problems 1 and 2 please Problem I Shamber Inc. purchased equipment on January 1, 2018, at a total cost of $68,000. At the time of purchase, management estimated that the equipment would have a salvage value of $8,000 and an estimated useful life of 6 years. The company recorded depreciation through December 31, 2020, using the straight-line method. On January...
Listed below are a series of transactions that occurred during the first three years of operations for Freeman Fields Company: 1. On January 1, 2016, Freeman paid $50,000 to acquire a 10-year patent on a lawn fertilizer technology On January 1, 2016, Freeman purchased a warehouse for S600,000 cash and a $240,000, 8-year note payable. The warehouse is estimated to...
$86, JUL GENERAL LEDGER Obj. 1, 2, 3 PR 9-5A Transactions for fixed assets, including sale The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining- balance method of depreciation is used. Year 1 Jan. 4. Purchased a used delivery truck for $28,000,...
The following transactions, adjusting entries, and closing entries were completed by Legacy Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. year 1 Jan. 4. Purchased a used delivery truck for $29,200, paying cash. Nov. 2. Paid garage $650 for miscellaneous repairs to the truck. Dec. 31....
Jijang Excavations Ltd. (JEL) operates specialized equipment for installing natural gas pipelines. JEL, which has a December 31 year end, began 2020 with a single piece of equipment that had been purchased on January 1, 2017, for $45,000 and a truck that had been purchased on January 1, 2019, for $70,000. When the equipment was purchased, JEL’s management had estimated...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $250,200 cash. Manchester incurred $1,440 of removal and selling costs on disposal. The equipment cost $450,000 when it was purchased on January 2, 2018. Its estimated residual value and useful life were $72,000 and 10 years, respectively. Manchester uses straight-line depreciation and records annual depreciation on each...
On January 1, 2021, Company A leased equipment from Company B. The lease agreement specifies seven annual payments of $50,000 beginning January 1, 2021, the beginning of the lease, and at each December 31, thereafter. At the end of the seven-year lease term the equipment will be returned to the lessor and is expected to have a residual value of...
Question 16 (1 point) Clark Oil and Gas incurred costs of $15.3 million for the rights to extract resources from a natural gas deposit. The company expects to extract 8 million cubic feet of natural gas during a six-year period. Natural gas extracted during years 1 and 2 were 800,000 and 1,600,000 cubic feet, respectively. What was total depletion for...
Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,000,000. This cost figure included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total $1,850,000 30,000 20,000 100,000 $2,000,000 The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine...
Collins Corporation purchased office equipment at the beginning of 2016 and capitalized a cost of $1,902,000. This cost figure included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total $1,760,000 21,000 11,000 110,000 $1,902,000 The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine...