QS 9-1 Cost of PPE LO1

Sydney Lanes, a local bowling alley, installed automatic scorekeeping equipment. The electrical work required to prepare for the installation was $18,000. The invoice price of the equipment was $180,000.Additional costs were $3,000 for delivery and $600 for insurance during transportation. During the installation, a component of the equipment was damaged because it was carelessly left on a lane and hit by the automatic lane cleaning machine. The cost of repairing the component was $2,250. What is the cost that should be capitalized of the automatic scorekeeping equipment?

QS 9-5 Calculating depreciation-straight-line LO2

On January 2, 2017, Crossfire acquired sound equipment for concert performances at a cost of $55,900.

The rock band estimated that it would use this equipment for four years, and then sell the equipment for $1,900. Calculate depreciation for each year of the sound equipment's estimated life using the straight-line method. Crossfire's year-end is December 31.

QS 9-6 Calculating depreciation--units-of-production LO2 eXcel

Papaya, a specialty greeting card company, purchased a photocopier costing $45,000 on January 1,2017. The equipment is expected to produce a total of 4,000,000 copies over its productive life. Its residual value at the end of its useful life is estimated to be $5,000. The equipment actually produced:

Fiscal Year Coples Produced

2017. 650,000

2018. 798,000

2019 424,000

2020 935,000

2021 193,000

Click here for a description of Table: QS 9-6.

Calculate depreciation for 2017 through to 2021 using the units-of-production method. Papaya's year-end is December 31.

QS 9-7 Calculating depreciation-double-declining-balance LO2 eXcel

Patty's Pies acquired a delivery truck on January 1, 2017, for $86,000. It is expected to last five years and then sell for about $16,000. Calculate depreciation for each year of the truck's life using the double-declining-balance method. Patty's Pies year-end is December 31.

QS 9-15 Disposal of PPE LO6

Huang Furniture Company showed the following adjusted account balances on September 30, 2017:

Equipment. 56,000

Accumulated depreciation, equipment. 39,000

Machinery 109,000

Accumulated depreciation, machinery. 96,000

Delivery truck 48,000

Accumulated depreciation, delivery truck 33,000

Furniture 26,000

Accumulated depreciation, furniture 21,000

Click here for a description of List: QS 9-15.

Prepare the entries to record the following on October 1, 2017:

1. Equipment was sold for cash of $17,000.
2. Machinery was sold for cash of $27,000.
3. Delivery truck was sold for cash of $11,000
4. Furniture was given to a charity.