The following assets are owned by the Dinnell Company: In the year of acquisition and retirement of
Question:
The following assets are owned by the Dinnell Company:
In the year of acquisition and retirement of an asset, the company records depreciation for one-half year. During 2008, asset A was sold for $7,000.
Required
Prepare the journal entries to record depreciation on each asset for 2005 through 2008 and the sale of assetA.
Asset Year purchased Cost Expected life Residual value Depreciation method Straight-line Sum-of-the-years-digits Double-declining-balance 2005 $20,000 5 years $2,000 2006 $40,000 8 years 2007 $100,000 10 years $10,000
Step by Step Answer:
2005 A Straightline depreciation 3600 per year Depreciation Expense 3600 x 1800 Accumulated Deprecia...View the full answer
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
The following assets are owned by different Canadian taxpayers who hold no other foreign investments at any time during the year. All amounts are in Canadian dollars. For each asset, determine...
-
Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one- half year. During 2017, Asset A was sold for $ 7,000....
-
The following assets are to be transferred under section 85 for consideration including common shares plus "boot" as indicated below: ** Indefinite life REQUIRED (A) Compute the minimum possible...
-
Given the following information set up the problem in a transportation table and solve for the minimum-cost plan: Minimum total cost? Demand 550 700 750 Capacity 500 500 500 Regular Overtime 50 50...
-
Refer to the information from Problem 10.49, Parts 1, 2, and 3. The budget indicates that the company is likely to incur a loss during the next period. The accountant asks you to assist him in...
-
Describe the sustainability principles marketers can use to operate in a responsible and ethical manner?
-
A call option is currently selling for $10. It has a strike price of $80 and three months to maturity. What is the price of a put option with a $80 strike and three months to maturity? The current...
-
Which countries appear to have benefited the most from international trade during the last few decades? What policies do these countries seem to have in common? Does their experience lend support for...
-
P1. Transaction Analysis; Journal Entries; Adjusting Journal Entries. Jester Entertainment Company began operations on January 1, 2018. The company had the following transactions in its first year of...
-
Certain radial tires had useful lives of 35,200, 41,000, 44,700, 38,600, and 41,500 miles. Assuming that these data can be looked upon as a random sample from an exponential population, use the...
-
The Heist Company purchased a machine on January 2, 2007 and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of...
-
The Cheadle Company purchased a fleet of 20 delivery trucks for $8,000 each on January 2, 2007. It decided to use composite depreciation on a straight-line basis, and calculated the depreciation from...
-
The following preliminary unadjusted trial balance of Seats-For-You Co., a sports ticket agency, does not balance: When the ledger and other records are reviewed, you discover the following: (1) the...
-
Several years ago, Walmart (an American corporation) contracted with a company in Bangladesh to produce clothing. The legal requirements for building codes and worker safety are less strict in...
-
Wilfred and Ariane have been getting tired of listening to their neighbour Harpreet bragging about his investing prowess. Six months ago Harpreet put his entire investment portfolio of $110,000 into...
-
a) Discuss the 5 ways to finance the international trade receivables, which is also common ways to finance the trade for a short-term period. b) What are the 3 types of relationship between the...
-
The records of a fancy shoe store show that 60% of customers making a purchase pay by credit card. Suppose 10 customers purchased shoes from the store yesterday morning. i. What is the probability...
-
Use the ratios below to answer the following questions. You must support and be sure to consider all relevant ratios. A B Return on assets (%) 7.4% 13.9% 12.8% Profit margin (%) 8.2% 5.3% 13.3% Gross...
-
The pupil of the human eye can vary in diameter from \(2.00 \mathrm{~mm}\) in bright light to \(8.00 \mathrm{~mm}\) in dim light. The cye has a focal length of about \(25 \mathrm{~mm}\), and the...
-
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...
-
Ionization energies can be determined for molecules and atoms. Draw the molecular orbital diagrams for NO and CO, and predict which compound has the lower ionization energy.
-
Fielder Company obtained land by issuing 2,000 shares of its $10 par value common stock . The land was recently appraised at $85,000. The common stock is actively traded at $40 per share. Prepare the...
-
Fielder Company obtained land by issuing 2,000 shares of its $10 par value common stock . The land was recently appraised at $85,000. The common stock is actively traded at $40 per share. Prepare the...
-
Fielder Company obtained land by issuing 2,000 shares of its $10 par value common stock . The land was recently appraised at $85,000. The common stock is actively traded at $40 per share. Prepare the...
-
In business combination, the fair value of combinee plant assets was $ 850,000 and the carrying amount of plant assets was $ 750,000. The journal entry to allocate liquidated company to identifiable...
-
Brookdale Hospital hired an inexperienced controller early in 20X4. Near the end of 20X4, the board of directors decided to conduct a major fund-raising campaign. They wished to have the December 31,...
-
Please prepare a summary of the key tools. You should think about your tool summary set up and determine what is the most efficient way for you to prepare the summary. Name of tool Purpose of tool...
Study smarter with the SolutionInn App