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Assets_Depreciation_Six Questions




Question;1.;Chen Company completed the following transactions and events;involving its delivery trucks.;2010;Jan.;1;Paid $25,015 cash plus $1,785 in sales tax for a new delivery;truck estimated to have a five-year life and a $2,300 salvage value. Delivery;truck costs are recorded in the Trucks account.;Dec.;31;Recorded annual straight-line depreciation on the truck.;2011;Dec.;31;Due to new information obtained earlier in the year, the truck?s;estimated useful life was changed from five to four years, and the estimated;salvage value was increased to $2,850. Recorded annual straight-line;depreciation on the truck.;2012;Dec.;31;Recorded annual straight-line depreciation on the truck.;Dec.;31;Sold the truck for $5,500 cash.;Required;1.;Prepare journal entries to record these transactions and events;in the given order.;2.);Saturn;Co. purchases a used machine for $288,000 cash on January 2 and readies it;for use the next day at an $8,000 cost. On January 3, it is installed on a;required operating platform costing $1,600, and it is further readied for;operations. The company predicts the machine will be used for six years and;have a $34,560 salvage value. Depreciation is to be charged on a;straight-line basis. On December 31, at the end of its fifth year in;operations, it is disposed of.;Required;1.;Prepare;journal entries to record the machine's purchase and the costs to ready and;install it. Cash is paid for all costs incurred.;2.;Prepare;journal entries to record depreciation of the machine at December 31.;(a);Its first year in operations.;(b);The year of its disposal.;3.;Prepare;journal entries to record the machine?s disposal under each of the following;separate assumptions;(a);It is sold for $23,500 cash.;(b);It is sold for $94,000 cash.;(c);It is destroyed in a fire and the;insurance company pays $34,000 cash to settle the loss claim.;3.);Ming Yue Company pays $350,000 for real estate plus $18,550 in;closing costs. The real estate consists of land appraised at $218,400, land;improvements appraised at $62,400, and a building appraised at $239,200.;Allocate the total cost among the three purchased assets.(Round your percentage;answers to a whole number and other answers to the nearest dollar amount.;Omit the "$" and "%" signs in your response.);Prepare the journal entry to record the purchase.;4.);In early January 2011, LabTech purchases computer equipment for;$174,000 to use in operating activities for the next four years. It estimates;the equipment?s salvage value at $36,000.;Prepare a table showing depreciation and book value for each of;the four years assuming straight-line depreciation.(Omit the "$;sign in your response.);5.);Millworks Company owns a milling machine that cost $126,700 and;has accumulated depreciation of $90,800. Prepare the entry to record the;disposal of the milling machine on January 5 under each of the following;independent situations.;1.;The machine needed extensive repairs, and it was not worth;repairing. Millworks disposed of the machine, receiving nothing in;return.(Omit;the "$" sign in your response.);2.;Millworks sold the;machine for $15,600 cash.(Omit the "$" sign in your response.);3.;Millworks sold the;machine for $35,900 cash.(Omit the "$" sign in your response.);4.;Millworks sold the;machine for $41,900 cash.(Omit the "$" sign in your response.);6.);In;early January 2011, LabTech purchases computer equipment for $147,000 to use;in operating activities for the next four years. It estimates the equipment?s;salvage value at $30,000.;Prepare;a table showing depreciation and book value for each of the four years;assuming double-declining-balance depreciation. (Leave no cells blank - be certain to enter "0";wherever required. Omit the "$" and "%" signs in your;respons


Paper#37364 | Written in 18-Jul-2015

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