Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2009, for $86,500. The PPE Sub ledger

image text in transcribed

image text in transcribed

image text in transcribed

Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2009, for $86,500. The PPE Sub ledger shows the following information regarding the boat: Fishing Boat-22 Foot With Inboard Motor Component Fibreglass body Date of Purchase Apr. 9/09 Apr. 9/09 Deprec. Method SL SL Cost s 25.500 S 6,000 Est. Residual Est. Life 15 yr Motor 61,000 10 yr S 86,500 On June 27, 2017, $67,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $4,000. Early in 2017, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value Required 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2017. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) b. Depreciation taken on the fishing boat (body plus motor) on December 31, 2017, the company's year-end. (If no entry is required for a transaction, select "No journal entry required" in the first account field. Round the final answers to the nearest whole dollar.) 2. Calculate total depreciation taken on the fishing boat (body plus motor) for the company's year ended December 31, 2017. (Round the final answers to the nearest whole dollar.) Total 2017 depreciation

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

Audit Workbook

Authors: Azhar Ul Haque Sario

1st Edition

B0C9SG1YC6, 979-8851207891

More Books

Students also viewed these Accounting questions

Question

Whats My Comfort with Change?

Answered: 1 week ago