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E 7 - 4 ( Algo ) Computing and Recording Cost and Depreciation of Assets in a Basket Purchase ( Straight - E 7 -
EAlgo Computing and Recording Cost and Depreciation of Assets in a Basket Purchase StraightEAlgo Computing Depreciation under Alternative Methods LO Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $ The estimated useful life was four years, and the residual value was $ Assume that the estimated productive life of the machine was hours. Actual annual usage was hours in year ; hours in year ; hours in year ; and hours in year Required: a Complete a separate depreciation schedule by using Straightline method. Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of rd year minus residual value. b Complete a separate depreciation schedule by using Unitsofproduction method. Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of rd year minus residual value. c Complete a separate depreciation schedule by using Doubledecliningbalance method. Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of rd year minus residual value. Line Depreciation L Zeidler Company bought a building and the land on which the building is located for a total cash price of $ The company paid transfer costs of $ Renovation costs on the building were $ An independent appraiser provided market values for the land, $ and building, $ before renovation. Required: Apportion the cost of the property on the basis of the appraised values. Input all amounts as positive values. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. If no entry is required for a transactionevent select No journal entry required" in the first account field. Journal entry worksheet Record purchase of building and land. Note: Enter debits before credits. Compute depreciation of the building at the end of one year, using the straightline method. Assume an estimated useful life of years and an estimated residual value of $EAlgo Computing and Recording Cost and Depreciation of Assets in a Basket Purchase Straight Line Depreciation L Zeidler Company bought a building and the land on which the building is located for a total cash price of $ The company paid transfer costs of $ Renovation costs on the building were $ An independent appraiser provided market values for the land, $ and building, $ before renovation. Required: Apportion the cost of the property on the basis of the appraised values. Input all amounts as positive values. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. If no entry is required for a transactionevent select No journal entry required" in the first account field. Journal entry worksheet Record purchase of building and land.
EAlgo Computing and Recording Cost and Depreciation of Assets in a Basket Purchase StraightEAlgo Computing Depreciation under Alternative Methods LO
Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $ The estimated useful life
was four years, and the residual value was $ Assume that the estimated productive life of the machine was hours. Actual
annual usage was hours in year ; hours in year ; hours in year ; and hours in year
Required:
a Complete a separate depreciation schedule by using Straightline method. Round your answers to the nearest dollar amount.
Make sure that the carrying amount at the end of year is equal to the residual value. Depreciation expense for the last period
should be calculated as Carrying value of rd year minus residual value.
b Complete a separate depreciation schedule by using Unitsofproduction method. Round your answers to the nearest dollar
amount. Make sure that the carrying amount at the end of year is equal to the residual value. Depreciation expense for the last
period should be calculated as Carrying value of rd year minus residual value.
c Complete a separate depreciation schedule by using Doubledecliningbalance method. Round your answers to the nearest
dollar amount. Make sure that the carrying amount at the end of year is equal to the residual value. Depreciation expense for
the last period should be calculated as Carrying value of rd year minus residual value.
Line Depreciation L
Zeidler Company bought a building and the land on which the building is located for a total cash price of $ The company paid
transfer costs of $ Renovation costs on the building were $ An independent appraiser provided market values for the
land, $ and building, $ before renovation.
Required:
Apportion the cost of the property on the basis of the appraised values. Input all amounts as positive values.
Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions
were for cash and that all purchases occurred at the start of the year. If no entry is required for a transactionevent select No
journal entry required" in the first account field.
Journal entry worksheet
Record purchase of building and land.
Note: Enter debits before credits.
Compute depreciation of the building at the end of one year, using the straightline method. Assume an estimated useful life of
years and an estimated residual value of $EAlgo Computing and Recording Cost and Depreciation of Assets in a Basket Purchase Straight
Line Depreciation L
Zeidler Company bought a building and the land on which the building is located for a total cash price of $ The company paid
transfer costs of $ Renovation costs on the building were $ An independent appraiser provided market values for the
land, $ and building, $ before renovation.
Required:
Apportion the cost of the property on the basis of the appraised values. Input all amounts as positive values.
Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions
were for cash and that all purchases occurred at the start of the year. If no entry is required for a transactionevent select No
journal entry required" in the first account field.
Journal entry worksheet
Record purchase of building and land.
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