Question

Fanning Corporation manufactures model airplanes. The company purchased for $125,000 automated production equipment that can make...

Fanning Corporation manufactures model airplanes. The company purchased for $125,000 automated production equipment that can make the model parts. The equipment has a $15,000 salvage value and a 10-year useful life.

Required

  1. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Revision of Depreciation On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was...
Revision of Depreciation On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to have a $10,000 salvage value at the end of its estimated six-year useful life. Straight-line depreciation has been recorded. Before adjusting the accounts for 2019, Moser decided that the useful life of the equipment should be extended by three years and the salvage value decreased to $8,000. a. Prepare a journal entry to record depreciation expense on the equipment for 2019. Round...
Pharoah Company sells equipment on March 31, 2021, for $33,740 cash. The equipment was purchased on...
Pharoah Company sells equipment on March 31, 2021, for $33,740 cash. The equipment was purchased on January 5, 2018, at a cost of $82,500, and had an estimated useful life of five years and a residual value of $2,600. Pharoah Company uses straight-line depreciation for equipment. Adjusting journal entries are made annually at the company’s year end, December 31. 1. Prepare the journal entry to update depreciation to March 31, 2021. 2. Prepare the journal entry to record the sale...
Waterway Company uses special strapping equipment in its packaging business. The equipment was purchased in January...
Waterway Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $ 11,400,000 and had an estimated useful life of  8 years with no salvage value. At December 31, 2017, new technology was introduced that would accelerate the obsolescence ofWaterway’s equipment. Waterway’s controller estimates that expected future net cash flows on the equipment will be $ 7,182,000 and that the fair value of the equipment is $ 6,384,000. Waterway intends to continue using the...
Trainor Corporation purchased equipment at a cost of $500,000. The equipment has an estimated residual value...
Trainor Corporation purchased equipment at a cost of $500,000. The equipment has an estimated residual value of $50,000 and an estimated life of 5 years, or 10,000 hours of operation. The equipment was purchased on January 1, 2020 and was used 2,500 hours in 2020 and 2,100 hours in 2021. On January 1, 2022, the company decided to sell the equipment for $315,000. Trainor Corporation uses the units-of- production method to account for the depreciation on the equipment. Based on...
Martinez Company uses special strapping equipment in its packaging business. The equipment was purchased in January...
Martinez Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $7,800,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2020, new technology was introduced that would accelerate the obsolescence of Martinez’s equipment. Martinez’s controller estimates that expected future net cash flows on the equipment will be $4,875,000 and that the fair value of the equipment is $4,290,000. Martinez intends to continue using the equipment,...
(a)    Brown Company purchased equipment in 2008 for $150,000 and estimated a $10,000 salvage value at...
(a)    Brown Company purchased equipment in 2008 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2014, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2015, the equipment was sold for $40,000.         Indicate the accounts that are increased and/or decreased to remove the equipment from the books of Brown Company on March 31, 2015. (b)    Finney...
Swifty Corporation purchased equipment in January of 2011 for $405000. The equipment was being depreciated on...
Swifty Corporation purchased equipment in January of 2011 for $405000. The equipment was being depreciated on the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2021, when the equipment had been in use for 10 years, the company paid $54000 to overhaul the equipment. As a result of this improvement, the company estimated that the useful life of the equipment would be extended an additional 5 years. What will be...
On January 1 2010 the good ale beer corporation purchased equipment at a cost of $130,000....
On January 1 2010 the good ale beer corporation purchased equipment at a cost of $130,000. It was expected to have a useful life of eight years and no savage value. The straight line depreciation method was used. In January 2012 the estimate is salvage value was revised for $0 to 8400. How much depreciation should good ale beer corporation record 2012
Blossom Company uses special strapping equipment in its packaging business. The equipment was purchased in January...
Blossom Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2019 for $12,300,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2020, new technology was introduced that would accelerate the obsolescence of Blossom’s equipment. Blossom’s controller estimates that expected future net cash flows on the equipment will be $7,749,000 and that the fair value of the equipment is $6,888,000. Blossom intends to continue using the equipment,...
Nanki Corporation purchased equipment on January 1,2016, for $640,000. In 2016 and 2017, Nanki depreciated the...
Nanki Corporation purchased equipment on January 1,2016, for $640,000. In 2016 and 2017, Nanki depreciated the asset on a straight-line basis with an estimated useful life of ten years and a $10,000 residual value. In 2018, due to changes in technology, Nanki revised the useful life to a total of eight years with no residual value. What depreciation would Nanki record for the year 2018 on this equipment - show the journal entry to record the depreciation. Account Dr. Cr....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT