E9.7

Section 06 Determine straight line depreciation for proper Instructions Compute the depreciation expense under the straight-line method for 2012 and 2003). Meninga December 31 year end. E9.6 ( L 2), AP Linton Company purchased a delivery truck for $34.000 on July 1, 2012. The truck has an expected salapevale of $2.000, and is expected to be 15.000 in 2002 and 12.000 in 2003. Linto the straight-line method of depreciation 100.000 d al y an Adual miles de Corpul dep o sing the strate-line method. Instructions a. Compute depreciation expense for 2022 and 2023 b. Prepare the rural entry to record a depreciation e. Prepare the journal entry to record 2033 depreciation d. Show how the track beported in the December 31, 2021. balance sheet 10.7(10 ), AN Victor Minell the new controller of Santorini Company, has reviewed the speed lives and salvage values of lected depreciablets at the beginning of ou r in finding Computer and annual decision. e stallid, Accumulated Useful Life Type of Depreciation, (in years) Salvage Value Asset Acquired Coat Jun 1, Old Proposed Old Proposed $35.000 Warehouse J. . 2017 120,000 23.000 25 0 5.000 3.600 Alles are depreciated by the straight-line method. Santorial Company was a calendar year is preparing anal financial statements. Aber d ie man met has greed to wept Vider's proposed change the prepad not remaining life.) Instructions a. Compute the revised annual depreciation on each asset in Show computations.) b. Prepare the entry for entries to record depreciation on the building in 2022 E9.(LOR), AP on July 2010 April Company purchased new equipment for 10,000. Its estimated wall life was 7 years with a vervals. Os December 31, 2002, the company estimated that the g years, with a revised calage value of $5.000 i ng es 10 Computerised deration and record entries. Instructions b. Prepare the journal entry to record depreciation on December 31, 2030. c. Compute the revised annual depreciation on December 31, 2022 d. Prepare the journal entry to record depreciation on December 31, 2022 e. Compute the balance in Accumulated Depreciation-Iquipment for this equipment after depreciation expense has been recorded on December 31, 2002 E99 (L03), AP The Co has delivery equipment that could and has been deprecated 594,000 Journaline transactions related to digale plantas 20 7. Recognizing depreciation on an asset results in an accumulation of cash for replacement of the asset 8. The balance in accumulated depreciation represents the total cost that has been charged to expense since placing the set in wervice 9. Depreciation expense and accumulated depreciation are reported on the income statement 10. Three factors affect the computation of depreciation cost, seal life, and salvage value structions entify each statement as true or false. If false, indicate how to correct the statement -5 (102), AP Gotham Company purchased a new machine on October 1, 2022, a cost of $90,000. The company estimated that the machine has a salvage value of 0.100. The machine is expected to be wed for 70,000 working hours during ar life Determine straight-line depreciation for partial period. astructions ompute the depreciation expense under the straight line method for 2022 and 2023, smaga December 1 year-end. 9.6 (102), AP Linton Company purchased a delivery truck for $34.000 on July 1, 2012. The truck has an expected salge value of $2,000, and is expected to be driven 100,000 miles over is estimated 5.000 in 2022 and 12.000 in 2003. Unton uses the straight line method of depreciation file of years. Actualmiles driven were Compule depreciation using the straight-line method. instructions a. Compute depreciation expense for 2022 and 2023 b. Prepare the journal entry to record 209a depreciation. c. Prepare the journal entry to record 2033 depreciation. d. Show how the truck would be reported in the December 31, 2023, balance sheet. E9.7 (102), AN Victor Minell, the new controller of Santorini Company, has reviewed the expected of lives and salme values of selected depreciable assets at the beginning of oua. Here are his findings: Compule ruled annual depreciation Useful Life Type of Date Depreciation, in years) Asset Aquired Cost Jan 1, 2022 Om Proposed Old Proposed Building Jan 1, 2014 $700,000 $139,000 40 55 $35.000 Warehouse Jan 1, 2017 120,000 2,000 25 30 5000 3.600 All assets are depreciated by the straight-line method. Santorini Company uses a calendar year in preparing annual financial statements. After discussion management has agreed to copt Victor's proposed changes. (The "Proposed selle is totallite, not remaining life.) Instructions a. Comprate the revised annual depreciation on each set in 2022. (Show computation) b. Prepare the entry for entries) torced depreciation on the building in 2022. E9.8 (LO ), AP On July 1, 2019. April Company purchased new equipment for 10,000. Its estimated seal life was 7 years with a $10,000 salvage value. On December 31, 2002, the company estimated that the equipment's remaining w ife was years, with a revised salvare value of OOD. Compute revised depreciation and record entries