Question
Dans Desserts acquired six new ice cream freezers for their warehouse on April 1, 2019. The freezers cost a total of $60,750 plus $2,500 in
Dans Desserts acquired six new ice cream freezers for their warehouse on April 1, 2019. The freezers cost a total of $60,750 plus $2,500 in sales taxes, for which Dans Desserts issued a check. The company estimates the freezers will have a value of $11,000 when the company finishes using them in 5 years. Round to the nearest dollar.
- Which accounts will be affected by the accounting entry for the acquisition of the freezers on April 1, 2019?
- Calculate the amount of straight-line depreciation Dans Desserts will record each year (rounded to the nearest dollar).
- How much depreciation will be recorded for the year ended December 31, 2019? Which accounts will be affected?
- Complete the following table:
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| Depreciation Expense on Income Statement | Asset Cost | Accumulated Depreciation | Net Book Value on Balance Sheet |
| 2019 |
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| 2020 |
|
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| 2021 |
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| 2022 |
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- What will be the net book value of the freezers on March 31, 2024 (the end of the useful life)?
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Physics
Authors: James S. Walker
5th edition
978-0133498493, 9780321909107, 133498492, 0321909100, 978-0321976444
