On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,030,000 to the various types of assets along with estimated useful lives and residual values are as follows: Estimated Residual Estimated Useful Asset Cost Value Life (in years) Land 115,000 N/A N/A Building 530,000 none 20 Equipment 210,000 126 of cost Vehicles 175,000 $14,000 10 Total $1,030,000 8 On June 29, 2022, equipment included in the March 31, 2021, purchase that cost $103,000 was sold for $83,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2021. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2022, and the sale of equipment 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2022 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute depreciation expense on the building, equipment, and vehicles for 2021. (Do not round intermediate calculations.) Depreciation Expense Building Equipment Vehicles On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,030,000 to the various types of assets along with estimated useful lives and residual values are as follows: Cost Asset Land Building Equipment Vehicles Total $ 115,000 530,000 210,000 175,000 $1,030,000 Estimated Residual Value N/A none 12% of cont $14,000 Estimated Useful Life (in years) N/A 20 8 10 On June 29, 2022, equipment included in the March 31, 2021, purchase that cost $103,000 was sold for $83,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2021. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2022, and the sale of equipment 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2022 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2022, and the sale of equipment. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar.) View transaction list Journal entry worksheet Required 1 Required 2 Required 3 Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2022, and the sale of equipment. (if no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar.) View transaction list Journal entry worksheet > Record the depreciation on machinery sold. Note: Enter debits before credits Date June 29, 2022 General Journal Debit Credit On March 31, 2021, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,030,000 to the various types of assets along with estimated useful lives and residual values are as follows: Estimated Residual Estimated Useful Asset Life (in years) $ 115,000 N/A Building 530,000 Equipment 210,000 Vehicles 175,000 $14,000 Total $1,030,000 Cost Value Land none 126 of cost N/A 20 8 10 On June 29, 2022, equipment included in the March 31, 2021, purchase that cost $103,000 was sold for $83,000. Herzog uses the straight-line depreciation method for building and equipment and the double-declining balance method for vehicles. Partial-year depreciation is calculated based on the number of months an asset is in service. Required: 1. Compute depreciation expense on the building, equipment, and vehicles for 2021. 2. Prepare the journal entries to record the depreciation on the equipment sold on June 29, 2022, and the sale of equipment 3. Compute depreciation expense on the building, remaining equipment, and vehicles for 2022. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute depreciation expense on the building, remaining equipment, and vehicles for 2022. (Do not round intermediate calculations.) Depreciation Expense Building Equipment Mahirlae
