Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. ercise 8.5 Units.of.production doprociation LO D1
Q: After the tangible assets have been adjusted to current market prices, the capital accounts of…
A: A partnership is a form of business in which the founders have unlimited personal liability for the…
Q: Prince Rupert company manufactures product A. B, C and D. Data for the year ended Dec 31, 2021, is…
A:
Q: Initial operating loss related to Property, Plant and Equipment should be A. Capitalized as part of…
A: Answer:- Operating loss:- If a company's operational expenditures surpass its gross earnings, the…
Q: Beltway Co. is considering purchasing equipment that has an initial investment of $41,000. The…
A: Introduction : The profitability index (PI) is a metric for determining the desirability of a…
Q: What is the overhead cost assigned to Product X0 under activity-based costing? (Round your…
A: First stage allocation Processing Supervising Other Total Equipment expense $49,200 $61,500…
Q: towards Company was form accounting fees; P150,000 for legal fees; stock certification costs of…
A: Basic Accounting concept Capitalisation of expense Revenue nature expenses identification
Q: Question 26 ACME Corporation produces scarves for all occasions in a variety of designer colours.…
A: Cost of goods sold - Cost of Goods Sold is the cost incurred to sell the goods to the customer. The…
Q: stion 3: What do by audit evidence ? What are you Unclerstand the poctors to be ansidered when…
A: audit evidence evidence that support and verify the information that has been provided by the…
Q: Record the following month end adjustments in one batch. A.) Memo #0228-Adj1 the month-end accrued…
A: Basic Accounting Concept Journal Entries
Q: Entity A Statement of Comprehensive Income For the year ended December 31, 20x1 Sales 980,000…
A: Cash Flow Statement is a part of Financial Statements which shows the inflow and outflow of cash…
Q: 3) Find the monthly payment and the total intere Suppose the family decides to add an extra $ onthly…
A: Concept of Mortgage and amortization of Loan Calculation of Equalized Payment and Interest there on
Q: Q.2- Mr. Abdullah's medical and personal expenses include the following: Particulars Prescription…
A: Income tax: Income tax is the tax that an individual is responsible for on their earned income. It…
Q: INGAT Company showed the following information related to the accounts receivable in order to…
A: The accounts receivable are reported in the financial statement at the carrying value. The carrying…
Q: which of the following end of teh accounting period is mosi ideal for a business? a. natural…
A: Accounting period The accounting period means the period during which accountants perform functions…
Q: Hodge Co. owns 90 percent of the voting common shares of Bison Co. During 2022, Hodge had sales of…
A: Introduction Intercompany upstream sale of inventory occurs, the effect of this transaction is…
Q: P Company acquired the net assets of S Company of fair value of $2,700,000 on January 1, 2011,…
A: Acquisition is an act of buying/purchasing/acquiring something. Here in the question, Acquisition of…
Q: On March 1, 2021 Aika and Jill formed a partnership with Aika contributing P900,000 cash and Jill…
A: Journal entry is the primary step to record transaction in the books of account. It has debit and…
Q: FILL - UP THE MISSING AMOUNTS: Sales CGS GP 40% Expenses 421,800 Net Profit 58,200 INSTRUCTIONS: DO…
A: In this reverse calculation needs to be done Gross profit = Net profit + expenses Sales - COGS =…
Q: Question 1: How does Ethical reasoning affect both professional judgment and individual judgment…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: If the fair value of net assets is less than the offered price the acquisition considered as a…
A: Fair value of the assets is the amount which can be fetched by entering into sales transaction…
Q: A business received cash of P3,000 in advance for services that will be provided later. The cash…
A: Adjusting journal entry (AJE) refers to the entry which the business made in the general ledger due…
Q: - Celeste Company accepted fre 1, 2017. On July 1, 2017, C What is the total amount recei a.…
A: Discounting of notes refers to the concept when an investor purchases the note comparatively at a…
Q: Why is it important to include the tax effect into cost of capital computations for firms with debt…
A: In case of debt financing company Cost of debt we take for computation of weighted average cost of…
Q: Question 35 How many of the following statements is/are FALSE? 1. An increase in revenue is on the…
A: The question is related to the Basic of Accounting.
Q: Ms. May Putok opened her business, "Putok Accounting Service" in the month of March 2022. March 3 –…
A: Journal Entry The purpose preparing the journal entry to enter the required transaction into debit…
Q: Anaba Sampson is an audit assistant of Global Accountants, a firm of Chartered Accountants. During…
A: Materiality is an accounting concept that stipulates that any factors that are reasonably expected…
Q: Nivea Company is planning to introduce a new product. Market research information suggests that the…
A: Introduction: A product is a tangible thing that is placed on the market for acquisition,…
Q: Company sold 80,000 sold reversible shirts under a new sales promotional program during the year.…
A: Estimated number of unreedemed coupons = (total number of units sold x estimated percentage of…
Q: Mike started a computer programming business (12/2017), Mike’s Programming Service. The following…
A: The financial statements of the business including income statement and balance sheet are prepared…
Q: Question 38 Which of the following adjusting entries need to be reversed in the following year?…
A: Reversal entries are representing the journal entries which prepared for current year based on the…
Q: The Atlantic Medical Clinic can purchase a new computer system that will save $6,000 annually in…
A: The question is related to the Capital Budgeting. The details are given regarding the same.
Q: Benson Airline Company is considering expanding its territory. The company has the opportunity to…
A: Payback period is the time taken by an investment to recover the investment amount paid on an…
Q: If $310,000 of 7% bonds are issued at 97, the amount of cash received from the sale is a.$331,700…
A: Cash received from the sale of the bonds = Face value of the bonds - Discount on bonds where,…
Q: rovide another example of a cost center and explain why you choose that example.
