Required informationCP9-1 (Algo) Computing Acquisition Cost and RecordingDepreciation under Three Alternative Methods [LO 9-2, LO 9-3][The following information applies to the questions displayedbelow.]At the beginning of the year, Seraglio Companies boughtmachinery, shelving, and a forklift. The machinery initially cost$32,800 but had to be overhauled (at a cost of $2,640) before itcould be installed (at a cost of $1,320) and finally put into use. Themachinery's total life was estimated as 40,000 hours, with anestimated residual value of $1,000. The machinery was actuallyused 5,000 hours in year 1 and 7,000 hours in year 2. Repair costswere $530 in each year.The shelving cost $10,200 and was expected to last 5 years, with aresidual value of $780. The forklift cost $18,900 and was expectedto last six years, with a residual value of $2,360.CP9-1 (Algo) Part 55. Compute double-declining-balance depreciation expense foryears 1 and 2 for the forklift. TIP: Remember that the formula fordouble-declining-balance uses cost minus accumulateddepreciation (not residual value).Double-declining-balanceYear 1Year 2

The double declining balance depreciation method is a form of accelerated depreciation that doubles…

Answered: Required information CP9-1 (Algo)…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.7AMCP

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Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Shamrock Unlimited bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs. Renovation costs prior to use. Repairs after production began PA9-1 (Algo) Part 3 3. Prepare the journal entry to record year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value. (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 K
Required information PB9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Goldenrod Corporation bought a shed, a machine, and a trailer. The shed Initially cost $20,800 but had to be renovated at a cost of $640. The shed was expected to last 7 years, with a residual value of $1,700, Repairs costing $460 were incurred at the end of the first year of use. The machine cost $11,500, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2.. The trailer cost $11,800 and was expected to last 4 years, with a residual value of $2,000. PB9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for the shed. Total cost
Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Shamrock Unlimited bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began Saved $9,400 840 720 590 Year 2 units-of-production depreciation expense PA9-1 (Algo) Part 4 4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $43,680, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.)
Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Algernon Companies bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,000 900 900 710 PA9-1 (Algo) Part 3 3. Prepare the journal entry to record year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 and $1,000 residual value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account years field.)
Required information CP9-1(Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Soldano.com bought machinery, shelving, and a forklift. The machinery initially cost $32,000 but had to be overhauled (at a cost of $2,480) before it could be installed (at a cost of $1,240) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $510 in each year. The shelving cost $10,100 and was expected to last 5 years, with a residual value of $760. The forklift cost $18,000 and was expected to last six years, with a residual value of $2,320. CP9-1 (Algo) Part 2 2. Compute year 2 units-of-production depreciation expense for the machinery. (Do not round intermediate calculations.) X…
Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year. The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060. CP9-1 (Algo) Part 6 6. Prepare the journal entry to record double-declining balance depreciation expense for the forklift for year 2. (If…
Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year. The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060. CP9-1 (Algo) Part 5 5. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklift. TIP: Remember that the…
Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year. The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060. CP9-1 (Algo) Part 4 4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.…
! Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Daffodil Company bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 4 $9,500 850 750 610 4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $44,100, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.) Year 2 units-of-production depreciation expense
! Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Daffodil Company bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for Machine A. Total cost $9,500 850 750 610 $
Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Daffodil Company bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset. Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 5 5. Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $44,100, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)…
Required information PB9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods (LO 9-2, LO 9-3) (The following information applies to the questions displayed below.) At the beginning of the year, Canary.com bought a shed, a machine, and a trailer. The shed initially cost $20,300 but had to be renovated at a cost of $540. The shed was expected to last 7 years, with a residual value of $1,450. Repairs costing $360 were incurred at the end of the first year of use. The machine cost $11,250, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2. The trailer cost $11,300 and was expected to last 4 years, with a residual value of $2,000. PB9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for the shed. Renovation costs Total cost

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