piece of equipment that had cost $35,000 on January 1, 2011. The equipment had a residual value of $5,000, a useful life 10 years, and double balance depreciation at twice the straight-line rate was used. On December 31, 2014, accumulated depreciation was $20.664. The asset was sold for $14,200. Prepare the journal entry to record depreciation up to the date of...
On January 1, Year 3, ABC Company discovered that equipment purchased on January 1, Year 1...
On January 1, Year 3, ABC Company discovered that equipment purchased on January 1, Year 1 for $20,000 was expensed. The equipment should have been capitalized and depreciated over five years with a $2,000 salvage value Prepare the correcting journal entry at January 1, Year 3. Assume a tax rate of 20 %. 4.
Problem 4-6A (Part Level Submission) Dao Vang, CPA, was retained by Martinez to prepare financial statements...
Problem 4-6A (Part Level Submission) Dao Vang, CPA, was retained by Martinez to prepare financial statements for April 2019. Vang accumulated all the ledger balances per Martinez's records and found the following. Martinez Trial Balance April 30, 2019 Credit Debit $4,100 3,100 700 10,300 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation-Equip. Accounts Payable Salaries and Wages Payable Unearned Service Revenue Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Advertising Expense Miscellaneous Expense Depreciation Expense $1,300 2,200 800 1,000...
Q3/ On January 1, 2016, Cullumber Corporation acquired equipment costing $77,440. It was estimated at that...
Q3/ On January 1, 2016, Cullumber Corporation acquired equipment costing $77,440. It was estimated at that time that the equipment would have a useful life of eight years and no residual value. The company uses the straight-line method of depreciation for its equipment, and its year end is December 31. A/ Calculate the equipment’s accumulated depreciation and carrying amount at the beginning of 2018. Equipment’s accumulated depreciation $ Carrying amount $ B/ What is the amount of the gain or...
Assume that Gonzalez Company purchased an equipment on January 1, 2014, for $78,000. The equipment had...
Assume that Gonzalez Company purchased an equipment on January
1, 2014, for $78,000. The equipment had an estimated life of six
years and an estimated residual value of $6,000. The company used
the straight-line method to depreciate the equipment.
Assume that Gonzalez Company sold the equipment on July 1, 2016,
and received $21,000 cash and a note for an additional $21,000.
Required:
1.
Make the journal entry to record depreciation on the equipment
through July 1, 2016. Record the sale...
(d) The company had acquired equipment costing S40,000 on January 1 of the current year. Suppose...
(d) The company had acquired equipment costing S40,000 on January 1 of the current year. Suppose that the depreciation on this equipment was calculated to be $2,000 for the current year Debit and credit the accounts affected. Ensure the equation still balances and debits = credits. Assets Liabilities Stockholders' Equity (e) On December 1 of the current year, the company had sold S500 in gift certificates for decorating services to a customer. On December 31 of the current year, the...
Knowledge Check 01 On January 1 Truesdale, Inc., purchased a piece of machinery for use in...
Knowledge Check 01 On January 1 Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the stralght-line method, the amount of depreciation that should be recorded during year 1, is approximately Knowledge Check 01 On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of...
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the...
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $357,000 cost of equipment purchased on January 1, 2018. The equipment’s life was expected to be five years with no residual value. Straight-line depreciation is used by PKE. Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020. 2. Prepare the correcting entry assuming the...
QUESTION 4 (10 marks) On April 1, 2015, Thunderbird Co sold a piece of equipment that had cost $55,00 piece of equipment that had cost $35,000 on January 1, 2011. The equipment had a residual value of $5,000, a useful life 10 years, and double balance depreciation at twice the straight-line rate was used. On December 31, 2014, accumulated depreciation was $20.664. The asset was sold for $14,200. Prepare the journal entry to record depreciation up to the date of...
On January 1, Year 3, ABC Company discovered that equipment purchased on January 1, Year 1 for $20,000 was expensed. The equipment should have been capitalized and depreciated over five years with a $2,000 salvage value Prepare the correcting journal entry at January 1, Year 3. Assume a tax rate of 20 %. 4.
Problem 4-6A (Part Level Submission) Dao Vang, CPA, was retained by Martinez to prepare financial statements for April 2019. Vang accumulated all the ledger balances per Martinez's records and found the following. Martinez Trial Balance April 30, 2019 Credit Debit $4,100 3,100 700 10,300 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation-Equip. Accounts Payable Salaries and Wages Payable Unearned Service Revenue Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Advertising Expense Miscellaneous Expense Depreciation Expense $1,300 2,200 800 1,000...
Assume that Gonzalez Company purchased an equipment on January
1, 2014, for $78,000. The equipment had an estimated life of six
years and an estimated residual value of $6,000. The company used
the straight-line method to depreciate the equipment.
Assume that Gonzalez Company sold the equipment on July 1, 2016,
and received $21,000 cash and a note for an additional $21,000.
Required:
1.
Make the journal entry to record depreciation on the equipment
through July 1, 2016. Record the sale...
(d) The company had acquired equipment costing S40,000 on January 1 of the current year. Suppose that the depreciation on this equipment was calculated to be $2,000 for the current year Debit and credit the accounts affected. Ensure the equation still balances and debits = credits. Assets Liabilities Stockholders' Equity (e) On December 1 of the current year, the company had sold S500 in gift certificates for decorating services to a customer. On December 31 of the current year, the...
Knowledge Check 01 On January 1 Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the stralght-line method, the amount of depreciation that should be recorded during year 1, is approximately Knowledge Check 01 On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of...
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