What should be the journal entry to record the disposal of the equipment?
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A: Account Title and Explanation Debit Credit Depreciation expense $ Accumulated…
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A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($325000 - $40000)…
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A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
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A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…
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A: Given that: Original cost of Equipment = P20,00,000 Accumulated Depreciation = P18,00,000 Face value…
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A: Depreciation is an amortization expense of the asset's cost over the useful life of an asset which…
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A: Depreciation Rate for Double-Declining-Balance Method = Straight-Line Method Rate x 2 = (100 /…
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A: Depreciation expense under the straight-line method is computed by: = (Historical Cost - Salvage…
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A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
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A: Solution Working note Carrying amount of equipment = original cost - accumulated depreciation. =…
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A: Depreciation is a term used in accounting to describe a method of allocating the cost of a tangible…
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A: Whenever a property is sold more than its carrying amount or value, a profit or gain on the sale of…
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A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: amela Company acquired a welding machine on account with an invoice price of P5,000,000 subject to a…
A: Depreciation under the Straight Line method is computed under the following method: Depreciation =…
Q: Jamela Company acquired a welding machine on account with an invoice price of P5,000,000 subject to…
A: Cost of asset includes the invoice price less any cash discount and all other costs which are…
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A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…
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A: The cost which is incurred to bring the machine into a working form will be capitalized
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A: Answer - Step 1 - Calculation of Unrecognized Loss - Particulars Amount Book value of…
Q: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value…
A: Depreciation can be defined as fall in the asset’s historical value each year. Depreciable amount is…
Q: Burrell Company purchased a machine for $21,000 on January 2, 2019. The machine has an estimated…
A: Straight line method: Straight line basis is a method of calculating depreciation and amortization,…
Q: . Calculate annual depreciation expense for the first four years. $fill in the blank…
A:
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A: When assets are purchased and a non-interest-bearing note is issued then the difference between the…
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A: Straight line method of depreciation charge depreciation equally over the useful life of the assets;…
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A: Depreciation is a way to reduce the cost of asset over a period of time due to usage, wear &…
Q: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value…
A: Depreciation expenses. = (Purchase price – Salvage value) / Life years Revised depreciation = [Book…
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A: Answer:- Depreciation meaning:- A reduction in the worth of an asset is generally referred to as…
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A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
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A: Depreciation expense per mile = (purchase cost - salvage value) x Estimated units-of-production =…
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Kylie Company has sold its old equipment with an original cost of $2,000,000 and
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- Please prepare the following joiurnal entries: Show all calcualtions Bought a van, paying $10500 cash as a down payment and signed a 10 month $32000, 9% note payable for the balanceThe company paid 750 to have its company logo printed on the side of the van. The residual value is $7500. The old van was sold for $7500; it cost $32000 and acculumated depreciation up to the date of disposal was $30000Reason Inc. sold its old equipment with original cost of P2,000,000 and accumulated depreciation of P1,800,000 for 3-year P250,000 note. The interest rate of the loan is 7% while the market rate of similar notes is 8%. The journal entry to record the disposal of the equipment would NOT include *On January 1, 2020, Techno Company sold a machine for RO15,000 cash. The Machine originally cost RO 56,000. As of January 1, 2020, it had accumulated depreciation of RO 35,000. Prepare the journal entry to record the sales of the Machine
- During the current year, Benguet Company purchased a secondhand machine at a price of P300,000. A cash down payment of P50,000 was made and a two-year, non interest bearing note was issued for the balance. Recent transactions involving similar machinery indicate that the used machine has a secondhand market value of P240,000. A new machine would cost P400,000. The following costs were incurred on the machine during the year: Cost of removing the old machine 2,000Cash proceeds form the sale of the old machine 1,200Cost of spare parts purchased and set aside from breakdowns during the first two years of normal use of the machine 20,000Cost of labor to install the machine 4,000Cost of testing the machine prior to use 1,800Cost of hauling the machine from the vendor’s place of business to the company’s premises 5,000Cost of repairing the damage to the machine when it was dropped during the installation 3,000Repairs incurred during the first year of operations 6,000Safety devices added to…During the current year, Polly Company purchased a second hand machine at a price of P5,000,000. A cash payment of P1,000,000 was made and a two-year, non-interest bearing note was issued for the balance of P4,000,000. Recent transactions involving similar machine indicate that the used machine has a second hand market value of P3,800,000. A new machine would cost P6,500,000. The following costs were incurred during the year: Cost of removing old machine that is replaced Cash proceeds from the sale of the old machine replaced General overhaul and repairs to recondition machine prior to use Cost of spare parts to cover breakdowns Cost of installation Cost of testing machine prior to use Cost of hauling the machine from vendor to company premises Cost of repairing damage to machine caused when the machine was dropped during installation Repairs incurred during the first year of operation Safety device added to the machine Cost of training workers to operate the machine What amount should…Finney Company sold a machine for $15,000. The machine originally cost $35,000 in 2018 and $8,000 was spent on a major overhaul in 2021 (charged to the Equipment account). Accumulated Depreciation on the machine to the date of disposal was $28,000. Prepare the appropriate journal entry to record the disposition of the machine.
- During the current year, Adrienne Company purchased a second hand machine at a price of P5,000,000. A cash payment of P1,000,000 was made and a two-year, noninterest bearing note was issued for the balance of P4,000,000. Recent transactions involving similar machine indicate that the used machine has a second hand market value of P4,500,000. A new machine would cost of P6,500,000. The following costs were incurred during the year. Cost of removing old machine that is replaced Cash proceeds from the sale of the old machine replaced General overhaul and repairs to recondition machine prior to use Cost of spare parts to cover breakdown 350,000 100,000 220,000 80,000 Cost of installation 180,000 Cost of testing machine prior to use Cost of hauling the machine from vendor to entity premises Cost of repairing damage to machine caused when the machine was dropped during installation 150,000 40,000 50,000 Repairs incurred during the first year of operation Safety device added to the machine…Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. The company purchased the new car on May 1, 2018. The purchase price was $22,600 and had a useful life of 3 years. The salvage or residual amount is 5% of the purchase price. Round to the nearest whole dollar. Calculate the total depreciation expense in 2018, 2019, 2020, and 2021 using the straight-line method.On January 1, 2020, Techno Company sold a machine for RO15,000 cash. The Machine originally cost RO 56,000. As of January 1, 2020, it had accumulated depreciation of RO 35,000. Prepare the journal entry to record the sales of the Machine Select one: О. 15,000 35,000 Cash Accumulated Depreciation Loss on disposal of Machine Machine 6,000 56,000 O b. Accumulated Depreciation 35,000 Equipment 35,000 O c. Truck 56,000 直。 كتب هنا ل لبحث
- White Mountain Supply Company purchases warehouse shelving for $18,500. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 9 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving? (b) What is the accumulated depreciation (in $) after the third year? (c) What is the book value of the shelving (in $) after the fifth year?Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. The company purchased the new car on May 1, 2018. The purchase price was $22,600 and had a useful life of 3 years. The salvage or residual amount is 5% of the purchase price. Round to the nearest whole dollar. Calculate the total depreciation expense in 2018, 2019, 2020, and 2021 using the Double-Declining Balance Method.Duck Pond Golf Club purchased equipment on January 1, 2018, for $48,282. Suppose Duck Pond Golf Club sold the equipment for $36,000 on December 31, 2020. Accumulated Depreciation as of December 31, 2020, was $22,284. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) Course Chat Time 1 GB V 19