Question
Capital and Revenue Expenditures On February 13, Welllington Co. paid $2,670 to install a hydraulic lift and $23 for an air filter for one of
Capital and Revenue Expenditures
On February 13, Welllington Co. paid $2,670 to install a hydraulic lift and $23 for an air filter for one of its delivery trucks.
Journalize the entries for the new lift.
February 13 | |||
Journalize the entry for air filter expenditures.
February 13 | |||
Sale of Equipment
Equipment was acquired at the beginning of the year at a cost of $587,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $49,740.
a. What was the depreciation for the first year? Round your answer to the nearest cent. $
b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $104,786.
Round your answer to the nearest cent and enter as a positive amount. $
c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Depletion
Caldwell Mining Co. acquired mineral rights for $77,000,000. The mineral deposit is estimated at 55,000,000 tons. During the current year, 13,750,000 tons were mined and sold.
a. Determine the depletion rate. If required, round your answer to two decimal places. $ per ton
b. Determine the amount of depletion expense for the current year. $
c. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Dec. 31 | |||
Double-Declining-Balance Depreciation
A building acquired at the beginning of the year at a cost of $106,000 has an estimatedresidual value of $6,400 and an estimated useful life of four years. Determine the following.
(a) | The double-declining-balance rate | % | |
(b) | The double-declining-balance depreciation for the first year | $ |
Depletion
Caldwell Mining Co. acquired mineral rights for $77,000,000. The mineral deposit is estimated at 55,000,000 tons. During the current year, 13,750,000 tons were mined and sold.
a. Determine the depletion rate. If required, round your answer to two decimal places. $ per ton
b. Determine the amount of depletion expense for the current year. $
c. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Dec. 31 | |||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started