{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T15:05:14-04:00", "answer_date": "2024-05-26 15:05:14", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1745431", "url": "\/study-help\/questions\/question-3-20-marks-f-co-purchased-equipment-on-january-1745431", "question_creation_date_js": "2024-05-26T15:05:14-04:00", "question_creation_date": "May 26, 2024 03:05 PM", "meta_title": "[Solved] Question 3 (20 Marks) F Co. purchased equ | SolutionInn", "meta_description": "Answer of - Question 3 (20 Marks) F Co. purchased equipment on January 25, 2020, for $64,000. Its financial year ends on December | SolutionInn", "meta_keywords": "question,3,20,marks,purchased,equipment,january,25,2020,$64,000,financial,year", "question_title_h1": " Question 3 (20 Marks) F Co. purchased equipment on January 25, 2020, for $64,000. Its financial year ends on December 31 each year. The", "question_title": " Question 3 (20 Marks) F Co. purchased equipment on January 25,", "question_title_for_js_snippet": "Question 3 (20 Marks) F Co purchased equipment on January 25, 2020, for $64,000 Its financial year ends on December 31 each year The expected useful life of the equipment is 10 years, and its residual value is $4,000 Required a) Compute the annual depreciation expense at the end of 2020 and 2021 using double declining balance method and the half year convention Show the calculations (6 marks) 3 b) On December 31, 2021, F Co sold the equipment for $37,500 cash Record journal entries for the sale of the equipment at year end (Transaction descriptions are not required ) (5 marks) c) In preparing this year's financial statements, management of F Co decided to revise the estimated useful life from 10 years to 15 years Briefly explain how this revision in estimated life is likely to affect this year's Profit (3 marks) d) F Co is a small company sells luxury jewelry to customers The Management believes that periodic inventory system is suitable for a small company like F Co , because the system takes less time to prepare accounting records Do you agree Explain (6 marks)", "question_description": "\"image", "transcribed_text": "Question 3 (20 Marks) F Co. purchased equipment on January 25, 2020, for $64,000. Its financial year ends on December 31 each year. The expected useful life of the equipment is 10 years, and its residual value is $4,000. Required: a) Compute the annual depreciation expense at the end of 2020 and 2021 using double declining balance method and the half-year convention. Show the calculations. (6 marks) 3 b) On December 31, 2021, F Co. sold the equipment for $37,500 cash. Record journal entries for the sale of the equipment at year end. (Transaction descriptions are not required.) (5 marks) c) In preparing this year's financial statements, management of F Co. decided to revise the estimated useful life from 10 years to 15 years. Briefly explain how this revision in estimated life is likely to affect this year's Profit. (3 marks) d) F Co. is a small company sells luxury jewelry to customers. The Management believes that periodic inventory system is suitable for a small company like F Co., because the system takes less time to prepare accounting records. Do you agree? Explain. (6 marks)", "related_book": { "title": "Fraud examination", "isbn": "538470844, 978-0538470841", "edition": "4th edition", "authors": "Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/158.jpg", "uri": "\/textbooks\/fraud-examination-4th-edition-158", "see_more_uri": "" }, "free_related_book": { "isbn": "B0CDNCGD56", "uri": "\/textbooks\/14-column-ledger-book-1st-edition-b0cdncgd56-117463", "name": "14 Column Ledger Book", "edition": "1st Edition" }, "question_posted": "2024-05-26 15:05:14", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/introduction-to-programming\/run-experiments-to-determine-the-relative-costs-of-mathexp-and-1256756", "description": "Run experiments to determine the relative costs of Math.exp() and the methods from EXERCISE 1.3.38 for computing e x : the direct method with nested for loops, the improvement with a single for loop,...", "stars": 3 }, { "url": "\/swap-contracts-are-a-type-of-derivative-that-is-often", "description": "Swap contracts are a type of derivative that is often used to manage financing costs. 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