Question
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
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:
- Equipment was sold for cash of $17,000.
- Machinery was sold for cash of $27,000.
- Delivery truck was sold for cash of $11,000
- Furniture was given to a charity.
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:
- Equipment was sold for cash of $17,000.
- Machinery was sold for cash of $27,000.
- Delivery truck was sold for cash of $11,000
- Furniture was given to a charity.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: John Wild, Ken Shaw
5th edition
978-1259176494, 1259176495, 978-1259347641, 1259347648, 978-0078025600
