Equipment acquired on January 3, 2003, at a cost of $96,000, has an estimated useful life of
Question:
Equipment acquired on January 3, 2003, at a cost of $96,000, has an estimated useful life of 6 years and an estimated residual value of $6,000.
a. What was the annual amount of depreciation for the years 2003, 2004, and 2005, using the straight-line method of depreciation?
b. What was the book value of the equipment on January 1, 2006?
c. Assuming that the equipment was sold on January 2, 2006, for $38,000, journalize the entry to record the sale.
d. Assuming that the equipment had been sold on January 2, 2006, for $53,000 instead of $38,000, journalize the entry to record the sale.
Step by Step Answer:
a 2003 depreciation expense 15000 96000 6000 6 2004 depreciation expense 1500...View the full answer
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
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
-
Equipment acquired on January 3, 2007, at a cost of $265,500, has an estimated useful life of eight years and an estimated residual value of $31,500. (a) What was the annual amount of depreciation...
-
Equipment acquired on January 4, 2009, at a cost of $425,000, has an estimated useful life of nine years and an estimated residual value of $65,000. a. What was the annual amount of depreciation for...
-
Equipment acquired on January 3, 2004, at a cost of $96,000, has an estimated useful life of six years and an estimated residual value of $6,000. a. What was the annual amount of depreciation for the...
-
There is a mathematical puzzle called "Four Fours." In it, you use four 4s to make other whole numbers. Examples: You can make 61 (4+4)+4+4-6 Four Fourths You can also make 9! You Try! What other...
-
Given find a matrix B such that BHB = A. 2 oi 1
-
The lifetime (in days) of a certain electronic component that operates in a high-temperature environment is lognormally distributed with = 1.2 and = 0.4. a. Find the mean lifetime. b. Find the...
-
Use the nearest neighbor method to find a Hamilton cycle of relatively low weight beginning and ending at vertex \(D\) in Figure 12.240 and find its total weight. Give your answer in hours and...
-
Scott and Allison are married and file a joint tax return. Scott is a graduate student who works part-time and earned $15,000 in 2012. He is not eligible to participate in his employer's retirement...
-
Exercise 9 . 1 2 ( Algo ) Calculate gross profit, cost of goods sold, and selling price LO 9 . 2 , 9 - 3 MBil Incorporated had sales of $ 3 6 million for fiscal 2 0 2 2 . The company's gross profit...
-
Figure a, shows a uniform beam subject to a linearly increasing distributed load. The equation for the resulting elastic curve is (see Figure b) Use bisection to determine the point of maximum...
-
Jacobs Company replaced carpeting throughout its general offices. The old carpet was removed at a cost of $1,500 on March 15. The book value of the old carpet was $6,000 on March 15 ($18,000 original...
-
A printing press priced at $315,000 is acquired by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the...
-
For nearly 150 years, John Lewis has had a shop on London's Oxford Street. Customer 'footfall' is steady. The department store group's carefully nurtured and increasingly well-marketed reputation for...
-
The SMG Strategic Relationship Management (SRM) Framework provides a practical approach to creating and maintaining relationships with key stakeholders that optimizes the effects of service quality...
-
The following incorrect Trial Balance appeared in the books of Honey Pie, a sole trader in the confectionary business at 31 May 2024: 1. Folio Debit (R) Credit (R) R1 700 The following errors and...
-
Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business...
-
What is the running time of the following recursive function (specified as a function of the input value n)? First write the recurrence formula and then find its complexity. function(int n) { if(n =...
-
Given the followng program: public class Student Details { static int reward; int studentLevel; public void studentAge() { int age = 0; age=age +5; } } public static display() {...
-
Approximately how much time elapses between one crest reaching your ship and the next? A. \(3 \mathrm{~s}\) B. \(5 \mathrm{~s}\) C. \(7 \mathrm{~s}\) D. \(12 \mathrm{~s}\) Water waves are called...
-
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. $ 57.30 per unit $ 10.30 per unit $ 7.80 per...
-
Explain the problem with SET regarding testability. Is there anything that Social Exchange theorists could do to make the theory more testable? Use examples in your response.
-
What is the difference between realized and realizable? Give an example of where the concept of realizable is used to recognize revenue.
-
What is the difference between realized and realizable? Give an example of where the concept of realizable is used to recognize revenue.
-
What is the justification for the following deviations from recognizing revenue at the time of sale? (a) Installment sales method of recognizing revenue. (b) Recognition of revenue at completion of...
-
The balance sheet of ABC Ltd. on December 31, 2023, is provided below: Item Amount ($) Accounts Payable 1,610,000 Notes Payable 1,590,000 Accrued Expenses 1,470,000 Total Current Liabilities ?...
-
Company LMN has a contribution margin ratio of 25%. If total sales are $500,000, calculate the variable costs incurred. Evaluate the impact of changes in sales volume on variable costs and...
-
Accrued Expenses at Facebook Values: Accrued Salaries: $300,000 Accrued Rent: $50,000 Accrual Period: Monthly Requirements: Apply the conservatism principle to recognize accrued expenses. Calculate...
Study smarter with the SolutionInn App