Brainium Technologies showed the following information in its Property, Plant and Equipment Sub-ledger regarding a warehouse. During
Question:
Brainium Technologies showed the following information in its Property, Plant and Equipment Sub-ledger regarding a warehouse.
During 2014, it was determined that the original useful life on the warehouse doors should be reduced to a total of 12 years and that the residual value should be $23,100. On January 3, 2014, the furnace broke down unexpectedly. It was replaced the next day with a new one costing $39,000, purchased on account (the old furnace was scrapped). The new furnace had an estimated residual value of $7,500 and an estimated life of 16 years and would continue to be depreciated using the double-declining-balance method.
Required
1. Prepare the entry to record the purchase of the new furnace.
2. Calculate the total depreciation expense to be recorded on the warehouse for2014.
Warehouse: Date of Purchase Jan. 8/09 Jan. 8/09 Jan. 8/09 Jan. 8/09 Jan. 8/09 Jan. 8/09 Jan. 8/09 Depreciation Method SL SL SL SL SL DDB DDB Est. Residual Component Windows Doors Roofing Siding Framing/walls Furnace Misc. Cost S 51,750 105,000 43,500 54,000 222,000 27,000 61,500 564,750 Est. Life 15 yrs 20 yrs 10 yrs 25 yrs 30 yrs 10 yrs 5 yrs о- 0- 60,000 0- 7,500
Step by Step Answer:
2014 Jan 4 Warehouse Furnace new 39000 Accumulated Depreciation Warehouse Furnace 18153 1 Loss on Di...View the full answer
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Students also viewed these Accounting questions
-
Brainium Technologies showed the following information in its Property, Plant, and Equipment subledger regarding a warehouse. During 2020, it was determined that the original useful life on the...
-
A company showed the following information in its payroll register for the week ended March 16, 2015: 1. Prepare a general journal entry to record the payroll register information. 2. Prepare a...
-
A company showed the following information in its payroll register for the week ended March 16, 2015: 1. Prepare a general journal entry to record the payroll register information. 2. Prepare a...
-
Consider a situation with two firms that have marginal abatement cost functions The marginal damage function is again equal to D'(E)=d.E. Assume the regulator applies Monteros mechanism. Determine...
-
The graph of the concentration function c(t) is shown after a 7-mg injection of dye into a heart. Use Simpson's Rule to estimate the cardiac output. (mg/L) 4 02 4 6 8 10 12 14 (seconds)
-
Bleeker Company has the following merchandise account balances: Sales $195,000, Sales Discounts $2,000, Cost of Goods Sold $105,000 and Merchandise Inventory $40,000. Prepare the entries to record...
-
The following business transactions represent selected cash receipts (cash inflows) and cash payments (cash outflows) of Burlingame Tuxedo. A blank form is provided in the Working Papers. Work...
-
Metal Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required. At the beginning of 2016, the company expected to incur the...
-
Rami spent five years in an accounting educational program and successfully completed a rigorous accounting examination five years ago. Since then, he has worked for several accounting firms....
-
You have the choice of buying two processors: Processor 1 has a clock speed of 4.0 GHz with 32 KiB of L1 cache. Processor 2 has a clock speed of 2.0 GHz with 64 KiB of L1 cache. In order to decide...
-
The December 31, 2014, adjusted trial balance of Ondine Biomedical showed the following information:...
-
La Mancha Enterprises completed all of its March 31, 2014, adjustments in preparation for compiling its financial statements, which resulted in the following trial balance....
-
Consider the following monster rational function. Analyzing this function will synthesize many of the concepts of this and earlier sections. Given that -4 and -1 are zeros of the numerator, factor...
-
In Module 1, you outlined how you justified taking this course as an employee of a struggling organization. Organizational behavior sounded far too vague, and your boss was not instantly convinced...
-
Job 327 was recently completed. The following data have been recorded on its job cost sheet: Direct Materials: Direct Labor hours: $2,500 100 Direct Labor wage rate: $10.00 per hour The company...
-
Examine the use of magical realism in Latin American literature. How does this genre challenge traditional notions of reality and fantasy ?
-
Company acquires a delivery truck at a cost of $65,000 on January 1, 2022. The truck is expected to have a salvage value of $2,000at the end of its5-year useful life. Assuming the declining-balance...
-
Red Co. acquired 100% of Green Inc. on January 1, 2022. On January 1, Green had a patent with a book value of $200,000 and a fair value of $390,000, with a 10 year remaining useful life. How much...
-
Find each limit in Problems 3760. Note that LHpitals rule does not apply to every problem, and some problems will require more than one application of LHpitals rule. x + x-x-1 X lim x1x + 4x + 5x + 2
-
You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing...
-
The Howell Corporation has the following account balances (in millions): Prepare an income statement and a supporting schedule of cost of goods manufactured for the year ended December 31, 2017. (For...
-
Use the data for GlenTel Inc. in Exercise 13-16 to present a multiple-step income statement for 2020. You need not complete the earnings per share calculations. Exercise 13-16 Indicate where each of...
-
Ice Industries Inc. showed the following equity account balances at December 31, 2019: Common shares, unlimited shares authorized, 70,000 shares issued and outstanding...
-
Holt Developments Ltd. put an asset in service on January 1, 2018. Its cost was $270,000, its predicted service life was six years, and its expected residual value was $27,000. The company decided to...
-
The common stock and debt of Android Corp. are valued at $61 million and $30 million, respectively. Investors currently require a 14% return on the common stock and an 6% return on the debt. There...
-
A 1 2 5 6 contract includes any regulated futures contract, foreign currency contract, nonequity options, dealer equity options, and dealer securities futures contracts.
-
Go to the CDC website and look at the COVID-19 statistics that were gathered during the outbreak. What statistics do you think were interesting? How do you think these statistics were gathered? How...
Study smarter with the SolutionInn App