At the beginning of the year, Buffalo Machinery 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 7. Prepare the journal entry to record year 2 double-declining balance depreciation expense for Machine C, which has a cost of $26,500, an estimated life of 10 years, and $1,400 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 < A $10,100 910 930 730 Record the year 2 depreciation expense for Machine C. Note: Enter debits before credits.

At the beginning of the year, Buffalo Machinery 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 7. Prepare the journal entry to record year 2 double-declining balance depreciation expense for Machine C, which has a cost of $26,500, an estimated life of 10 years, and $1,400 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 < A $10,100 910 930 730 Record the year 2 depreciation expense for Machine C. Note: Enter debits before credits.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PB: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
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At the beginning of the year, Grillo Industries 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 6. Compute years 1 and 2 double-declining-balance depreciation expense for Machine C, which has a cost of $25,400, an estimated life of 10 years, and $1,400 residual value. Double-declining balance Year 1 $9,000 800 600 500 Year 2
Yazzie Incorporated bought a machine at the beginning of the year at a cost of $34,000. The estimated useful life was five years and the residual value was $4,000. Required: 1. Complete a depreciation schedule for the straight-line method. 2. Prepare the journal entry to record Year 2 depreciation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Year 2 depreciation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No X Answer is not complete. A Transaction 1 General Journal Depreciation Expense Accumulated Depreciation-Equipment Depreciation Expense Accumulated Depreciation-Equipment Depreciation Expense Accumulated Depreciation-Equipment Debit 6,000✔ Credit 6,000✔ Re
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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 $9,200 Installation costs 820 Renovation costs prior to use 660 Repairs after production began 550 Required: 1. Compute the amount to be capitalized for Machine A.
Kingbird Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance 1 $12,780 $21,300 $28,400 2 12,780 17,040 17,040 3 12,780 12,780 10,224 4 12,780 8,520 6,134 5 12,780 4,260 2,102 Total $63,900 $63,900 $63,900 Answer the following questions. (a) What is the cost of the asset being depreciated? Cost of asset $enter the…
Rembrandt company acquired a plant asset at the beginning of year one. The asset has an estimated service life of five years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using 1) the straight line method, 2) the sum of the years digits method, and 3)the double declining balance method. Year straight line sum of the years digits double declining balance 1 $9000 $15,000 $20,000 2 $9000 $12,000 $12,000 3 $9000 $9000 $7200 4 $9000 $6000 $4320 5 $9000 $3000 $1480 Total $45,000 $45,000 $45,000 a) what is the cost of the asset being depreciated? b) what amount, if any, was used in the depreciation calculations for the salvage value for this asset? c) which method will produce the highest charge to income in Year 1?
Oriole Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance 1 $12,600 $21,000 $28,000 2 12,600 16,800 16,800 3 12,600 12,600 10,080 4 12,600 8,400 6,048 5 12,600 4,200 2,072 Total $63,000 $63,000 $63,000 What is the cost of the asset being depreciated? Cost of asset What amount, if any, was used in the depreciation…