On January 2, 2018, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residual value of $32,250. The expenditures made to acquire the asset were as follows: Purchase price $ 159,500 Freight charges 2,400 Installation charges 4,500 Jackson’s policy is to use the double-declining-balance (DDB)...
Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances: Manufacturing equipment $ 132,000 Accumulated depreciation through 2019 76,000 During 2020, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 2, 2020, that improved...
Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through 2019 $110,000 58,500 During 2020, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 2, 2020, that improved efficiency...
Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through 2019 $120,000 63,000 During 2020, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 2, 2020, that improved efficiency...
The following are some transactions of Sheridan Company for 2021. Sheridan Company uses straight-line depreciation and has a December 31 year end. Apr. 1 Retired a piece of equipment that was purchased on January 1, 2012, for $48,000. The equipment had an expected useful life of 10 years with no residual value. July 30 Sold equipment for $1,300 cash. The...
wiater company operates a small manufacturing facility. on january 1 2018, an asset account for the company showed the following balances: Equipment 344,000 accumulated depreciation (beginning of year) 212,000 during the fiest week of jan 2018 the following expenditures were incurred repairs and maintenence: routine repairs/maintenece 3550 major overhaul for improved effeciency 41,000 The equipment is being depreciated on a...
Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of 2016, an asset account for the company showed the following balances: Equipment............................................. $35,000 Accumulated depreciation through 2015......... 132,000 During 2016, the following expenditures were incurred for the equipment: Routine maintenance and...
The non-current asset section of Zara Berhad at 31 December 2017 is as follows: Property, Plant and Equipment RM Land 65,000 Buildings (RM100,000 cost less RM2,000 depreciation) 98,000 Motor Vehicle (RM84,000 cost less RM28,800 depreciation) 55,200 Plant and Machineries (RM290,000 cost less RM134,800 depreciation) 155,200 Note: The company uses the straight-line depreciation method for all depreciable assets. The company adopts...
Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances Equipment Accumulated Depreciation (beginning of the year) $305,000 192,000 During the first week of January 2018, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved...
the journal entry to write down inventory under the lower of cost or net realizable value rule results in a debit to cost of goods sold and credit to inventory true E8-6 8-2, 8-3 Recording Depreciation and Repairs (Straight-Line Depreciation) Manrow Growers. Ine.. owns equipment for sowing and harvesting its organic fruit nuts that are sold to local restaurants and...