McClain Company incurred the following expenditures during 2019: Apr. 9 the air conditioning system in the old manufacturing facility was replaced for 83,000. the old air conditioning syste, had a cost of $74,000 and a book value of $2,000. the old air conditioning system had no scrap value. June 29 Annual maintenance of $38,000 was performed.
Q: On January 1, 2019, TPS Company purchased for P4,800,000 a machine with a useful life of ten years…
A: The depreciation expense for the year 2021 can be calculated as depreciable basis of asset divided…
Q: At December 31, 2020, the following existed on the records of BULGOGI Co.: Fixed Assets: $86,000…
A: Net Book Value = Fixed Assets - Accumulated Depreciation
Q: Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates:…
A: Depreciation is the loss in the value of a fixed asset due to the normal usage of asset. The value…
Q: On January 1, 2018, Zale Company purchased a building for $560,000. The building was estimated to…
A: Depreciation: Decreasing value of fixed assets over its useful life period.
Q: BUG Company constructed an asset for its own use. Construction started on January 1, 2019 and the…
A: As per IAS 23 in.case of specific borrowings The borrowings cost eligible for capitalisation would…
Q: k purcha
A: Calculation of Depreciation of Building based on straight line method Depreciation = (Original Cost…
Q: During 2019, a company purchased a mine at a cost of $4,251,000. The company spent an additional…
A: Depletion =[ ( Cost - Residual value ) / Estimated tons ] * Number of tons sold
Q: Wardell Company purchased a mini computer on Jan 1, 2019 at a cost of $48,500. The computer has been…
A: Depreciation: It is an expense for the company incurred when assets get uses in the business…
Q: On April 1, 2019, the KB Toy Company purchased equipment to be used in its manufacturing process.…
A:
Q: Winsey Company purchased equipment on January 2, 2019, for $700,000. The equipment has the following…
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…
Q: The cost of equipment purchased by Charleston, Inc., on June 1, 2020, is $89,000. It is estimated…
A: Depreciable amount = $89,000 – $5,000 = $84,000 Sum of the year digits: 1+2+3+4+5+6+7 = 28 2020 =…
Q: Cadillac Construction Company uses the retirement method to determine depreciation on its small…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Straight-line (b) Units-of-output (c) Working hours
A:
Q: McClain Company incurred the following expenditures during 2019: The air conditioning system in the…
A: solution concept If the expenditure increases the efficiency and life then the…
Q: Scott Company purchased equipment for $350,000 on 2020. It is estimated that the equipment will have…
A: Depreciation expense is a non cash expense and it is charged each year for the amount of asset…
Q: Stacey Company operates a small manufacturing facility as a supplement to its regular service…
A: Assets: Assets are the resources of an organization used for the purpose of business operations.…
Q: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation…
A: Unerdepreciated value as on January 2021 = Cost of the assets - Accumulated deprecitaion = $2848000…
Q: On July 1, 2019, Osceola Company retired a metal stamping machine that it had originally purchased…
A: Depreciationn is considered a reduction in the value of asset give two uses of that asset. We can…
Q: Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the…
A: Assets, liabilities, and stockholders' equity are presented in the balance sheet of the company.
