Exercise 9-11 Oriole Company owns equipment that cost $70,000
when purchased on January 1, 2019. It...
Exercise 9-11 Oriole Company owns equipment that cost $70,000
when purchased on January 1, 2019. It has been depreciated using
the straight-line method based on an estimated salvage value of
$10,000 and an estimated useful life of 5 years. Prepare Oriole
Company’s journal entries to record the sale of the equipment in
these four independent situations. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the...
Equipment was acquired on January 1, 2019 at a cost of $197,000.
The equipment was originally...
Equipment was acquired on January 1, 2019 at a cost of $197,000.
The equipment was originally estimated to have a salvage value of
$12,000 and an estimated life of 10 years. Depreciation has been
recorded through December 31, 2021 using the straight-line method.
On January 1, 2022, the estimated salvage value was revised to
$43,000 and the useful life was revised to a total of 8
years.
Prepare the journal entry to record depreciation expense for 2022.
(Credit account titles...
Tamarisk, Inc. owns equipment that cost $62,800 when purchased
on January 1, 2017. It has been...
Tamarisk, Inc. owns equipment that cost $62,800 when purchased
on January 1, 2017. It has been depreciated using the straight-line
method based on an estimated salvage value of $4,600 and an
estimated useful life of 5 years.
Prepare Tamarisk, Inc.’s journal entries to record the sale of the
equipment in these four independent situations. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. Round answers to 0 decimal places, e.g.125.
If no entry is required,...
On October 1, 2020, Monty Equipment Company sold a
pecan-harvesting machine to Valco Brothers Farm, Inc....
On October 1, 2020, Monty Equipment Company sold a
pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a
cash payment Valco Brothers Farm gave Arden a 2-year, $144,800, 10%
note (a realistic rate of interest for a note of this type). The
note required interest to be paid annually on October 1. Monty’s
financial statements are prepared on a calendar-year basis.
Assuming Valco Brothers Farm fulfills all the terms of the note,
prepare the necessary journal entries for...
Oriole Company had the following assets on January 1, 2022.
Item
Cost
Purchase Date
Useful Life...
Oriole Company had the following assets on January 1, 2022.
Item
Cost
Purchase Date
Useful Life
(in years)
Salvage Value
Machinery
$74,000
Jan. 1, 2012
10
$ 0
Forklift
33,000
Jan. 1, 2019
5
0
Truck
39,400
Jan. 1, 2017
8
3,000
During 2022, each of the assets was removed from service. The
machinery was retired on January 1. The forklift was sold on June
30 for $12,300. The truck was discarded on December 31.
Journalize all entries required on...
CC9-1 Accounting for the Use and Disposal of Long-Lived Assets
[LO 9-3, LO 9-5]
[The following...
CC9-1 Accounting for the Use and Disposal of Long-Lived Assets
[LO 9-3, LO 9-5]
[The following information applies to the questions
displayed below.]
Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system
to add to the wellness programs at NGS. The machine was purchased
at the beginning of the year at a cost of $25,000. The estimated
useful life was five years and the residual value was $1,000.
Assume that the estimated productive life of the machine is 10,000
hours....
Problem 10-5A
At December 31, 2017, Grand Company reported the following as
plant assets.
Land
$...
Problem 10-5A
At December 31, 2017, Grand Company reported the following as
plant assets.
Land
$ 3,560,000
Buildings
$29,090,000
Less: Accumulated depreciation—buildings
12,460,000
16,630,000
Equipment
48,930,000
Less: Accumulated depreciation—equipment
5,430,000
43,500,000
Total plant assets
$63,690,000
During 2018, the following selected cash transactions occurred.
April 1
Purchased land for $2,000,000.
May 1
Sold equipment that cost $1,170,000 when purchased on January
1, 2014. The equipment was sold for $702,000.
June 1
Sold land purchased on June 1, 2008 for $1,470,000. The...
PA9-3 Analyzing and Recording Long-Lived Asset Transactions with
Partial-Year Depreciation [LO 9-2, LO 9-3, LO 9-6]...
PA9-3 Analyzing and Recording Long-Lived Asset Transactions with
Partial-Year Depreciation [LO 9-2, LO 9-3, LO 9-6]
[The following information applies to the questions
displayed below.]
Precision Construction entered into the following transactions
during a recent year.
January
2
Purchased a bulldozer for $268,000 by paying $29,000 cash and
signing a $239,000 note due in five years.
January
3
Replaced the steel tracks on the bulldozer at a cost of
$29,000, purchased on account. The new steel tracks increase the
bulldozer's...
Monty Company purchased equipment on January 2, 2013, for $
105,700. The equipment had an estimated...
Monty Company purchased equipment on January 2, 2013, for $
105,700. The equipment had an estimated useful life of 5 years with
an estimated salvage value of $ 13,200. Monty uses straight-line
depreciation on all assets. On January 2, 2017, Monty exchanged
this equipment plus $ 13,100 in cash for newer equipment. The old
equipment has a fair value of $ 53,300.
Prepare the journal entry to record the exchange on the books of
Monty Company. Assume that the exchange...
On January 1, 2014, Packard Company purchased an 80% interest in
Sage Company for $592,700. On...
On January 1, 2014, Packard Company purchased an 80% interest in
Sage Company for $592,700. On this date Sage Company had common
stock of $145,700 and retained earnings of $370,900.
Sage Company’s equipment on the date of Packard Company’s purchase
had a book value of $402,500 and a fair value of $626,775. All
equipment had an estimated useful life of 10 years on January 2,
2009.
Prepare the December 31 consolidated financial statements workpaper
entries for 2014 and 2015 to...