Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lopez & Company, located in the beautiful Puget Sound, provided the following post - closing trial balance for the year ended December 3 1 ,
Lopez & Company, located in the beautiful Puget Sound, provided the following postclosing trial balance for the year ended
December
ADDITIONAL INFORMATION:
The equipment shown on the trial balance consists of:
During the fiscal year the company had the following transactions related to its equipment:
March : Paid $ to expand the production capacity of equipment This doubled the production capacity from
units per day to units per day. The useful life of the equipment remains unchanged.
March : Paid $ as regular maintenance for all three machines. The cost is divided equally among the machines
August : Due to increased demand, purchased a fourth equipment Equipment D The invoice price was $ with
terms FOB shipping point. The company paid $ for shipping and another $ to install the equipment. The
invoice was paid within the discount period. The estimated useful life is years with zero salvage value.
REQUIRED
a What is the total cost of the four equipment as at December
b What is the total depreciation expense for the four equipment for the year ended December
c What is the total accumulated depreciation for the four equipment as at December
d What is the net book value of the four equipment as at December
e Assume that equipment B was sold for $ on January Record the resulting iournal entry.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started