Q: The cost of equipment purchased by Charleston, Inc., on January 1, 2020, is $89,000. It is estimated…
A: Depreciation is the systematic decrease in the reported value of an asset throughout its useful life…
Q: JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current…
A: Given Information: Replacement cost on December 31,2019 $1,500,000 Purchased on January 1,2017…
Q: company purchased several pieces of equipment for a total of $ 60,000 on January 1, 2019, which is…
A: Net Book Value of Asset: The value at which a firm reports an asset on its balance sheet is referred…
Q: EXCELSIOR Company started its operations on January 1, 2019> in preparing the financial statements…
A: Depreciation using the straight line method=[ Cost- Residual value]/ Estimated useful life When the…
Q: McClain Company incurred the following expenditures during 2019: Apr. 9 The air conditioning system…
A: Journal entry shows the recording of transactions during an accounting year and every transaction…
Q: JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current…
A: Depreciation: It is the gradual fall in the value of asset due to its normal usage in the production…
Q: Prepare journal entries to record McClain’s expenditures for 2019. 2. Next Level What is the effect…
A: The journal entries that shall be recorded in the books of account of Mclain company are enumerated…
Q: The Pharm Co. self-constructed an asset for its own use. Construction started on Dec. 31, 2019.…
A: If an entity borrows funds specifically to obtain or construct qualifying asset , the borrowing cost…
Q: Alt Company purchased a new piece of manufacturing machinery on January 2, 2021. The machine had a…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: On January 2, 2018, Lapar Corporation purchased a machine for $50,000. Lapar paid shipping expenses…
A: Various depreciable assets employed by the entity has wear and tear over the working period and…
Q: Sunland Company owns equipment that cost $81,000 when purchased on January 2, 2021. It has been…
A: >Accounting principle states that the cost of the long term assets (like equipment) is to be…
Q: McClain Company incurred the following expenditures during 2019: Apr. 9 The air conditioning system…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Presented below are selected transactions for Werley Company for 2021. Jan. 1. Received $9,000…
A: The gain or loss on sale of fixed assets is calculated as difference between cost of assets and book…
Q: The cost of equipment purchased by Bramble, Inc., on June 1, 2020, is $ 92,400. It is estimated that…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: BTS Company purchased machinery for P250,000 on July 1, 2018. Freight and installation costs…
A: Solution... Total cost of machinery = Cost + installation = P250,000 + P18,000 = P268,000…
Q: Mercury Inc. purchased equipment in 2019 at a cost of $207,000. The equipment was expected to…
A: Units of production method is also known as units of activity and units of usage method.This is the…
Q: Wardell Company purchased a minicomputer on January 1, 2019, at a cost of $40,000. The computer was…
A: Depreciation : The decrease in value of fixed tangible assets due to wear and tear is known as…
Q: Sanders Company purchased the following on January 1, 2019: • Office equipment at a cost of…
A: Depreciation is the method to allocate the cost of asset over its useful life. There are many…
Q: At November 1, 2021, the following existed in the records of Lauren Company:Plant and equipment…
A: In this question, we are required to compute the net amount that should appear in Lauren’s statement…
Q: Wardell Company purchased a mainframe on January 1, 2019, at a cost of $48,000. The computer was…
A: Depreciation is a charge against profit. It indicates a diminution in service potential. It is not…
Q: Wardell Company purchased a mainframe on January 1, 2019, at a cost of $40,000. The computer was…
A: Answer: Cost of computer = $40,000 Estimated useful life = 5 years Estimated residual value = $4,000…
Q: On April 1, 2019, the KB Toy Company purchased equipment to be used in its manufacturing process.…
A: Depreciation is the non-cash expense which is reported in the books to record the regular usage of…
Q: The cost of equipment purchased by Charleston, Inc., on June 1, 2020, is $89,000. It is estimated…
A: "Hey, since multiple sub parts are posted, we will answer the first three questions alone. If you…
Q: On November 15, 2021, Trade Company made payments for the following expenditures: Replacement…
A: Solution Concept The expenditures which increases the life of the assets and the operating…
Q: Required information [The following information applies to the questions displayed below.] Complete…
A: Calculation of depreciation and other necessary requirement are as follows.
Q: The cost of equipment purchased by Concord, Inc., on April 1, 2020, is $127,000. It is estimated…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: BILL Company constructed an asset for its own use. Construction started on January 1, 2019 and the…
A: A self-constructed include all such assets which are constructed or made by the organization itself…
Q: Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2017. Depreciation has…
A: Depreciation refers to the permanent decrease in the value of a fixed assets in the company. The…
Q: A company’s annual report as at 31 December 2019 showed equipment part as follows: Equipment (cost)…
A: Working note: Computation of carrying amount of both the machines on June 30, 2020:
Q: Property, plant, and Equipment Birkey Company purchased equipment on January 1, 2020, at a total…
A: Calculation of depreciation using straight line method: Depreciation = (Cost of Machinery - Salvage…
Q: Birkey Company purchased equipment on January 1, 2020, at a total cost of $99,000. The machinery’s…
A: Solution: Introduction: Depreciation means a reduction in the value of an asset due to passage of…
how to journalize
McClain Company incurred the following expenditures during 2019:
Apr. 9 the air conditioning system in the old manufacturing facility was replaced for 83,000. the old air conditioning syste, had a cost of $74,000 and a book value of $2,000. the old air conditioning system had no scrap value.
June 29 Annual maintenance of $38,000 was performed.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was 100,000. No residual value is expected, the remaining estimated life is 10 years, and straight-line depreciation is used. b. All purchases of materials for construction contracts still in progress have been immediately expensed. It is discovered that the use of these materials was 10,000 during 2018 and 12,000 during 2019. c. Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, 40,000 of depreciation was accounted for in that manner. Production was 15,000 units during 2019, of which 3,000 remained in inventory at the end of the year. Assume there was no inventory at the beginning of 2019. Required: Prepare journal entries for the preceding errors discovered during 2020. Ignore income taxes.
- On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.McClain Company incurred the following expenditures during 2019: Apr. June Sept. Dec. 9 The air conditioning system in the old manufacturing facility was replaced for $80,000. The old air conditioning system had a cost of $71,750 and a book value of $1,700. The old air conditioning system had no scrap value. 29 Annual maintenance of $39,500 was performed. 12 The roof of the old manufacturing facility is replaced at a cost of $68,000. This expenditure substantially extended the life of the facility. 28 A new wing was added to the manufacturing facility at a cost of $261,000. This expenditure substantially increased the productive capacity of the plant. Required: 1. Prepare journal entries to record McClain's expenditures for 2019. 2. Next Level What is the effect on the financial statements if management had improperly accounted for the: a. addition of the new wing to the manufacturing facility b. annual maintenance expendituresMcClain Company incurred the following expenditures during 2019: Apr. 9 The air conditioning system in the old manufacturing facility was replaced for $85,500. The old air conditioning system had a cost of $73,750 and a book value of $1,900. The old air conditioning system had no scrap value. June 29 Annual maintenance of $37,000 was performed. Sept. 12 The roof of the old manufacturing facility is replaced at a cost of $64,250. This expenditure substantially extended the life of the facility. Dec. 28 A new wing was added to the manufacturing facility at a cost of $265,000. This expenditure substantially increased the productive capacity of the plant. Required: 1. Prepare journal entries to record McClain’s expenditures for 2019. 2. Next Level What is the effect on the financial statements if management had improperly accounted for the: a. addition of the new wing to the manufacturing facility b. annual maintenance expenditures CHART OF…
- McClain Company incurred the following expenditures during 2019: Apr. 9 The air conditioning system in the old manufacturing facility was replaced for $80,000. The old air conditioning system had a cost of $71,750 and a book value of $1,700. The old air conditioning system had no scrap value. June 29 Annual maintenance of $39,500 was performed. Sept. 12 The roof of the old manufacturing facility is replaced at a cost of $68,000. This expenditure substantially extended the life of the facility. Dec. 28 A new wing was added to the manufacturing facility at a cost of $261,000. This expenditure substantially increased the productive capacity of the plant. Required: 1. Prepare journal entries to record McClain’s expenditures for 2019. 2. Next Level What is the effect on the financial statements if management had improperly accounted for the: a. addition of the new wing to the manufacturing facility b. annual maintenance expendituresMcClain Company incurred the following expenditures during 2019: Apr. 9 The air conditioning system in the old manufacturing facility was replaced for $83,000. The old air conditioning system had a cost of $74,000 and a book value of $2,000. The old air conditioning system had no scrap value. June 29 Annual maintenance of $38,000 was performed. Sept. 12 The roof of the old manufacturing facility is replaced at a cost of $65,000. This expenditure substantially extended the life of the facility. Dec. 28 A new wing was added to the manufacturing facility at a cost of $275,000. This expenditure substantially increased the productive capacity of the plant.On November 15, 2021, Trade Company made payments for the following expenditures: Replacement parts for overhaul of machine 550,000 Labor and overhead in connection with overhaul 140,000 Continuing, frequent and low cost repairs 150,000 Replacement of broken gear of machine 50,000 The overhaul resulted in a significant increase in production. Prepare the journal entry to record the expenditure to be capitalized:
- . On November 15, 2021, Trade Company made payments for the following expenditures: Replacement parts for overhaul of machine 550,000 Labor and overhead in connection with overhaul 140,000 Continuing, frequent and low cost repairs 150,000 Replacement of broken gear of machine 50,000 1. The overhaul resulted in a significant increase in production. 2. the journal entry to record the expenditure to be capitalized would beStacey Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2021, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through 2020 $95,400 60,000 In early January 2021, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment 910 11,100 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years, with a $5,400 estimated residual value. The company's fiscal year ends on December 31. Required: 1. Calculate the depreciation expense for the manufacturing equipment for 2020. Depreciation expense 2. Prepare the journal entries to record the two expenditures that occurred during 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet…Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment $ 3,150 37,000 Major overhaul of the equipment that improved efficiency The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $23,000 estimated residual value. The annual accounting period ends on December 31. Required: Indicate the effects (accounts, amounts, and + for increase and - for decrease) of the following two items on the accounting equation, using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2020. 2. The two expenditures for repairs and…