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Cost and Deprecation On January 1, 2022. Quick Stop, a convenience store purchased a new soft drink cooler Quick Stop paid $23,000 cash for the

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Cost and Deprecation On January 1, 2022. Quick Stop, a convenience store purchased a new soft drink cooler Quick Stop paid $23,000 cash for the cooler Quick Stop also paid $730 to have the coolershipped to its location After the new cooler arrived, Quick Stop paid $2,410 to have the old cooler dismantled and removed. Quick Stop to paid $820 to a contractor to have now wiring and drains installed for the new cooler Quick Stop estimated that the cooler would have a useful life of 6 years and a residual value of $200 Quick Stop uses the straight-line method of depreciation Required: 1. Prepare any necessary journal entries to record the cost of the cooler Jan. 1 Guipment Cash (Record purchase of equipment) 2. Prepare the adjusting entry to record 2022 depreciation expense on the new cooler Dec. 31 Depreciation Expense Accumulated Depreciation (Record straight-line depreciation) 3. What is the book value of the cooler at the end of 2022 4. Conceptul Connection ti Quick Stop had used a useful life of 10 years and a residual value of $1.500, how would this affect depreciation expense for 2022 and the book value of the cooler at the end of 20222 Depreciation expense for 2022 Book value of the cooler at the end of 2022 Disposal of a Capital Asset Jolie Company owns equipment with a cost of $437,500 and accumulated depreciation of $280,000. Required: Prepare the journal entry to record the disposal of the equipment on April 9, assuming: 1. Jolie sold the equipment for $173,300 cash. For those boxes in which no entry is required, leave the box blank. Apr. 9 -2. Jolle sold the equipment for $146,500 cash. For those boxes in which no entry is required, leave the box blank. Apr. 9 Depreciation Methods On January 1, 2021, Loeffier Company acquired a machine at a cost of 3151,000. Loeffler estimates that it will use the machine for four years or 9.000 machine-hours. It estimates that after four years the machine can be sold for 57,000. Loeffler uses the machine for 1,900 and 2.300 machine-hours in 2021 and 2022, respectively Requiredi Compute depreciation expense for 2021 and 2022 using the 1. Straight line method of depreciation Depreciation Expense 2021 2022 2. Double declining balance method of depreciation Depreciation Expense 2021 2022 3. units of production method of depreciation Depreciation Expense 2021 2022 100

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