need help finding accumulated depreciation for #5
*HOMEWORK ASSIGNMENT HW1 Bevo T-shirt Company purchased land, paying $30,000 cash plus a $300,000 note payable. In addition, Bevo paid delinquent property tax of $2,000 and paid $14,000 to remove an unwanted building on the property. Bevo then constructed an office building at a cost of $900,000. Bevo also paid $15,000 for legal work on the land. $40,000 was spent on paving for a parking lot and $10,000 was paid for lighting. High- tech sewing machines costing $80,000 were then installed and setup at a cost of $5,000. Transportation cost on the machines was $700. $400 was spent on building permits. Requirements: 1. What are the cost of the land, land improvements, building and equipment. 2. Which of these assets will Bevo depreciate? Solution 1. Cost of land $ 1. Cost of land improvements Cost of building $ 2 Cost of the machinery $ 2. Building, land improvements and ? 3 Check number information: land cost is $311,000 more than land improvements. The building cost is $814,700 more than the equipment cost. R.M. HW 2 Northwest Street Paving Company purchased paving equipment on January 2, 2015, for $380,000. The equipment was expected to have a useful life of four years, or 8,000 operating (paving) hours, and a residual value of $36,000. The equipment was used for 2,000 hours during 2015,3,500 hours in 2016, 1,400 hours in 2017, and 1.100 hours in 2018 Requirements: 1. Prepare a schedule of depreciation expense, accumulated depreciation and book value for the paving equipment under the three methods (straight lins, units of production and double MacBook Air Page 10 of 34 38UUUU 344,000 86,000 3. 208,000 17215 12/31/15 12/31/16 12/31/17 12/31/18 Total 36,000 344,000 Book Value Units-of-Production (Year End Book Value = Cost less Accumulated Depreciation) Step 1: Rate per Unit (Cost - Residual Value)/Total Estimated Life in Units of Usage hours of life Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated Date Cost Per Unit Units Expense Depreciation 1/2/15 380,000 12/31/15 86,000 12/31/16 4. 12/31/17 60,200 12/31/18 Total 36,000 R.R.M. Double-Declining Balance (Year End Book Value = Cost less Accumulated Depreciation) Depreciation for the Year Asset Beginning Double Depreciation Accumulated Book Date Cost Book Value S/L Rate Expense Depreciation Value 1/2/15 380,000 12/31/15 380,000 190,000 12/31/16 95,000 12/31/17 5. 12/31/18 11,500 36,000 Total *Final year. Beginning Book Value ) less Residual Value ) - 11,500 For the double-declining balance method for 2017, make the journal entry for depreciation: General Journal Account Name Debit Credit 12/31/17 record depreciation double declining bal
