#2 (b)

Question 3 of 5 1.43 / 4.3 View Policies Show Attempt History Current Attempt in Progress Ivanhoe uses the diminishing-balance method at one times the straight-line depreciation rate. Ivanhoe Limited purchased delivery equipment on March 1, 2019, for $141,250 cash. At that time, the equipment was estimated to have a useful life of five years and a residual value of $10,710. The equipment was disposed of on November 30, 2021. Ivanhoe uses the diminishing-balance method at one times the straight-line depreciation rate, has an August 31 year end, and makes adjusting entries annually. (a) V Your answer is correct. Record the acquisition of equipment on March 1, 2019. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 1 Equipment 141,250 Cash 141,250 e Textbook and Media List of Accounts Attempts: 1 of 5 used (b) Record depreciation at August 31, 2019, 2020, and 2021. (List all debit entries before credit entries. Credit account titles areQuestion30f5 1.43/43 E (b) Record depreciation at August 3 1, 201 9, 2020, and 202 1. {List all debit entries before credit entries. Creditaccount titles are automatically indented when the amount is entered. Do not indent manually. if no entry is required. select "No Entry\" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, ex. 5275.) Date Account Titles and Explanation Debit Credit : S : Z S : Z S : Question 2 of 5 3.15142 E View Policies Show Attempt History Current Attempt in Progress Carla Vista Co. purchased equipment on March 31, 2021, at a cost of $224,000. Management is considering the merits of using the diminishing-bala nce or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,800 units in 2021; 20,400 units in 2022; 19,800 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Carla Vista has a December 31 year end. (a) V Your answer is correct. Prepare separate depreciation schedules for the life of the equipment using: {Round depreciation per unit to 2 decin places. 88. 5.28 and nal answers to 0 decimal places. as. 5.275.) Straight-line method: Depreciable Depreciation Accumulated Carrying Year Amount Expense Depreciation Amount 2021 $ 216,000 $ 40,500 $ 40,500 2022 2 16,000 54,000 94,500 2023 2 16,000 54,000 148,500 75,500 2024 2 16,000 54,000 202,500 2025 2 16.000 13,500 2 16,000 Question 2 of 5 3.15 / 4.2 Double-diminishing-balance method: Opening Carrying Depreciation Accumulated Carrying Year Amount Expense Depreciation Amount 224,000 2021 $ 224,000 84,000 84,000 140,000 2022 140,000 70,000 154,000 70,000 2023 70,000 35,000 189,000 35,000 2024 35,000 17,500 206,500 17,500 2025 17,500 9,500 216,000 3,000 Units-of-production method: Depreciation Accumulated Carrying Year Units-of-Production Expense Depreciation Amount 224,000 2021 14,800 39,960 39,960 184,040 2022 20,400 55,080 95,040 128,960 2023 19,800 53,460 148,500 75,500 2024 20,000 54,000 202,500 21,500 2025 5,000 13,500 216,000 8,000Question 2 of 5 1.75 l 3.5 Coronado Construction Ltd. borrowed $350,000 from Atco Finance Ltd. on October 1, 2020, by issuing a nine-month note payable at 5% interest payable at maturity. Both companies have a December 31 year end and make adjusting entries annually. (a) V Your answer is correct. For Coronado Construction, record {1) the receipt of the $350,000 cash and the issuing of the note payable on October 1, 2020; {2} the accrual of interest on December 31, 2020; and (3) the payment of the note and interest on July 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 3 Account Titles and Explanation {To record interest} :1 V Notes Payable Interest Payable Cash (To record repayment of bank loan) Debit Credit : : : : : : Question 1 of 5 > 1.75 / 3.5 IE (b) For Atco Finance, record (1) the payment of the $350,000 cash and the receipt of the note receivable on October 1, 2020; (2) the accrual of interest on December 31, 2020; and (3) the collection of the note and interest on July 1, 2021. (Hint: Atco Finance uses a Notes Receivable account to record its loans.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit V v (To record interest) V (To record collection of loan)Question 2 of5 1.17 13.5 '== Current Attempt in Progress On September 30, 2021, Sheridan Corporation received a three-year, 4%, $1,300,000 bank loan. The terms provide for payment of the bank loan with quarterly instalment payments of $115,503, starting on December 31. Sheridan has a November 30 year end and records adjusting entries annually. (3) V Your answer is correct. Record the receipt of the ba n k loan on Septem ber 30, 202 1. ( Round answers to the nearest whole dollar. es. 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit Bank Loan Payable |:| 1.300.000 eTextbook and Media List of Accounts Attempts: 2 of 5 used (b) Record the accrual of interest expense on November 30, 2021. (Round answers to the nearest whole dollar. e3. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit II-.. n I I Question 2 of5 1.17 l 3.5 'E Bank Loan Payable 1,300,000 eTextbook and Media List of Accounts Attempts: 2 of 5 used (b) Record the accrual of interest expense on November 30, 2021. (Round answers to the nearest whole dollar: e4. 5.275. Credit account titles are automatically indenwd when the amount is entered. Do not indent manually List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit Nov-3 :l E S :E: Question 5 of 5