At the beginning of the current year, Andy Company has equipment that originally cost $70,000, has $49,000 accumulated depreciation, and is being depreciated at $7,000 per year. Andy sells this equipment for $15,500 at the end of the current year. Required:   Prepare journal entries to record both the current year’s depreciation and the disposal of the equipment.

Q: What is the amount of the gain or loss on this transaction?

A: Depreciation - This is the Method to Expense for using the asset during the period for the business…

Q: On January 1, 20X1, the company purchased an equipment for $180,000. The equipment has a useful life…

A: Given, Jan 1 20X1: Purchase cost=$180,000Useful life=12 yearsResidual value=0

Q: Farmer Company purchased equipment on January 1, Year 1 for $106,000. The equipment is estimated to…

A: Initial straight-line depreciation = (Price - Salvage value) / Useful life = ($106,000 - $15,000) /…

Q: On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($100000 - 10000)…

Q: On January 1, 2021, Piling Company has Land, Building and Machinery with brought forward balances…

A: Total accumulated depreciation on December 31, 2021 = Total accumulated depreciation on January 01,…

Q: Sandhill Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a…

A: The impairment loss is calculated as difference between the book value of an asset and fair value of…

Q: black jack company purchased an automotive equipment of june 30, 2018 for 3,000,000. at the date of…

A: Depreciation expense is the charge against income each year for the wear and tear of the equipment…

Q: Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The…

A: Methods of depreciation: Straight-line method Double declining method Sum of years digit method…

Q: On September 30, 2018, Bricker Enterprises purchased a machine for OMR 11,000. The estimated service…

A: Depreciation is the decrease in value of an asset due to various reasons like wear and tear,…

Q: Popular Company utilizes a calendar year as its fiscal year and depreciates plant assets using the…

A: Depreciation is reduction in value of asset due to wear and tear, technological advantage and other…

Q: On January 1, Year 1, the Starshina Company paid $25,000 for a photocopier with an estimated useful…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $52,000. It is…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS    A1) Annual depreciation = (Cost price - Residual…

Q: Glacier Company purchased a machine which was installed and put into service on January 1, 2019 at a…

A: Depreciation is computed by dividing the depreciable value of the asset divided by the useful life…

Q: At January 1, 2021, Cullumber Limited reported the following property, plant, and equipment…

A: We have the following information: April 1: Purchased land for $4,240,000. Paid $1,190,000 cash and…

Q: Oak Ltd purchased a machine for £40,000. At the end of its useful life of four years, the amount…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has an 8-year life…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: On January 1, 2020, PT C purchased a car from PT D for IDR 300,000,000 which will be used for office…

A: Depreciation: Decreasing value of fixed assets over its useful life period called as depreciation.…

Q: Using straight-line depreciation, calculate depreciation expense for the final (partial) year of…

A: Depreciation expense - This is wear tear expense of the usage of the Asset for the business purpose.…

Q: Calculate the depreciation expense for each of the 5 years of the asset’s useful life.

A: Double diminishing balance method:- Under this method, companies depreciate their assets faster and…

Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $225,000. It is…

A: Answer (a)  Calculation of depreciation (1) using SLM Formula -  (Cost - salvage value) ÷ useful…

Q: [The following information applies to the questions displayed below.] NewTech purchases computer…

A: Double declining rate = 100/4 *2       = 50% Salvage = 26000

Q: Rayya Co. purchases and installs a machine on January 1, 2015, at a total cost of $105,000.…

A: 1) Machine is sold for $45,500 Given, Cost of Machine = $105,000 Salvage Value =  Useful Life = 7…

Q: X purchased a secondhand machinery on 1-2-2018 for Ro.50,000 paid Ro.11,000 for its overhauling and…

A: Depreciation is a costing technique that allocates the cost of a tangible or physical asset's useful…

Q: Chem-Lite, Inc., maintains its accounts on the basis of a fiscal year ending March 31. At March 31,…

A: The following Journal Entry should have been recorded: Date Account Titles and Explanation Post.…

Q: Berman Company sold equipment on July 1, 2019 for $50,000. The equipment had cost $140,000 and had…

A: Berman Company sold equipment on July 1, 2019 for $50,000. The equipment had cost $140,000 and had…

Q: On October 1, 2021, Hess Company places a new asset into service. The cost of the asset is $120,000…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: The following additional information is available at July 31, 2021: (i) Rent of $510,000 was paid on…

A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

Q: Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The…

A: Under Straight-line Depreciation Method :  Yearly Depreciation expense = ( Cost of asset - Salvage…

Q: On January 1, 2015, Indians Corporation bought a factory equipment for 924,000 salvage value was…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has a 8-year life…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called…

Q: Riley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful…

A: In straight line method the depreciation expense will be same for each year of its useful life.…

Q: On May 1, 2021, Q Incorporated entered into the following transactions: a.     Paid advertising…

A: As per Accrual Basis and Matching Concept of Accounting Only Expense which pertains to Reporting…

Q: Glacier Company purchased a machine which was installed and put into service on January 1, 2019 at a…

A: Calculate the depreciation as follows: Depreciation = (Cost of asset - salvage value) / Life

Q: peavey enterprises purchased a depreciable asset for 29,000 on April 1, year 1. The asset will be…

A: Straight-line depreciation seems to be a typical depreciation technique wherein the worth of a fixed…

Q: On September 30, 2022, the company sold old equipment for $119,600. The equipment was purchased on…

A: Depreciation: The charge that declines the value of the fixed assets is known as depreciation.…

Q: On January 1, Phillips Company paid $15,000 to purchase a large piece of equipment that will last 5…

A: Straight line method  Straight line depreciation is the most commonly used and straightforward…

Q: Peavey Enterprises purchased a depreciable asset for $31,000 on April 1, Year 1. The asset will be…

A: given that, Asset purchased as on 1 April  cost of the asset = $31000 method of depreciation = SLM…

Q: On January 2, 2023, Saminski, Inc., acquired equipment for $700,000. The estimated life of the…

A: Depreciation is an expense account that is considered as a reduction in the value of an asset due to…

Q: Astro Company sold equipment on July 1, 2021 for $75,000. The equipment had cost $210,000 and had…

A: Depreciation is charged to record reduction in value of asset over the period of time. It can be…

Q: Berman Company sold equipment on July 31, 2022 for $60,000. The equipment had cost $125,000 and had…

A: Entries required to record the sale of equipment  1) depreciation expense is recorded upto the date…

Q: Presented below is information related to Cramer, Inc. Instructions Comment on the appropriateness…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: [The following information applies to the questions displayed below.] NewTech purchases computer…

A: Formula: Annual Depreciation (straight-line method) = Depreciable value of the assets / Expected…

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: Bergen Company purchased factory equipment which was installed and put into service January 1, 2018…

A: The double-declining method represents the reduction of the depreciation in the value of assets with…

Q: At January 1, 2022, Blossom Company reported the following property, plant, and equipment accounts:…

A: 1)Accumulted depreciation on asset sold on May 1 Deoreciation per annum = 3000000/10 = 300000 per…

Q: Wee Small Company has an asset that was just purchased. The cost of the asset was $72,000. The…

A: Depreciation as per straight line method = (Cost - Salvage value)/Useful life