Question
The Fanzy company acquired the following assets on January 1, 2018 asset cost Useful life Residual value Amortization method Building $650 000 25 years $
The Fanzy company acquired the following assets on January 1, 2018
asset | cost | Useful life | Residual value | Amortization method |
Building | $650 000 | 25 years | $ 50 000 | Straight line |
Office equipment | 65 000 | 5 years | 5 000 | Double-declining |
Delivery equipment | 220 000 | 5 years | 20 000 | Units of production |
The delivery equipment is estimated to be used for 400 000 kmand was driven 50 000 km in 2018 and 60 000 km in 2019
REQUIRED :
1. Calculate amortization expense for 2018 and 2019 for each of the above assets using the answer schedules
2. Journalize the purchase transaction and the amortization expense entries of December 31, 2018
date | Asset cost | Residual value | Amortizable cost (1) | Amort. Rate (2) | Amortization expense (3) | Accumulated amortization(4) | Book value (5) |
Dec. 31 2018 |
|
|
|
|
|
|
|
Dec.31, 2019 |
|
|
|
|
|
|
|
(1) Calculation :
(2) Calculation :
(3) Calculation :
(4) Calculation :
(5) calculation
1. Amortization schedule of Office Equipment
date | Asset cost | Amortization.rate (1) | Amortization expense (2) | Accumulated amortization (3) | Net book value (4) |
Dec.31, 2018 |
|
|
|
|
|
Dec.31, 2019 |
|
|
|
|
|
(1) Calculation :
(2) Calculation :
(3) Calculation :
(4) Calculation :
2. Amortization schedule of the delivery equipment
date | Asset cost | Amort.per Km(1) | Number of Km | Amort. Expense (2) | Accumulated amortization (3) | Net book value (4) |
Dec.31, 2018 |
|
|
|
|
|
|
Dec.31, 2019 |
|
|
|
|
|
|
(1) Calculation :
(2) Calculation :
(3) Calculation :
(4) Calculation :
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
Return Jahrgang 2018 Magazin Fur Transformation Und Turnaround
Authors: Stefanie Burgmaier, Hans Haarmeyer, Thorsten Garber
3rd Edition
365825601X, 9783658256012
