Accounting lab
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $220,800 has an estimated useful life of 8 years and an estimated residual value of $28,800. a. What was the annual amount of depreciation for the Years 13 using the straight-line method of depreciation? Year Depreciation Expense Yam $:] Year 2 $3 Year 3 $3 b What was the book value of the equipment on January 1 of Year 4? C c. Assuming that the equipment was sold on January 3 of Year 4 for $141,400, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Jan.3 v][ '3: '3: '#L d. Assuming that the equipment had been sold on January 3 of Year 4 for $151,800 instead of $141,400, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Jant3 7:: '3: '#L '3: Fair Value Journal Entries, Trading Investments The investments of Charger Inc. include a single investment: 18,500 shares of Raiders Inc. common stock purchased on February 24, 20Y1, for $46 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, 20Y1, balance sheet date, the share price had increased to $52 per share. a. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, 20Y1. If an amount box does not require an entry, leave it blank. 20Y1 Feb. 24 20Y1 Dec. 31 b. How is the unrealized gain or loss for trading investments reported on the financial statements? The unrealized gain or unrealized loss for trading investments is disclosed in the asFair Value Journal Entries, Trading Investments Jets Bancorp Inc. purchased a portfolio of trading securities during 20Y3. The cost and fair value of this portfolio on December 31, 20Y3, was as follows: Name Number o Total Cost Total Fair Value Dolphins Inc. 1,600 $28,800 $32,000 Marino Company 1,400 35,000 30,800 Namath Company 600 21,000 19,800 Total $84,800 $82,600 Journalize the entry to record the adjustment of the trading security portfolio to fair value on December 31, 20Y3. If an amount box does not require an entry, leave it blank. 20Y3 Dec. 31 88Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $3,600. The equipment was used for 7,200 hours during Year 1, 5,400 hours in Year 2, and 5,400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. Round the final answers for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 Year 2 Year 3 A tA Total $ 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the three-year life of the equipment?Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $54,540. The equipment was expected to have a useful life of three years, or 3,780 operating hours, and a residual value of $1,620. The equipment was used for 700 hours during Year 1, 1,300 hours in Year 2, 1,100 hours in Year 3, and 680 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining- balance method. Note: FOR DECLINING BALANCE ONLY, round the nal multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 Year 2 Year 3 hum-w Year 4 b. Units-of-activity method Year Amount Year 1 Year 2 Year 3 \"(QM-M Year 4 c. Double-declining-balance method Year Amount v\". 1 t Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining- balance method. Note: FOR DECLINING BALANCE ONLY, round the final multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 Year 2 Year 3 Year 4 b. Units-of-activity method Year Amount Year 1 Year 2 Year 3 Year 4 c. Double-declining-balance method Year Amount Year 1 $ Year 2 Year 3 Year 4
