Windsor Company exchanged equipment used in its manufacturin operations of Sheridan Company. The following information perta Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up (a) Windsor Co. $32,480 22,040 14,500 3,480 Sheridan Co. $32,480 11,600 17,980
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Windsor Company exchanged equipment used in its manufacturing operations plus $3,480 in cash for similar equipment used in the operations of Sheridan Company. The following information pertains to the exchange. Prepare the
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- Weird Co. uses straight-line depreciation for its property, plant, and equipment, which, stated at cost, consisted of the following: 12/31/19 12/31/18Land P 250,000 P 250,000Buildings 1,950,000 1,950,000Machinery & equipment 6,950,000 6,500,000TOTAL 9,150,000 8,700,000Accumulated depreciation 4,000,000 3,700,000TOTAL P 5,150,000 P 5,000,000 Weird’s depreciation expense for 2019 and year 2018 was P550,000 and P500,000, respectively. What amount was debited to accumulated depreciation during 2019 because of property, plant, and equipment retirements?Sebastian Company provided the following data pertaining to the total cost, residual value, and estimated life, respectively, of its machinery: Machinery A – 5,500,000; 500,000; 20 Machinery B – 2,000,000; 200,000; 15 Machinery C – 400,000; 0; 5 Sebastian computes depreciation on the straight line method. I What is the composite life of the assets? 13.3 16.0 18.0 19.8 II.. What is the composite rate of the assets? 5.70 6.18 6.25 6.78 III. What is the periodic depreciation of the assets? 450,300 488,220 493,750 535,620equipment of Frown Company. The following information Smile Company exchanged used equipment for another pertains to the exchange: Smile Frown Equipment Accumulated depreciation Fair value of equipment 2,400,000 2,000,000 500,000 2,200,000 1,750,000 500,000 Required: Prepare journal entry on the books of Smile and Frown.
- Lumax LLC purchased property, plant and equipment. The details of the PPE are given below. The appropriate amount of depreciation applicable for the current accounting period shall be: Classification of PPE OMR – cost Useful life Salvage value at the end of life Machinery 1,200,000 25 year 220,000 Land and Building – the part of land value included in the total amount is estimated to be OMR 800,000. 3,500,000 40 years 400,000 Generator engines – life if based on hours operated and during the year the company operated generators for 30,000 hours. 400,000 600,000 hours 25,000 Furniture and fittings 500,000 10 years 100,000Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Single metal housing Motor Blade Date of purchase Jan. 12/21 Jan. 12/21 Jan. 12/21 Depreciation Method* SL DDB SL Cost $ 46,000 32,000 11,400 $ 89,400 Est. Residual Est. Life $ 7,000 15 yrs 10 yrs 5 yrs 2,000 1,200 *SL = Straight-line; DDB = Double-declining-balance On January 7, 2023, the machine blade cracked and it was replaced with a new one costing $11,600 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,500 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2023, it was determined that the useful life on the metal housing should be increased to a total of 18 years instead of 15 years and that the residual value should be increased to $9,200. Required: 1. Prepare the entry to record the purchase of the replacement…(a) Sheridan Company retires its delivery equipment, which cost $47,790. Accumulated depreciation is also $47,790 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,660 instead of $47,790. No. Account Titles and Explanation (a) Accumulated Depreciation-Equipment Equipment (b) Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment Debit Credit I
- Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets April 1 May 1 June 1 Tig as platit assets. July 1 Dec. 31 $29,770,000 During 2023, the following selected cash transactions occurred. 12,500,000 47,890,000 4,870,000 $4,360,000 17,270,000 43,020,000 $64,650,000 Purchased land for $2,030,000. Sold equipment that cost $1,110,000 when purchased on January 1, 2019. The equipment was sold for $666,000. Sold land purchased on June 1, 2013 for $1,490,000. The land cost $391,000. Purchased equipment for $2,580,000. Retired equipment that cost $489,000 when purchased on December 31, 2013.ABC Corp. acquired the following assets on June 30, 20X1: Cost Scrap Value Useful life Tools 21,000 1,000 4 Machines 102,000 7,000 5 Furniture 15,000 0 3 How much is the total depreciation expense at Dec 31, 20X1 using the straight line method?The balance sheet of Alpha Ltd on 31/12/21 is the following ASSETS Plot of land Building Depreciation Vehicle Depreciation. Furniture Depreciation Participations Total fixed assets. Goods Goods in pledge Customers Downpayment to suppliers Prepaid expenses Available Funds Circulating Assets Total assets 31/12/2021 40.000 200.000 -40.000 80.000 -75.000 95.000 -72.000 85.000 313.000 60.000 20.000 30.000 20.000 20.000 107.000 257.000 570.000 31/12/2022 Liabilities Equity (stock price 3€) Statutory Reserves Premium Reserve New result Total Foreign Capitals Long term Loan Bills payable Suppliers Loan with pledged goods Customers' downpayments Expenses payables Prepaid revenues Total Predictions Total liabilities 31/12/2021 180.000 60.000 20.000 -30.000 230.000 120.000 40.000 50.000 14.000 20.000 30.000 20.000 294.000 46.000 570.000 During the use of 2022, the following transactions took place. Sale of goods with value EUR 80,000 and cost EUR 35,000, 80% of them paid by cash and the rest with…
- The following property and equipment section was obtained from a recent Abbott Laboratories 10-K. Property and equipment, at cost Land. $ 370,949 Buildings. Equipment.. Construction in progress.. 2,655,356 8,813,517 920,599 12,760,421 Less: accumulated depreciation and amortization.. Net property and equipment... 6,757,280 $ 6,003.141 Property and Equipment Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets. The following table shows estimated useful lives of property and equipment. Classification Estimated Useful Lives Buildings.. Equipment.. 10 to 50 years (average 27 years) 3 to 20 years (average 11 years) During the year, the company reported $868,808 for depreciation expense. What is Abbott Laboratories' estimated useful life of depreciable assets?The information below was extracted from the books of Let Your Light Shine Enterprise: Non-current Asset Cost (GH¢) Date of Acquisition Date of Disposal Proceed from Disposal (GH¢) Machine A 30,000 03/01/15 31/08/17 18,000 Machine B 40,000 01/07/15 - - Machine C 60,000 30/09/15 01/07/17 50,000 Machine D 80,000 01/04/16 - - Additional information: a) As per the enterprise’s accounting policy, depreciation charged is pro-rated on the basis of months of use. All acquisitions and disposals are on cash basis; b) Machines A and B are depreciated at a rate of 20% on reducing balance basis while Machines C and D at 10% on straight line basis; and c) Accounts are prepared to 31st December every year. You are required to: I. Show the relevant accounts for machinery for years to 31st December, 2017; II. Show the Income statement and the statement of financial position for each of the…Disposition of Assets: Journalizing Mitchell Parts Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Motor #12, which had a cost of $2,800 and accumulated depreciation of Jan. 1 $2,800, was discarded. Motor #8, which had a cost of $4,400 and accumulated depreciation of $4,000, 8 was sold for $200. Motor #16, which had a cost of $5,600 and accumulated depreciation of 14 $5,400, was sold for $450. 2. Assets exchanged or traded in: Feb. 1 Motor #6, which had a cost of $6,000 and accumulated depreciation of $4,800, was traded in for a new motor (#22) with a fair market value of $7,000. The old motor and $5,600 in cash were given for the new motor. ° Motor #9, which had a cost of $5,500 and accumulated depreciation of $5,000, was traded in for a new motor (#23) with a fair market value of $6,500. The old motor and $6,200 in cash were given for the new motor. Required: Prepare general journal entries for the transactions. Page: 1 DOC. POST NO. REF.…
