Sun Industries adopts the cost model as its accounting policy in subsequently measuring its property, plant,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sun Industries adopts the cost model as its accounting policy in subsequently measuring its property, plant, and equipment, and uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2009, the company purchased a machine costing $112,000. The machine's useful life was estimated to be 12 years with a residual value of $17,900. Depreciation for partial years is recorded to the nearest full month. In 2013, after almost five years of experience with the machine, management decided to revise its estimated life from 12 years to 20 years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recording annual depreciation expense for the year ended December 31, 2013. a. Prepare journal entries in chronological order for the above events, beginning with the purchase of the machinery on January 11, 2009. Show separately the recording of depreciation expense in 2009 through 2013. (Do not round intermediate calculations. Omit the "$" sign in your response.) General Journal Date 2009 Debit Credit Jan. 11 (Click to select) (Click to select) Dec. 31 (Click to select) (Click to select) 2010- 2012 Dec. 31 (Click to select) (Click to select) 2013 Dec. 31 (Click to select) (Click to select) Sun Industries adopts the cost model as its accounting policy in subsequently measuring its property, plant, and equipment, and uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2009, the company purchased a machine costing $112,000. The machine's useful life was estimated to be 12 years with a residual value of $17,900. Depreciation for partial years is recorded to the nearest full month. In 2013, after almost five years of experience with the machine, management decided to revise its estimated life from 12 years to 20 years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recording annual depreciation expense for the year ended December 31, 2013. a. Prepare journal entries in chronological order for the above events, beginning with the purchase of the machinery on January 11, 2009. Show separately the recording of depreciation expense in 2009 through 2013. (Do not round intermediate calculations. Omit the "$" sign in your response.) General Journal Date 2009 Debit Credit Jan. 11 (Click to select) (Click to select) Dec. 31 (Click to select) (Click to select) 2010- 2012 Dec. 31 (Click to select) (Click to select) 2013 Dec. 31 (Click to select) (Click to select)
Expert Answer:
Answer rating: 100% (QA)
Solution Sun Industries Cost of Machine 112000 Less Residual Value 179... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Swindall Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2007, the...
-
Swindall Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2014, the...
-
On December 31, the warranty liability was estimated to be $100,000. On January 16 of the following year, results of a study done before December 31 were received. These study results indicate that...
-
Consider a group of 12 employees of whom five are in management and seven do clerical work. Select at random a sample of size 4. What is the probability that there will be one manager in this sample?
-
Annual reports released by publicly held companies include a letter to the stockholders written by the chief executive officer, chairman of the board, or president. Analyze Online: Locate the Adobe...
-
A pipeline algorithm is implemented so that a stream of data elements of type T produced by a process P0 passes through a sequence of processes P1, P2, ., Pn - 1, which operates on the elements in...
-
Which of the following is not a characteristic that makes information useful? a. It is reliable. c. It is inexpensive. b. It is timely. d. It is relevant.
-
Salt Creek Golf Inc. was organized on July 1, 2017. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown on page 203. Instructions (a)...
-
Oakland Precision Products (OPP) manufactures and sells a variety of scales for the kitchen and office. OPP sells primarily to kitchenware stores, discount stores, and so on. Two of the scales it...
-
Which leadership concepts and models are most illustrative of how Steve Jobs led? Which leadership concepts and models are most illustrative of how Tim Cook leads now?
-
Use the graph to find the following. Q -61 65 (a) the domain of f (b) the range of f (c) the x-intercepts (d) the y-intercept (e) intervals on which f is increasing (f) intervals on which f is...
-
. On a Mac, processes are listed on the CPU tab; on Windows, select the Processes tab. A process corresponds to a program. Any programs that are currently running put a load on the CPU. A. What is...
-
Bob received 5 cipher blocks Co. C1, C2, C3, C4 encrypted by CBC. When he tried to decrypt it to get Po, P1, P2, P3, P4, he accidentally used X instead of C2. Pick all the plaintext blocks that will...
-
Address the Pros and Cons pertaining to the viability, effectiveness, and fairness of each tax method? (must list 2 pros and cons for each) A. The governor is proposing a change to state's sales tax...
-
What was an effective part of the content of the speech? What was the most effective part of the delivery of the speech? How could content be improved? How could delivery be improved?
-
1. Refer to the array A shown in Figure I for subsequent computations. You may replace the letters with the corresponding numbers, e.g., A=1, Z=26 to solve this question. However, you must present...
-
Count the number of prime numbers in a 2D integer array.in C++
-
Identify the most stable compound:
-
Herschel Inc. (Herschel) is a small chain of convenience stores. Herschel classifies its inventory into three categories: perishable items, packaged goods, and household items. On its balance sheet...
-
You are considering buying a small business from the person who currently owns and manages it. The current owner explains that the business is doing great and provides financial statements that...
-
What is goodwill? How does it arise?
-
Milton Company planned to produce 21,000 units of its only product during the year. Milton established the following standard cost data for this product prior to the beginning of the year: Assume...
-
In building factories to manufacture 50 -inch TV screens, how might companies build risk factors into their financial analyses?
-
Jacobs Company manufactures a single product and uses a standard costing system. The nature of its product dictates that it be sold in the period it is produced. Thus, no ending work in process or...
Study smarter with the SolutionInn App