Eckan Word Processing Service uses the straight-line method of depreciation. The company's fiscalyear end is December 31. The following transactions and events occurred during the first year.2022 Jan 1 Purchased a computer from the Computer Center for $2,500 cashDec. 31 Recorded 2022 depreciation on the basis of a four year life and estimated salvagevalue of $500.InstructionsTPrepare the necessary entries for Jan 1 and Dec 31. (Show calculations.)

Name: Eckan Word Processing Service uses the straight-line method of deprec
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Eckan Word Processing Service uses the straight-line method of depreciation. The company's fiscalyear end is December 31. The following transactions and events occurred during the first year.2022 Jan 1 Purchased a computer from the Computer Center f

Journal Entry :— It is an act of recording transaction in books of account when transaction…

Business

Accounting

Eckan Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first year. 2022 Jan 1 Dec. 31 value of $500. Instructions Purchased a computer from the Computer Center for $2,500 cash Recorded 2022 depreciation on the basis of a four year life and estimated salvage Prepare the necessary entries for Jan 1 and Dec 31. (Show calculations.)

Eckan Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first year. 2022 Jan 1 Dec. 31 value of $500. Instructions Purchased a computer from the Computer Center for $2,500 cash Recorded 2022 depreciation on the basis of a four year life and estimated salvage Prepare the necessary entries for Jan 1 and Dec 31. (Show calculations.)

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 7BCRQ

See similar textbooks

Similar questions

When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
Which of the following is not true about the MACRS depreciation system: A salvage value must be determined before depreciation percentages are applied to depreciable real estate. Residential rental buildings are depreciated over 27.5 years straight-line. Commercial real estate buildings are depreciated over 39 years straight-line. No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid-month for MACRS depreciation purposes.
Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2020, July 1 Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50. Nov. 3 Incurred ordinary repairs on computer of $140. Dec. 31 Recorded 2020 depreciation on the basis of a four year life and estimated salvage value of $500. 2021, Dec. 31 Recorded 2021 depreciation. 2022, Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Sheridan's Repair Service uses the straight-line method of depreciation. The company's fiscal year-end is December 31. The following transactions and events occurred during the first three years. Purchased equipment from the Equipment Center for $7,900 cash plus sales tax of $580, and shipping costs of $490. 2021 July 1 Nov. 3 Incurred ordinary repairs on computer of $280. Dec. 31 Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $450. 2022 Dec. 31 Recorded 2022 depreciation. Paid $2,900 fora major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. 2023 Jan. 1 Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Prepare the necessary…
Metlock Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2020 July 1 Purchased a computer from the Computer Center for $1,950 cash plus sales tax of $180, and shipping costs of $70. Nov. 3 Incurred ordinary repairs on computer of $160. Dec. 31 Recorded 2020 depreciation on the basis of a four-year life and estimated salvage value of $400. 2021 Dec. 31 Recorded 2021 depreciation. 2022 Jan. 1 Paid $200 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer. 1. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. If no entry is required, select "No…
Wildhorse Company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions occurred during 2025. Jan. 1 May 13 Dec. 31 Purchased equipment from the Indigo Company on account for $14,700 plus sales tax of $1,975 and shipping costs of $625. Paid for $540 routine maintenance on the equipment. Recorded 2025 depreciation on the basis of a 3-year life and estimated salvage value of $6,950. Prepare the necessary entries. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Starz service uses the straight-line method of depreciation. The company’s fiscal year-end is December 31. The following transactions occurred during 2022. January 1 Purchased equipment from the barre company on account for 12,500 plus sales tax of 1,125 and shipping cost of 225 May 13 Incurred 140 routine maintenance on the equipment. Dec 31 Recorded 2022 depreciation on the basis of 3-year life and estimated salvage value of $4,850 Prepare the necessary adjusting journal entries, show computations and explanations of the adjusting entries on the answer sheet. Dates Accounts debit Credit
Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 SYD $34,220 $20060 Machine B 8/15/19 81370 21,630 5 SL 29,870 11948 Machine C 7/21/18 67,200 23,500 8 DDB (A) (B) Machine D (C) 225,570 71,070 5 SYD 72,100 (D)
Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 (a) $34,220 (b) $ Machine B 8/15/19 (c) 21,630 5 SL 29,870 (d) Machine C 7/21/18 67,200 23,500 8 DDB (e) (f) Machine D (g) 225,570 71,070 5 SYD 72,100 (h)
Prepare the journal entries to record the following transactions for Wildhorse Company, which has a calendar year end and uses the straight-line method of depreciation. On September 30, 2022, the company sold old equipment for $119,600. The equipment was purchased on January 1, 2020, for $249,600 and was estimated to have a $41,600 salvage value at the end of its 5-year life. Depreciation on the equipment has been recorded through December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) On June 30, 2022, the company sold old equipment for $62,400. The equipment originally cost $93,600 and had accumulated depreciation to the date of disposal of $39,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
A copier was purchased for $7,211.45 on February 3, 2015. 200% MACRS is the method used to depreciate this copier and the depreciation is recorded at the end of each month. On August 27, 2015, the copier breaks and a cash refund of $6,200.00 is provided. Create the general journal entry to record the assest disposal of this copier (check figure: Loss on Asset Disposal = $224.75)
Current Attempt in Progress Prepare the journal entries to record the following transactions for Blue Spruce Inc., which has a calendar year end and uses straight- line depreciation. (a) On June 30, 2022, the company sold office equipment for $21,500. The office equipment originally cost $34,000 and had accumulated depreciation to the date of disposal of $15,500. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date June 30, 2022 Sept 30, 2022 Save for Later Account Titles and Explanation Debit Attempts-0 of 1 used Credi