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4. On January 1,2010 Madison Co. purchased a vehicle for $68,000 cash. The useful life is expected to be 8 years with an estimated salvage
4. On January 1,2010 Madison Co. purchased a vehicle for $68,000 cash. The useful life is expected to be 8 years with an estimated salvage value of $4000. At the end of year 6 , Madison decided to increase the useful life to 10 years (in total) and reduce the salvage value to $2000 a. Journalize the purchase b. Journalize year one's depreciation c. Calculate the new annual depreciation after year 6 5. Keaubie Co. retired a piece of equipment that was fully depreciated and had no salvage value. The cost of the equipment was $75,000. Journalize the retirement of this asset. 6. Keaubie Company retired some equipment that cost $65,000 and had accumulated depreciation of $60,000. Journalize the retirement of the equipment. Instructions: Journalize each transaction below: 1. Changed oil and oil filter on truck, $100; Installed equipment on truck, $3,200; Replaced motor on equipment, $3,900. Paid cash for all. 2. Land was purchased costing $105,000; a building was removed at a cost of $4,000, with proceeds of $550 from salvaged materials; broker fees were $3,800; attorney's fees were $4,000; journalize the land purchase (Paid cash). 3. Machinery was purchased on June 1 for $230,000 cash. It had a salvage value of $12,000 and an estimated useful life of 10 years. Journalize the purchase and the first year's depreciation. 7. Keaubie Co. sold office equipment that originally cost $32,000, for $3,500 cash. The equipment had accumulated depreciation in the amount of $27,000. Record the sale of the equipment. 8. Assume Keaubie Co. sold the equipment in #7 for $5,000 cash and had accumulated depreciation in the amount of $28,500. Record the sale
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