Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P 11-9 Straight-line depreciation; disposal; partial period; change in estimate LO11-2, LO11-5 The property, plant, and equipment section of the Jasper Company's December 31,

image text in transcribedimage text in transcribed

P 11-9 Straight-line depreciation; disposal; partial period; change in estimate LO11-2, LO11-5 The property, plant, and equipment section of the Jasper Company's December 31, 2023, balance sheet contained the following: Property, plant, and equipment: Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total property, plant, and equipment $120,000 $840,000 (200,000) 640,000 180,000 ? ? The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $40,000 for the building is anticipated. Page 631 The equipment is comprised of the following three machines Machine 101 102 Cost $70,000 80,000 Date Acquired 1/1/2021 Residual Value $7,000 Life (in years) 10 103 30,000 6/30/2022 9/1/2023 8,000 8 3,000 The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $52,500. Early in 2024, the useful life of machine 101 was revised to seven years in total, and the residual value was revised to zero. Required: 1. Calculate the accumulated depreciation on the equipment at December 31, 2023. 2. Prepare the journal entry to record 2024 depreciation on machine 102 up to the date of sale. 3. Prepare a schedule to calculate the gain or loss on the sale of machine 102. Bunaing Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total property, plant, and equipment 3840,000 (200,000) 640,000 180,000 ? ? ? The land and building were purchased at the beginning of 2019. Straight-line depreciation is used and a residual value of $40,000 for the building is anticipated. Page 631 The equipment is comprised of the following three machines: Machine Cost 101 $70,000 Date Acquired 1/1/2021 Residual Value Life (in years) $7,000 10 102 80,000 6/30/2022 8,000 8 103 30,000 9/1/2023 3,000 9 The straight-line method is used to determine depreciation on the equipment. On March 31, 2024, Machine 102 was sold for $52,500. Early in 2024, the useful life of machine 101 was revised to seven years in total, and the residual value was revised to zero. Required: 1. Calculate the accumulated depreciation on the equipment at December 31, 2023. 2. Prepare the journal entry to record 2024 depreciation on machine 102 up to the date of sale. 3. Prepare a schedule to calculate the gain or loss on the sale of machine 102. 4. Prepare the journal entry for the sale of machine 102. 5. Prepare the 2024 year-end journal entries to record depreciation on the building and remaining equipment.

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

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

More Books

Students also viewed these Accounting questions