Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 3, Problem 4SE
To determine
Prepare the
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The estimated amount of depreciation on equipment for the current year is $8,330.
Journalize the adjusting entry, to record the depreciation. Refer to the Chart of Accounts for exact wording of account titles.
Calculate the Annual Depreciation for each listed asset.
Assume the assets were purchased on January 1st and used for 12 months.
The first asset has been completed.
Utilize the straight-line depreciation method: (Original cost - Estimated Salvage Value) / Estimated Useful Life = Annual Depreciation
Plant Asset
Cash register
Computer
Vehicle
Machinery
Desk
Asset
Original Cost
500.00
4,500.00
15,500.00
8,000.00
2,500.00
Calculate the amount to be depreciated:
Annual
Depreciation
Cash register
Computer
Vehicle
Machinery
Desk
Estimated
Salvage Value
25.00
800.00
3,000.00
1,200.00
200.00
67.86
Estimated
Useful Life
7 years
5 years
10 years
5 years
15 years
Questions? Contact your instructor!
Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?
Chapter 3 Solutions
Principles of Accounting
Ch. 3 - Prob. 1DQCh. 3 - Will the carrying value of a long-term asset...Ch. 3 - If, at the end of the accounting period, you were...Ch. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Match the concepts of accrual accounting that...Ch. 3 - The Prepaid Insurance account began the year with...Ch. 3 - The Supplies account began the year with a balance...Ch. 3 - Prob. 4SE
Ch. 3 - Prob. 5SECh. 3 - During the month of August, deposits in the amount...Ch. 3 - Prob. 7SECh. 3 - Malesherbes Companys adjusted trial balance on...Ch. 3 - Prob. 9SECh. 3 - Prob. 10SECh. 3 - Carlos Companys accountant makes the assumptions...Ch. 3 - Four conditions must be met before revenue should...Ch. 3 - Prob. 3EACh. 3 - Prob. 4EACh. 3 - Prob. 5EACh. 3 - Prob. 6EACh. 3 - Prob. 7EACh. 3 - Prob. 8EACh. 3 - Prepare year-end adjusting entries for each of the...Ch. 3 - Prob. 10EACh. 3 - Prob. 11EACh. 3 - Wipro Companys income statement included the...Ch. 3 - At the end of the first three months of operation,...Ch. 3 - On November 30, the end of the current fiscal...Ch. 3 - Kinokawa Consultants Companys trial balance on...Ch. 3 - Hertz Limo Service was organized to provide...Ch. 3 - At the end of its fiscal year, Berwyn Cleaners...Ch. 3 - Brave Advisors Services trial balance on December...Ch. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9APCh. 3 - On March 31, the end of the current fiscal year,...Ch. 3 - Lee Technology Corporations trial balance on...Ch. 3 - Prob. 12APCh. 3 - Prob. 13APCh. 3 - Scoop Consulting Services trial balance on...Ch. 3 - Prob. 15APCh. 3 - Prob. 16APCh. 3 - Never Flake Company provided a rust-prevention...Ch. 3 - Prob. 2CCh. 3 - Prob. 3CCh. 3 - Prob. 4CCh. 3 - Prob. 5CCh. 3 - Prob. 6C
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- The estimated amount of depreciation on equipment for the current year is $6,880.Journalize the adjusting entry (include an explanation) to record the depreciation.arrow_forwardAloha Company is starting its new fiscal year on July 1. The company has owned a specialized piece of equipment for three years that it depreciates using the straight-line method. The equipment was estimated to have a useful life of seven years, and the company feels that this estimate is still reasonable. Which reversing entry should the company make on July 1 to reverse the adjusting entry recorded on June 30, the end of the fiscal year, for depreciation on the equipment? a.Debit Accumulated Depreciation—Equipment and credit Equipment b.Debit Accumulated Depreciation—Equipment and credit Depreciation Expense—Equipment c.No reversing entry should be recorded. d.Debit Depreciation Expense—Equipment and credit Accumulated Depreciation—Equipmentarrow_forwardCalculating and Journalizing Depreciation Equipment records for Johnson Machine Co. for the year follow. Johnson Machine uses the straight-line method of depreciation. In the case of assets acquired by the fifteenth day of the month, depreciation should be computed for the entire month. In the case of assets acquired after the fifteenth day of the month, no depreciation should be considered for the month in which the asset was acquired. Purchase Salvage Date Asset Price Useful Life Value Purchased Truck #1 $19,050 8 years $3,930 January 1 Truck #2 24,320 8 4,000 April 10 Tractor #1 18,010 5 3,010 May 1 Tractor #2 13,200 6 2,100 June 18 Forklift 38,410 10 3,910 September 1 Required: 1. Calculate the depreciation expense for Johnson Machine as of December 31, 20--. 2. Prepare the entry for depreciation expense using a general journal. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- 1 Dec. 31 1 2 2arrow_forward
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