DETL Corp. made an ordinary repair to a delivery truck with a remaining useful life of three years at a cost of $200. DETL's accountant debited the asset account, Equipment. Was this treatment an error, and if so, what will be the effect on DETL's financial statements?
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DETL Corp. made an ordinary repair to a delivery truck with a remaining useful life of three years at a cost of $200. DETL's accountant debited the asset account, Equipment.
Was this treatment an error, and if so, what will be the effect on DETL's financial statements?
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- Pharoah Company has delivery equipment that cost $47,800 and has been depreciated $25,000. Record entries for the disposal under the following assumptions. (Credit account titles are automatically Indented when amount Is Do not Indent manually. If no entry Is requlred, select "No Entry" for the account titles and enter O for the amounts.) (a) It was scrapped as having no value. (b) It was sold for $37,200. (c) It was sold for $19,900. No. Account Titles and Explanation Debit Credit (a)Tamarisk, Inc. has equipment that cost $79,900 and that has been depreciated $50,500. Record the disposal under the following assumptions. (a) (b) (c) It was discarded with no cash received. It was sold for $23,800. It was sold for $32,100. (Credit account titles are automatically indented when 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.) No. Account Titles and Explanation (a) Debit CreditOn May 1, a commercial baking company purchased a commercial oven on account. The oven costs $40,000, has a life of 5 years, and has no salvage value. The company ordinally uses straight-line depreciation. The company recorded the following transaction. Debit equipment maintenance expense $40,000; credit Accounts payable $40,000. The company paid for the oven in June. If the company does not correct this error before December 31, which impact will the error have on the balance sheet? Property. plant, and equipment (PP&E) will be understated Operating expenses will be understated Property. plant and equipment (PP&E) will be overstated Accumulated depreciation will be overstated A hospital accidentally invoiced a patient twice for the same treatment, which cost $800. The patient received two invoices and paid them both. The hospital recorded $1,600 of revenue and $1,600 of payments. If the books have not been closed for this period, which entry would correct the hospital's error? • Debit…
- Prepare journal entries to record these transactions. (Credit account titles are automatically indented when 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.) Blossom Company retires its delivery equipment, which cost $40,000. Accumulated depreciation is also $40,000 on this delivery equipment. No salvage value is received. Assume the same information as in part (a), except that accumulated depreciation for the equipment is $36,000 instead of 40,000. (a) (b) No. Account Titles and Explanation Debit Credit (a) (b)The information provided to you is as follows: Purchase of machinery (!/9/2019) instead of € 32,400 with cash was registered as a purchase of different materials of equal value. The result of the error was to calculate and recognize the consumption of the various materials (theentire amount of the various materials) and not to calculate the depreciation of the machines (annual depreciation 3.240 €). Correction of accounting error is carried out 1/1/2020. The correction record is requested a) if the error was found in the fiscal year (2020) and b) if the error was found in the next financial year (2021) i.e. the error while the correction entry was made in 2020 takes place on 1/1/2021.A company purchased a commercial dishwasher by paying cash of $5,900. The dishwasher's fair value on the date of the purchase was $6,270. The company incurred $300 in transportation costs, $310 installation fees, and paid a $120 fine for illegal parking while the dishwasher was being delivered. For what amount will the company record the dishwasher?
- An annual report of Costco Wholesale Corporation, the large discount company, contained the following statement:“The Company periodically evaluates long-lived assets for impairment when circumstances occur that may indicate the carrying amount of the asset group may not be fully recoverable”. Why would the concept of impairment be referred to as a conservative accounting approach?ABC Engineering Company has bought an equipment for RO 100,000 with an estimated useful life of 4 years. Accounting Manager, is responsible to calculate the depreciation to record in the books of accounting. He is confused in selecting the method of depreciation like WDV or Straight-line method. He came to know that the expected scrap value at the end of its useful life is RO 20,000. Why should the company record depreciation in the books of accounts? What would be book value of the machinery at the end 4 years using WDV method and Straight-line method. comment on the depreciation method that is more suitable for the accounting purpose What is the scrap(salvage) value of the machine? DiscussThe following are the transactions of Morrell Corporation: Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,640 and their Accumulated Depreciation was $4,640. No residual value was received. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $3,280. Prepare journal entries to record above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
- Prepare journal entries to record these transactions. (a) Blue Spruce Corp. retires its delivery equipment, which cost $44,000. Accumulated depreciation is also $44,000 on this delivery equipment. No salvage value is received. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Save for Later Debit Credit Attempts: 0 of 2 used Submit AnswerWashburn Company spent $10 million to purchase a new patented technology, debiting an intangible asset and crediting cash. Washburn uses SYD depreciation on its depreciable assets and plans to amortize the intangible asset on a straight-line basis. The appropriate accounting treatment is that Washburn Multiple Choice о is not required to make any accounting adjustments. о is required to adjust a change in accounting estimate prospectively. О has made a change in accounting principle, requiring retrospective adjustment. О needs to correct an accounting error.A truck costing $114000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $55000. An insurance check for $129000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a O credit to the Truck account of $59000. ○ credit to the Accumulated Depreciation account for $55000. ○ Gain on Disposal of $70000. ○ Gain on Disposal of $15000. eTextbook and Media