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AutoSave Of H B File Home Power View Insert Dra M . Calibri - 14 - A 5 BI U - - - A - Paste Clipboard Font Q41 A B C D E F G H J K L M A depreciation schedule for heavy equipment of Beniluz Road Construction Company was requested by your auditor soon after December 31, 2021, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2018 to 2021, inclusive. The following data were ascertained: Balance of Equipment account, Jan. 1, 2018 Equipment No. 1 purchased Jan. 1, 2015, cost $ 50,000 Equipment No. 2 purchased July 1, 2015, cost 60,000 Equipment No. 3 purchased Jan. 1, 2016, cost 55,000 Equipment No. 4 purchased July 1, 2017, cost 70,000 Balance, Jan. 1, 2018 $235,000 The Accumulated Depreciation Equipment account previously adjusted to January 1, 2018, and entered in the ledger, had a balance on that date of $89,000 (depreciation on the four pieces of equipment from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2018. Transactions between January 1, 2018, and December 31, 2021, which were recorded in the ledger, are as follows: Jan. 1, 2019 Equipment No. 1 was sold for $6,000 cash; entry debited Cash and credited Equipments, $6,000. July 1, 2019 Equipment No. 2 was traded for a larger one (No. 5), the agreed purchase price of which was $80,000. Beniluz Road Construction Co. paid the dealer $66,000 cash on the transaction. The entry was a debit to Equipment and a credit to Cash, $66,000. The transaction has commercial substance. July 1, 2020 Equipment No. 3 was damaged in a wreck to such an extent that it was sold as junk for $500 cash. Beniluz Road Construction Co. received $12,000 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $12,500, and credits to Miscellaneous Income, $500, and Equipment, $12,000. July 1, 2021 A new Equipment (No. 6) was acquired for $92,000 cash and was charged at that amount to the Equipment account. Entries for depreciation had been made by the bookkeeper at the close of each year as follows: 2018, $47,000; 2019, $42,600; 2020, $32,700; 2021, $35,400. Question Part 1 Answer Sheet Par O Type here to search Font Alignment Number Clipboard B15 : x fx accumulated depreciation E F G H A B C D J K L M N WORTH 10 POINTS 2 Based on your responses to #9 on the Question Part 1 tab, 3 prepare the adjusting entry to adjust the balances for: 4 Depreciation expense 5 Accumulated Depreciation-equipment 6 Equipment 7 Retained Earnings 9 Show your entry below. Be sure to use cell references from the Question tab for the amounts 10 used in your entry. N P Q R S T START HERE U V W 9200 depreciation expense accumulated depre 9200 COMPLETE "?" 9 Complete the following tables as of December 31, 2021 On Books Corrected Amount Adjustment Equipment @ Cost 375000 242000 13300 Dr AMOUNTS ARE AS OF 12/31/21 ENTER AMOUNTS HERE FIRST Supporting Schedules Accum Depreciation Cost for: cost Depr Expense-2021 Equipment #1 Equipment#2 Equipment #3 Equipment #4 70000 63000 14000 Equipment #5 80000 40000 16000 Equipment #6 92000 9200 9200 Total 242000 112200 39200 C On Books Corrected Amount Adjustment Accumulated Depreciation 246700 C 112200 Cr 134500 Dr equipment 5 2019 2020 2021 accum depr Equipment 4 depre 2017 7000 2018 14000 2019 14000 2020 14000 2021 14000 accum der 63000 8000 16000 16000 40000 Depreciation Expense On Books Corrected Amount Adjustment 35400 Dr 39200 Dr -3800 Dr COMPLETE"?" Adjusted amounts (3,600) 6,000 Retained Earnings dr (cr) AS Recorded For 2019 Depreciation expens 42,600 Sale of Equip #1 Trade of Equip#2 and purchase of Equip #5 For 2020 Depreciation expens: 32,700 Sale of Equip #3 (500) Totals 74,800 depreciation expe 2019 equipment 2 equipment 3 equipment 4 equipment 5 Total recorded adjusted 6000 11000 14000 8000 39000 42600 -3600 2,000 2,800 13,000 20200 depreciation expense 2020 equipment 3 5500
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