On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $69,300. The equipment had a three-year estimated life with a $4,800 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,800. Required Compute the depreciation expense for each of the four years, Year 1-Year 4. Depreciation Expense Year 1 Year 2 Year 3 Year 4

On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $69,300. The equipment had a three-year estimated life with a $4,800 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,800. Required Compute the depreciation expense for each of the four years, Year 1-Year 4. Depreciation Expense Year 1 Year 2 Year 3 Year 4

Name: Exercise 8-15A (Algo) Revision of estimated useful life LO 8-7On Janu
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Exercise 8-15A (Algo) Revision of estimated useful life LO 8-7On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $69,300. The equipmenthad a three-year estimated life with a $4,800 salvage val

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 10SPB: IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans...

See similar textbooks

Similar questions

IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.
DEPLETION: CALCULATING AND JOURNALIZING Mineral Works Co. acquired a salt mine at a cost of 1,700,000, with no expected salvage value. The estimated number of units available for production from the mine is 3,400,000 tons. (a) During the first year, 200,000 tons are mined and sold. (b) During the second year, 600,000 tons are mined and sold. REQUIRED 1. Calculate the amount of depletion expense for both years. 2. Prepare general journal entries for depletion expense.
DEPLETION: CALCULATING AND JOURNALIZING Mining Works Co. acquired a copper mine at a cost of 1,200,000, with no expected salvage value. The estimated number of units available for production from the mine is 3,000,000 tons. (a) During the first year, 400,000 tons are mined and sold. (b) During the second year, 700,000 tons are mined and sold. REQUIRED 1. Calculate the amount of depletion expense for both years. 2. Prepare general journal entries for depletion expense.
Exercise 6-14A (Algo) Revision of estimated useful life LO 6-2, 6-6 On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $62,100. The equipment had a three-year estimated life with a $3,300 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,300. Required Compute the depreciation expense for each of the four years, Year 1 to Year 4. Year 1 Year 2 Year 3 Year 4 Depreciation Expense
Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.] On April 1, Cyclone's Co. purchases a trencher for $302,000. The machine is expected to last five years and have a salvage value of $51,000. Exercise 8-12 Double-declining-balance, partlal-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.) Depreciation for the Period End of Period Beginning of Annual Period Period Book Value Depreciation Rate Partial Year Depreciation Expense Accumulated Depreciation Book Value Year 1 Year 2
Revision of Depreciation Equipment with a cost of $180,000 has an estimated residual value of $14,400, has an estimated useful life of 16 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. %$4 10,350 V b. Determine the book value at the end of the tenth year of use. %24 C. Assuming that at the start of the eleventh year the remaining life is estimated to be eight years and the residual value is estimated to be $10,500, determine the depreciation expense for each of the remaining eight years. %$4 Feedback
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $139,100 has an estimated useful life of 16 years, has an estimated residual value of $8,700, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? %$4 Feedback b. Assume that the equipment was sold on April 1 of the fifth year for $98,242. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entrY, leave it blank. Round your answers to the nearest whole dollar if required. Depreciation Expense-Equipment Accumulated Depreciation-Equipmentv Feedback 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank, Do not round intermediate calculations. Cash Accumulated Depreciation-Equipment V Loss on Sale of Equipment y 00 00 000 %24
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Exercise 8-12 Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.) Depreciation for the Period End of Period. Beginning of Period Book Value Depreciation Rate Depreciation Expense Accumulated Annual Period Partial Year Book Value Depreciation Yoor 1
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] On April 1, Cyclone's Co. purchases a trencher for $302,000. The machine is expected to last five years and have a salvage value of $51,000. Exercise 8-11 Straight-line, partial-year depreciation LO C2 Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method. Choose Numerator: Choose Denominator: Annual Depreciation Annual depreciation Depreciation Expense Year Annual Depreciation Fraction of Year First year Second year
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product. Exercise 8-4 (Algo) Straight-line depreclation LO P1 Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: / Choose Denominator: Depreciation expense Year 2 Depreciation Year end book value (Year 2)
Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] aw 11 On April 1, Cyclone Company purchases a trencher for $304,000. The machine is expected to last five years and have a salvage value of $52,000. Exercise 8-12 (Algo) Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.) Annual Period Beginning of Period Book Value Year 1 Year 2 Depreciation for the Period Depreciation Partial Rate Year Depreciation Expense
Straight-Line Depreciation A computer was purchased on January 1 at a cost of $5,000. It has an estimated useful life of five years and an estimated salvage value of $500. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the straight-line method. Computer Depreciation Schedule On January 1 Year Depreciable Cost × Rate (%) = Depreciation Expense AccumulatedDepreciationEnd of Year Book ValueEnd of Year 1 $fill in the blank 1 fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 2 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10 3 fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14 fill in the blank 15 4 fill in the blank 16 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20 5 fill in the blank 21 fill in the blank 22 fill in…