Part a. Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimated useful...
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Part a. Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the company uses the straight-line method to depreciate fixed assets. Requlred: Prepare the Journal entry would Rlo Grande record If the equlpment Is scrapped after flve years ? Part b. On January 1, Hampton Company paid $48,000 for a new delivery truck. It was estimated that the truck would be driven 100,000 miles during the next 5 years, at which time it would have a salvage value of $3,000. During the first and second years, the truck was driven 22,000 and 18,000 miles, respectively. Requlred: How much Is accumulated depreclation usIng the units of output (mlles driven) method at the end of year 2? Part c. Zack Co. incurred the following costs related to equipment during November 2017. 1. Purchased equipment with a list price of $90,000 for $87,300. 2. Had the equipment installed and paid the installer S2,000. 3. Paid the freight bill for delivery of the equipment, S1,000. 4. Advertised a product that will be produced by the new equipment, $3,400. 5. Paid sales taxes of $3,800 on the purchase of the new equipment. Requlred: Calculate the capltallzed cost of the equlpm ent. Part d. Rio Grande Company purchased a delivery truck on January 1, 2017 for $75,000. The estimated useful life of the delivery truck is 5 years, the salvage value is $10,000, and the company uses the straight- line method to depreciate fixed assets. Requlred: Record the Journal entry that Rlo Grande would make at the end of the fifth year If the dellvery truck was sold for $6,800. Part a. Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the company uses the straight-line method to depreciate fixed assets. Requlred: Prepare the Journal entry would Rlo Grande record If the equlpment Is scrapped after flve years ? Part b. On January 1, Hampton Company paid $48,000 for a new delivery truck. It was estimated that the truck would be driven 100,000 miles during the next 5 years, at which time it would have a salvage value of $3,000. During the first and second years, the truck was driven 22,000 and 18,000 miles, respectively. Requlred: How much Is accumulated depreclation usIng the units of output (mlles driven) method at the end of year 2? Part c. Zack Co. incurred the following costs related to equipment during November 2017. 1. Purchased equipment with a list price of $90,000 for $87,300. 2. Had the equipment installed and paid the installer S2,000. 3. Paid the freight bill for delivery of the equipment, S1,000. 4. Advertised a product that will be produced by the new equipment, $3,400. 5. Paid sales taxes of $3,800 on the purchase of the new equipment. Requlred: Calculate the capltallzed cost of the equlpm ent. Part d. Rio Grande Company purchased a delivery truck on January 1, 2017 for $75,000. The estimated useful life of the delivery truck is 5 years, the salvage value is $10,000, and the company uses the straight- line method to depreciate fixed assets. Requlred: Record the Journal entry that Rlo Grande would make at the end of the fifth year If the dellvery truck was sold for $6,800.
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Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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