Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(1) A company purchased a truck on January 1, 2017 at a cost of $70,000. The truck had an estimated useful life of 5 years

(1) A company purchased a truck on January 1, 2017 at a cost of $70,000. The truck had an estimated useful life of 5 years and an estimated salvage value of $10,000. The company uses the straight-line method of depreciation. Determine the book value of the truck on December 31, 2021.

(2) A company acquired equipment on April 1, 2020 for $160,000. The company estimates the useful life for the equipment is 400,000 units and the estimated salvage value is $60,000. If the company uses the units-of-activity method of depreciation, calculate the depreciation expense for 2020 if 8,000 units are produced.

(3) A company purchased factory equipment for $150,000. It is estimated that the equipment will have a $30,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, calculate the amount of annual depreciation recorded for the third year after purchase.

(4) On June 30, 2021, a company sold an old equipment for $24,000. The equipment originally cost $36,000 and had accumulated depreciation to the date of disposal of $15,000. Determine gain or loss from the disposal and Prepare the journal entry on the date of sale.

C. Prepare the entry to record bad debts expense for the period

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Understanding And Practice

Authors: Robert Perks

4th Edition

0077139135, 978-0077139131

More Books

Students also viewed these Accounting questions

Question

Understand some techniques for evaluating the HRM function

Answered: 1 week ago