Question

1.Trouble Company purchased equipment on January 1, 2016, for $60,000. It is estimated that the equipment...

1.Trouble Company purchased equipment on January 1, 2016, for $60,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.

Compute depreciation expense for 2016 using the straight-line method of depreciation.

2. Adriane’s Grocery Store had a beginning inventory of $14,000 and an ending inventory of $19,000. Net sales during the year amounted to $78,000 and gross profit was $12,000. The inventory turnover ratio was:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer to the above question is shown.

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
Leo Company purchased equipment on January 1, 2014 for $90,000. It is estimated that the equipment...
Leo Company purchased equipment on January 1, 2014 for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Answer Questions below: 1. Compute the amount of depreciation expense for the year ended December 31, 2014, using the straight-line method of depreciation. 2. If 16,000 units of product are produced in 2014 and 24,000...
ABC Company purchased equipment on January 1, 2009 for $70,000. It was estimated that the equipment...
ABC Company purchased equipment on January 1, 2009 for $70,000. It was estimated that the equipment would have a $5,000 salvage value at the end of its 4-year useful life. It was also estimated that the equipment would produce 100,000 units over its 4-year life. The company used the straight-line depreciation method. If 16,000 units of product were produced in 2009 and 24,000 units were produced in 2010, what was the book value of equipment at December 31, 2010?
Assume that Sample Company purchased factory equipment on January 1, 2016, for $60,000. The equipment has...
Assume that Sample Company purchased factory equipment on January 1, 2016, for $60,000. The equipment has an estimated life of five years and an estimated residual value of $6,000. Sample’s accountant is considering whether to use the straight-line or the units-of-production method to depreciate the asset. Because the company is beginning a new production process, the equipment will be used to produce 10,000 units in 2016, but production subsequent to 2016 will increase by 10,000 units each year. Required: Calculate...
On January 1, 2016, Sparks Company purchased for $360,000 snow-making equipment having an estimated useful life...
On January 1, 2016, Sparks Company purchased for $360,000 snow-making equipment having an estimated useful life of 8 years with an estimated salvage value of $25,000 and 500,000 units expected to be produced. Depreciation is taken for the portion of the year the asset is used. (a) Complete the form below by determining the depreciation expense and year-end book values of 2015 and 2016 using the 1. Straight Line Method 2. Production assuming 50,000 units produced in 2016 and 60,000...
On January 1, 2016, Walid Company purchases equipment for $12,000 with 4 years estimated useful life...
On January 1, 2016, Walid Company purchases equipment for $12,000 with 4 years estimated useful life and no salvage value. On December 31, 2019, Walid Company retires the equipment. The straight-line method of depreciation is applied and financial statements are prepared yearly. The retirement entry is: *
Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to...
Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 8 years. Straight-line depreciation is used. If the equipment is sold on July 1, Year 5 for $20,000, the journal entry to record the sale will include a: Select one: a. Debit to accumulated depreciation for $22,500. b. Credit to loss on sale for $10,000. c. Credit to cash for $20,000. d....
Blue Spruce Corp. purchased equipment on January 1, 2021 for $162,000. It is estimated that the...
Blue Spruce Corp. purchased equipment on January 1, 2021 for $162,000. It is estimated that the equipment will have a $9,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 180,000 units over its 5-year life. Answer the following independent questions. Compute the amount of depreciation expense for the year ended December 31, 2021 using the straight-line method of depreciation. Straight-line method $enter the depreciation expense under the straight-line method...
Genco Manufacturing purchased a piece of equipment on July 26th, 2016, at a cost of $72,000....
Genco Manufacturing purchased a piece of equipment on July 26th, 2016, at a cost of $72,000. The estimated residual value is $5,400 with a useful life of 5 years. Assume a production life of 60,000 units. Compute the depreciation for years 2016 and 2017 using the two depreciation methods below; Straight Line Method Units-of-production (in 2016, there was 5,000 units produced, and in 2017, there were 18,000 units produced).
A company purchased factory equipment on April 1, 2018 for $166000. It is estimated that the...
A company purchased factory equipment on April 1, 2018 for $166000. It is estimated that the equipment will have a $18000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2018 is
Case E. Matson Company purchased the following on January 1, 2016:      • Office equipment at...
Case E. Matson Company purchased the following on January 1, 2016:      • Office equipment at a cost of $42,000 with an estimated useful life to the company of three years and a residual value of $12,600. The company uses the double-declining-balance method of depreciation for the equipment. • Factory equipment at an invoice price of $806,800 plus shipping costs of $22,000. The equipment has an estimated useful life of 112,000 hours and no residual value. The company uses the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT