The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 A building that cost $139,920 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,406 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $16,960 is sold for $3,074 cash, f.o.b. purchaser's plant. Freight of $318 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,540 in 2017. The gear is replaced at a cost of $2,120. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the machine was purchased has to be replaced at a cost of $5,830 because of defective workmanship on the original base. The cost of the machinery was $15,052 in 2019. The

The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 A building that cost $139,920 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,406 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $16,960 is sold for $3,074 cash, f.o.b. purchaser's plant. Freight of $318 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,540 in 2017. The gear is replaced at a cost of $2,120. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the machine was purchased has to be replaced at a cost of $5,830 because of defective workmanship on the original base. The cost of the machinery was $15,052 in 2019. The

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $155,760 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $6,018 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $18,880 is sold for $3,422 cash, fo.b. purchaser's plant. Freight of $354 is paid on the sale of this machinery. A gear breaks on a machine that cost $10,620 in 2017. The gear is replaced at a cost of $2,360. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the machine…
The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $137,280 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,304 and was permitted to keep all materials salvaged. Date Machinery that was purchased in 2018 for $16,640 is sold for $3,016 cash, f.o.b. purchaser's plant. Freight of $312 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,360 in 2017. The gear is replaced at a cost of $2,080. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the…
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20. May 18 June 23 A building that cost $198,000 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,650 and was permitted to keep all materials salvaged. Machinery that was purchased in 2013 for $24,000 is sold for $4,350 cash, fo.b. purchaser's plant. Freight of $450 is paid on the sale of this machinery. A gear breaks on a machine that cost $13,500 in 2012. The gear is replaced at a cost of $3,000. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2014 when the…
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 Date A building that cost $182,160 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,038 and was permitted to keep all materials salvaged. 1/30 Machinery that was purchased in 2013 for $22,080 is sold for $4,002 cash, f.o.b. purchaser's plant. Freight of $414 is paid on the sale of this machinery. A gear breaks on a machine that cost $12,420 in 2012. The gear is replaced at a cost of $2,760. The replacement does not extend the useful life of the machine but does make the machine more efficient. Prepare general journal entries for the…
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 A building that cost $147,840 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $5,712 and was permitted to keep all materials salvaged. Mar. 10 Machinery that was purchased in 2013 for $17,920 is sold for $3,248 cash, f.o.b. purchaser’s plant. Freight of $336 is paid on the sale of this machinery. Mar. 20 A gear breaks on a machine that cost $10,080 in 2012. The gear is replaced at a cost of $2,240. The replacement does not extend the useful life of the machine but does make the machine more efficient. May 18 A special base installed for a machine in 2014…
The following transactions occurred during 2020. Assume that depreciation of 15% per year is charged on all machinery and 7.5% per year on buildings, on a straight-line basis, with no estimated residual value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Feb. 10 A building that cost $115,000 in 2005 is torn down to make room for a new building. The wrecking contractor was paid $5,500 and was permitted to keep all materials salvaged. June 15 Machinery that was purchased in 2016 for $18,000 is sold for $1,500 cash, 10 f.o.b. purchaser’s plant. Freight of $700 is paid on the sale of this machinery. July 28 A special base installed for a machine in 2018 when the machine was purchased has to be replaced at a cost of $7,500 because of defective workmanship on the original base. The cost of the machinery was $14,500 in 2018. The cost of the base was $5,000, and this amount was…
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 A building that cost $132,000 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $5,100 and was permitted to keep all materials salvaged. Mar. 10 Machinery that was purchased in 2013 for $16,000 is sold for $2,900 cash, f.o.b. purchaser’s plant. Freight of $300 is paid on the sale of this machinery. Mar. 20 A gear breaks on a machine that cost $9,000 in 2012. The gear is replaced at a cost of $2,000. The replacement does not extend the useful life of the machine but does make the machine more efficient. May 18 A special base installed for a machine in 2014 when the…
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. A building that cost $168,960 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,528 and was permitted to keep all materials salvaged. Jan. 30 Machinery that was purchased in 2013 for $20,480 is sold for $3,712 cash, f.o.b. purchaser's plant. Freight of $384 is paid on the sale of this machinery. Mar. 10 Mar. 20 A gear breaks on a machine that cost $11,520 in 2012. The gear is replaced at a cost of $2,560. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2014 when the machine was purchased…
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5 % per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. A building that cost $ 171,600 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,630 and was permitted to keep all materials salvaged. Jan. 30 Machinery that was purchased in 2013 for $ 20,800 is sold for $ 3,770 cash, f.o.b. purchaser's plant. Freight of $ 390 is paid on the sale of this machinery. Mar. 10 Mar. 20 Agear breaks on a machine that cost $ 11,700 in 2012. The gear is replaced at a cost of $ 2,600. The replacement does not extend the useful life of the machine but does make the machine more efficient. Aspecial base installed for a machine in 2014 when the machine was…
Machinery purchased for $64,200 by Sheridan Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,280 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,815 at the end of that time. Assume straight-line depreciation. (a) X Your answer is incorrect. Prepare the entry to correct the prior years' depreciation, if necessary. (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. List debit entry before credit entry.) Account Titles and Explanation Accumulated Depreciation - Machinery Debit MacBook 7757.5 Credit
9.On January 1, 2018, a new building was purchased at a cost of P30 million. Depreciation was computed on the straight line basis at 4% per year. On December 31, 2019, after recording the depreciation for the year, the building was appraised and was reported to have a fair value of P36 million and an estimated remaining life of fifteen years. This was the first revaluation made on the building since its acquisition. It is the company's policy to transfer a portion of the revaluation surplus to retained earnings as the asset is being used for its remaining life.What is the revaluation surplus balance reported in the financial statements at December 31, 2021?
On September 20, 2020, Shamille Company purchased machinery for P7,600,000. Residual value wasestimated to be P400,000. The machinery is depreciated over eight years using the sum of the years’ digitsmethod. Depreciation is computed on the basis of the nearest fullest month. What amount should be recordedas depreciation for 2021?A. 1,450,000B. 1,600,000C. 1,550,000D. 1,400,000