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Please provide information on how to process computing and revising depreciation; > Get This Solution Now

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Please provide information on how to process computing and revising depreciation; revenue and capital expenditures. A sample template or the link to a similar problem from the solution library would be helpful.

 

Fundamental Accounting Principals, 18th Edition

 

Wild, Larson, Chiappetta, McGraw-Hill Irwin

 

Problem 10-3A: Computing and revising depreciation; revenue and capital expenditures.

 

Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.

 

2007

 

Jan. 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB

 

shipping point) for a new loader. The loader is estimated to have a four-year life

 

and a $20,600 salvage value. Loader cost are recorded in the Equipment account.

 

Jan. 3 Paid $4,800 to enclose the cab and install air conditioning in the loader to enable

 

operations under harsher conditions. This increased the estimated salvage value

 

of the loader by another $1,400.

 

Dec. 31 Recorded annual straight-line depreciation on the loader.

 

2008

 

Jan. 1 Paid $5,400 to overhaul the loader\'s engine, which increased the loader\'s

 

estimated useful life by two years.

 

Feb. 17 Paid $820 to repair the loader after the operator backs it into a tree.

 

Dec. 31 Recorded annual straight-line depreciation on the loader.

 

Required: Prepare journal entries to record these transactions and events.

 

 

Fundamental Accounting Principals, 18th Edition

 

Wild, Larson, Chiappetta, McGraw-Hill Irwin

 

Problem 10-3A: Computing and revising depreciation; revenue and capital

 

expenditures.

 

Champion Contractors completed the following transactions and events

 

involving the purchase and operation of equipment in its business.

 

2007

 

Jan. 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in

 

transportation (FOB

 

shipping point) for a new loader. The loader is estimated

 

to have a four-year life

 

and a $20,600 salvage value. Loader cost are recorded in

 

the Equipment account.

 

Jan. 3 Paid $4,800 to enclose the cab and install air conditioning in

 

the loader to enable

 

operations under harsher conditions. This increased the

 

estimated salvage value

 

of the loader by another $1,400.

 

Dec. 31 Recorded annual straight-line depreciation on the loader.

 

2008

 

Jan. 1 Paid $5,400 to overhaul the loaderâ??s engine, which increased

 

the loaderâ??s

 

estimated useful life by two years.

 

Feb. 17 Paid $820 to repair the loader after the operator backs it into

 

a tree.

 

Dec. 31 Recorded annual straight-line depreciation on the loader.

 

Required: Prepare journal entries to record these transactions and

 

events.

 

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