Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculator Print Item Some account servic available until you sig structions ew lithographic equipment, acquired at a cost of $843,200 on March 1 at the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Calculator Print Item Some account servic available until you sig structions ew lithographic equipment, acquired at a cost of $843,200 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and estimated residual value of $94,860. The manager requested Information regarding the effect of alternative methods on the amount of depreciation pense each year. On the basis of the data presented to the manager, the double declining balance method was selected. the first week of the fifth year, on March 4, the equipment was sold for $140,199. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. Round your answers to the nearest whole dollar 2. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method. Refer to the Chart of Accounts for exact wording of account titles. 3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $93 349 instead of $140, 199. Referito the Chart of Accounts for exact wording of account titles. ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 114 Interest Receivable 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment 115 Notes Receivable 116 Merchandise Inventory EXPENSES 117 Supplies 510 Cost of Merchandise Sold 520 Salaries Expense 119 Prepaid Insurance 120 Land 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 524 Repairs and Maintenance Expense 529 Selling Expenses 125 Equipment 126 Accumulated Depreciation-Equipment Calculator Print Item Chart of Accounts 130 Mineral Rights 531 Rent Expense 131 Accumulated Depletion 132 Goodwill 532 Depreciation Expense-Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 133 Patents LIABILITIES 210 Accounts Payable 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 211 Salaries Payable 720 Loss on Sale of Delivery Truck 213 Sales Tax Payable 214 Interest Payable 721 Loss on Sale of Equipment 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Depreciation by two met ads; sale of fixed asset Accounts Starting Questions Journal Chart of Accounts Starting Questions Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and t book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining balance method. Round your answ to the nearest whole dollar. Enter all amounts as a positive numbers. a. Simight-line method Accumulated Depreciation, End of Year Book Value, End of Year Year Depreciation Expense 1 2 310 Common Stock 311 Retained Earnings 312 Dividende Check My Work 2 more Check My Work uses remaining Depreciation by two met ads; sale of fixed asset Instructions Starting Questions Journal Chart of Accounts Starting Questions Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and t book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining balance method. Round your answ to the nearest whole dollar. Enter all amounts as a positive numbers. a. Straight-line method Accumulated Depreciation, End of Year Book Value, End of Year Year Depreciation Expense 1 2 3 310 Common Stock 311 Retained Earnings 312 Dividende Check My Work 2 more Check My Work uses remaining Depletion Entries Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 to were mined and sold a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimal places. b. Journalize the adjusting entry on December 31 to recognize the depletion expense. If an amount box does not require an entry, leave it blank. Dec. 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Microeconomics

Authors: Hal R. Varian

9th edition

978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968

Students also viewed these Accounting questions

Question

Write short notes on Interviews.

Answered: 1 week ago

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago