6 Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $121,500. The PPEsubledger shows the following information regarding the boat:ComponentFibreglass bodyMotorView transaction listFishing Boat - 22 Foot With Inboard Motor:Deprec.MethodSLSLRequired:1. Record the appropriate entries regarding thea. Purchase of the replacement motor on June 27, 2020.Date of PurchaseApr. 9/12Apr. 9/12On June 27, 2020, $81,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had anestimated useful life of 12 years and a residual value of $6,000. Early in 2020, it was determined that the useful life of the boat'sfibreglass body should be adjusted to a total of 20 years with no change in the residual value.Journal entry worksheet1 2DateJune 27, 2020Note: Enter debits before credits.Record entryRecord to update depreciation in 2020 regarding motor being replaced.Cost$ 46,50075,000$121,500General JournalEst.Residual$9,000-0-Clear entryDebitEst. Life15 yr10 yrCreditView general journal b. Depreciation taken on the fishing boat (body plus motor) on December 31, 2020, the company's year-end. (Do not roundintermediate calculations and round final answers to whole dollars.)View transaction listJournal entry worksheet<1Record revised depreciation for 2020 on the boat (boat body plus motor).Note: Enter debits before credits.DateDec 31, 2020Record entryGeneral JournalClear entryDebitCreditView general journal>2. Calculate total depreciation taken on the fishing boat (body plus motor) for the company's year ended December 31, 2020. (Roundthe final answers to the nearest whole dollar.)Total 2020 depreciation

Depreciation is an important expense that lets you know the worth of an asset over time. It also…

Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $121,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL View transaction list Date of Purchase Apr. 9/12 Apr. 9/12 Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. On June 27, 2020, $81,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $6,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value. Journal entry worksheet 1 2 Date June 27, 2020 Note: Enter debits before credits. Cost $ 46,500 75,000 $121,500 Record to update depreciation in 2020 regarding motor being replaced. Est. Residual $9,000 -0- General Journal Debit Est. Life 15 yr 10 yr Credit

Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $121,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL View transaction list Date of Purchase Apr. 9/12 Apr. 9/12 Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. On June 27, 2020, $81,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $6,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value. Journal entry worksheet 1 2 Date June 27, 2020 Note: Enter debits before credits. Cost $ 46,500 75,000 $121,500 Record to update depreciation in 2020 regarding motor being replaced. Est. Residual $9,000 -0- General Journal Debit Est. Life 15 yr 10 yr Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9EA: Santa Rosa recently purchased a new boat to help ship product overseas. The following information is...

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Ocean Fishers Ltd had a 22-foot fishing boat with an inboard motor that was purchased on April 9, 2012, for $116,500. The PPE subledger shows the following information regarding the boat: Component Fibreglass body Motor Fishing Boat - 22 Foot With Inboard Motor: Deprec. Method SL SL Date of Purchase Apr. 9/12 Apr. 9/12 Cost $ 43,500 73,000 $116,500 Required: 1. Record the appropriate entries regarding the a. Purchase of the replacement motor on June 27, 2020. Est. Residual $9,000 -0- Est. Life 15 yr 10 yr On June 27, 2020, $79,000 cash was paid for a new motor to replace the old one, which was scrapped. The new motor had an estimated useful life of 12 years and a residual value of $4,000. Early in 2020, it was determined that the useful life of the boat's fibreglass body should be adjusted to a total of 20 years with no change in the residual value.
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