Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Morris Incorporated recorded the following transactions over the life of a piece of equipment purchased in Year 1 : January 1, Year 1 . Purchased

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Morris Incorporated recorded the following transactions over the life of a piece of equipment purchased in Year 1 : January 1, Year 1 . Purchased equipment for $14,090 cash. The equipment was estimated to have a five-year 1 ife and $6,290 December 31, Year 1 Recorded depreciation expense for Year 1. Septenber 30, Year 2. Undertook routine repairs costing $777. December 31, Yesr 2 Recorded deprecfation expense for Year 2. lanuary 1, Year 3 . Hade an adjustment costing 33,130 to the equipment. It inproved the quality of the output but did not affect the 11 fe and salvage value estimstes. December 31, Year 3. Recorded depreciation expense for Year 3. June 1 , Year 4 Incurred $361 cost to ofl and clean the equipment. December 31, Year Recorded depreciation expense for Year 4. January 1, Year 5 Had the equipment conpletely overhauled at a cost of 57 , 5se. The overhaul was estimated to extend the total December 31, Year 5 . Recorded depreciation expense for vear 5 . October 1, Year 6 Recelved and accepted an offer of $15,900 for the equlpment. Required a. Use a horizontal statements model to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example b. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6 . c. Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of Year 1 through Year 5. d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1 , Year 6 . Complete this question by entering your answers in the tabs below. Use a horizontal statements model to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example. Note: Use + for increase, - for decrease, and leave blank for no effect. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity and FA for financing activity. Not all cells require input. Complete this question by entering your answers in the tabs below. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6. Note: Round your answers to nearest dollar amount. Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of Year 1 through Year 5 . Note: Round intermediate calculations and finat answers to nearest doltar amount. Complete this question by entering your answers in the tabs below. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1 , Year 6 . Note: Round intermedlate calculations and final answer to nearest dollar amount Loss amount should be indicated with a minas sign. Morris Incorporated recorded the following transactions over the life of a piece of equipment purchased in Year 1 : January 1, Year 1 . Purchased equipment for $14,090 cash. The equipment was estimated to have a five-year 1 ife and $6,290 December 31, Year 1 Recorded depreciation expense for Year 1. Septenber 30, Year 2. Undertook routine repairs costing $777. December 31, Yesr 2 Recorded deprecfation expense for Year 2. lanuary 1, Year 3 . Hade an adjustment costing 33,130 to the equipment. It inproved the quality of the output but did not affect the 11 fe and salvage value estimstes. December 31, Year 3. Recorded depreciation expense for Year 3. June 1 , Year 4 Incurred $361 cost to ofl and clean the equipment. December 31, Year Recorded depreciation expense for Year 4. January 1, Year 5 Had the equipment conpletely overhauled at a cost of 57 , 5se. The overhaul was estimated to extend the total December 31, Year 5 . Recorded depreciation expense for vear 5 . October 1, Year 6 Recelved and accepted an offer of $15,900 for the equlpment. Required a. Use a horizontal statements model to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example b. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6 . c. Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of Year 1 through Year 5. d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1 , Year 6 . Complete this question by entering your answers in the tabs below. Use a horizontal statements model to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example. Note: Use + for increase, - for decrease, and leave blank for no effect. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity and FA for financing activity. Not all cells require input. Complete this question by entering your answers in the tabs below. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6. Note: Round your answers to nearest dollar amount. Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of Year 1 through Year 5 . Note: Round intermediate calculations and finat answers to nearest doltar amount. Complete this question by entering your answers in the tabs below. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1 , Year 6 . Note: Round intermedlate calculations and final answer to nearest dollar amount Loss amount should be indicated with a minas sign

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions