Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I only need question #2 please. 2. In recent years, Gadget Company purchased three machines. Amortization methods were chosen based on the estimated life and

I only need question #2 please.

image text in transcribed
2. In recent years, Gadget Company purchased three machines. Amortization methods were chosen based on the estimated life and use of each machine: Machine Date Purchased Cost Residual Value Useful Life Amortization Method A Jan. 1, 2013 $85,000 $5,000 10 Straight-Line B Jan. 1, 2013 $100,000 $10,000 5 Declining Balance C Feb. 1, 2013 $90,000 $5,000 6 Units of Activity For the declining balance method, the company uses double the straight-line rate. Machine C is expected to produce 50 000 units over its useful life. The actual usage was 8 000 units for 2013, 10 000 units for 2014, and 9 000 units for 2015. a) Calculate the amortization expense for each machine in 2013, 2014, and 2015. b) Calculate the accumulated amortization for each machine at December 31, 2015. c) Record the journal entry to record the amortization for machines A, B and C on December 31, 2015. 3. Presented below are selected transactions from Siambanopolis Company for 2015. Amortization is calculated on a straight-line basis. You will have to calculate accumulated amortization. Journalize each transaction

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: James D. Stice, Earl K. Stice, Fred Skousen

17th Edition

032459237X, 978-0324592375

More Books

Students also viewed these Accounting questions