On January 1, 2024, Apex Inc.'s ledger shows its long-lived asset of $79,000 (at cost) and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2024, Apex Inc.'s ledger shows its long-lived asset of $79,000 (at cost) and accumulated depreciation of $28,125. When the capital asset was purchased, Apex Inc. estimated that its useful life would be 12 years. On July 1, 2024, Apex Inc. paid $18,000 for property betterment and, as a result, it estimated its residual value had increased from $4,000 to $6,000. In addition, the useful life had increased by 3 years. Apex Inc. uses straight-line depreciation. On October 1, 2026, Apex Inc. sold the long-lived asset for $45,000. Requirements 1. What was the age of the long-lived asset? What was the annual depreciation amount? 2. Prepare the journal entry to record the betterment. 3. Prepare the adjusting entry for the depreciation expense at the end of the year. 4. What is the impact on the statement of earnings after the betterment has completed? 5. Prepare the journal entry to record the disposal of the long-lived asset. On January 1, 2024, Apex Inc.'s ledger shows its long-lived asset of $79,000 (at cost) and accumulated depreciation of $28,125. When the capital asset was purchased, Apex Inc. estimated that its useful life would be 12 years. On July 1, 2024, Apex Inc. paid $18,000 for property betterment and, as a result, it estimated its residual value had increased from $4,000 to $6,000. In addition, the useful life had increased by 3 years. Apex Inc. uses straight-line depreciation. On October 1, 2026, Apex Inc. sold the long-lived asset for $45,000. Requirements 1. What was the age of the long-lived asset? What was the annual depreciation amount? 2. Prepare the journal entry to record the betterment. 3. Prepare the adjusting entry for the depreciation expense at the end of the year. 4. What is the impact on the statement of earnings after the betterment has completed? 5. Prepare the journal entry to record the disposal of the long-lived asset.
Expert Answer:
Answer rating: 100% (QA)
Answer 1 To determine the age of the longlived asset we need to calculate the number of years from t... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0133375534
2nd Canadian edition
Authors: Jeffrey Waybright, Robert Kemp, Sherif Elbarrad
Posted Date:
Students also viewed these accounting questions
-
1 Skipped Provide the missing data in the following table for a distributor of martial arts products: Note: Enter "Turnover" and "ROI" answers to 1 decimal place. Sales Division Alpha Bravo Charlie $...
-
On July 1, 2015, Yama Inc.'s ledger shows its capital assets at $144,000 (at cost) and accumulated depreciation of $55,000. When the capital assets were purchased, Yama estimated that their useful...
-
On January 1, 2014, Nami Inc.s ledger shows its capital asset of $79,000 (at cost) and accumulated depreciation of $28,125. When the capital asset was purchased, Nami estimated that its useful life...
-
Find the minimum and maximum values of the function subject to the given constraint. f(x, y) =xy, 4x +9y = 32
-
A bond's credit rating provides a guide to its risk. Long-term bonds rated Aa currently offer yields to maturity of 7.5%. A-rated bonds sell at yields of 7.8%. Suppose that a 10-year bond with a...
-
Find the rms speed of a nitrogen molecule (M = 28 kg/kmol.mml) in air at 0 C.
-
Question: You are the president of Turbocharge, Inc., a publicly traded company. You have been buying stock recently because you think the company's product-a more efficient hybrid engine-is very...
-
Jims Outfitters, Inc., makes custom fancy shirts for cowboys. The shirts could be flawed in various ways, including flaws in the weave or color of the fabric, loose buttons or decorations, wrong...
-
(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zerc variance).) Actual Costs Spending 525 units Variance Flexible Budget 525...
-
State and explain whether the following items of income derived during the year of assessment 2018/19 are chargeable to Hong Kong profits tax: (a) Sums received by a foreign film production company...
-
How is the evolution of language reflected in the anatomy of the human brain and throat?
-
What is an adaptation?
-
What is the relative significance of relative and absolute brain size in trying to understanding the evolution of brain and behavior?
-
According to a Labour Force Survey in a country, total employment increased by around 1.35 million workers between 2014 and 2020, but the number of unemployed workers increased by 350,000. a. How are...
-
What are the two primary modes of speciation?
-
Bonita Industries is evaluating its Piquette division, an investment center. The division has a $ 6 0 0 0 0 controllable margin and $ 5 2 0 0 0 0 of sales. What will Bonita\'s average operating...
-
What are technical skills At what level are they most important and why?
-
How are the financial statements of a manufacturer different from those of a merchandiser with respect to inventory?
-
Teddy Sargent opened an accounting firm on May 1, 2015. During the month of May the business completed the following transactions: May 1 The business sold $80,000 of shares to open the firm, Sargent...
-
Smile Maids, Inc.'s trial balance on February 28, 2015, shows the following: Smile Maids, Inc. completed the following transactions in March: Mar 2 Signed a contract worth $1,200/month for a year to...
-
SAS No. 99 gives what ways assets may be misappropriated?
-
Develop a reality T.V. show involving accountants (e.g., forensic accountants).
-
How may misappropriations be accomplished?
Study smarter with the SolutionInn App