A: Cost center is a department or function within an organization that does not directly add to profit…
Q: Business Unit A, the supplying business unit, is selling to an outside market. It has excess…
A: Transfer price refers to the price which is used by the related parties to charge one another. For…
Q: Which of the following performance measures is most closely associated with the Balanced Scorecard's…
A: There are four perspectives on balanced scorecard they are on Financial, customer, business…
Q: Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next…
A: The production budget seems to be a forecast or estimate of the number of items that the company…
Q: Richard Co. distributes Shoes to retail stores and extends credit terms of 1/10, n/30 to all of its…
A: Journal is the recording of financial transactions using chronological order. It includes the…
Q: Partnership dissolution can be in the following ways except? Select one: a. Wish of any partner…
A: There are two types Dissolution of partnership and dissolution of firm Dissolution of partnership…
Q: Tom and Faith are in a partnership sharing profits and losses in the ratio of 3/5 for Tom and 2/5…
A: Partnership means where two or more person comes together to do joint business and share the common…
Q: The following information is available for Northwest Enterprises Ltd., for the year ended December…
A: given The following information is available for Northwest Enterprises Ltd., for the year ended…
Q: ompute the MIRR statistic for Project I if the appropriate cost of capital is 12 percent. (Do not…
A: Modified internal rate of return (MIRR) is one of the capital budgeting techniques that helps the…
Q: % in the month of sale and 40% in the month following the sale. 3. The company pays for 50% of its…
A: A cash disbursement is a financial outflow made in exchange for goods or services. To reimburse a…
Q: High Step Shoes had annual revenues of $197,000, expenses of $109,700, and dividends of $22,800…
A: A journal entry is used to record a commercial transaction in the accounting records of a…
Q: 25.Adjusting entries a. Bring asset and liability accounts to correct balances. b. Assign revenues…
A: Adjusting entries are generally required and entered at the end of the financial year to ensure that…
Q: A 1000 bond bearing interest at 5.4% payable semi-annually is due in three years. If money is worth…
A: Purchase price of bond can be calculated by determining the present value of bond plus present…
Q: lladium Ltd. is looking to update their cash budget for January to April time period. Based on the…
A: The question is related to the Cash Budget. Cash Budget is a summary of cash receipts and cash…
Q: Problems 1. For the year ended December 31, 2017, Casey Company estimated its allowance for…
A: The uncollectible account expense for the year includes uncollectible provisions made during the…
Q: 2) A purchase of equipment for $18 000 also involved freight charges of $500 and installation costs…
A: Formula: Asset value = Equipment purchase value + Freight charges + Installation costs
Q: David Ltd commences operations on 1 July 2020 On the same date, it purchases a machine at a cost of…
A: Concept of Taxes on Income Calculation of Taxable Income as per Tax Authority Calculation of…
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product. Exercise 8-4 (Algo) Straight-line depreclation LO P1 Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: / Choose Denominator: Depreciation expense Year 2 Depreciation Year end book value (Year 2)Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product. Exercise 8-5 (Algo) Units-of-production depreclatlon LO P1 Determine the machine's second-year depreciation using the units-of-production method. Units-of-production Depreciation Choose Numerator: Choose Denominator: Annual Depreciation Expense Depreciation expense per unit Year Annual Production (units) Depreciation Expense Year 2Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product. Exercise 8-6 (Algo) Double-declining-balance depreciation LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. Double-declining-balance Depreciation Annual Depreciation Expense Depreciation expense Choose Factor(%) Choose Factors: %3D %3D First year's depreciation Second year's depreciation %3D
- Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $44,200. The machine's useful life is estimated at 10 years, or 392,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 33,200 units of product. Exercise 8-6 (Algo) Double-declining-balance depreciation LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. First year's depreciation Second year's depreciation Double-declining-balance Depreciation Choose Factors: X Choose Factor(%) Annual Depreciation Expense = Depreciation expense =Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,200. The machine's useful life is estimated at 20 years, or 391,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,100 units of product. Exercise 8-6 (Algo) Double-declining-balance depreciation LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. First year's depreciation Second year's depreciation Double-declining-balance Depreciation Choose Factors: Choose Factor (%) = = = = Annual Depreciation Expense Depreciation expenseRamirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. Exercise 8-6 (Algo) Double-declining-balance depreciation LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. First year's depreciation Second year's depreciation Double-declining-balance Depreciation Choose Factors: Choose Factor (%) xx I = Annual Depreciation Expense Depreciation expense
- es Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. Exercise 8-6 Double-declining-balance depreciation LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. First year's depreciation Second year's depreciation Double-declining-balance Depreciation Choose Factors: Beginning book value $ Choose Factor(%) x Double the straight-line rate 47,500 x X X Annual Depreciation Expense = Depreciation expense 20% = $ 20% E 9,500 4k ces A machine costing $215,600 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life, It actually produces the following units: 121,800 in Year 1, 122,600 in Year 2, 120,600 in Year 3, 139,000 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Note: Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine…10. ABC Company purchased a crane that cost $ 500,000. The crane estimated residual value after the useful life is $50,000. The estimated total hours of usage during the useful life are 30,000 hours. Determine the depreciation expense of the first year if the machine was used for 4,000 hours (use the unit of production method)
- Required information Skip to question [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $45,900. The machine's useful life is estimated at 10 years, or 399,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,900 units of product.Required information Skip to question [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 34,100 units of product. Determine the machine’s second-year depreciation using the double-declining-balance method.Required information Skip to question [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,100. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 34,100 units of product. Determine the machine’s second-year depreciation using the units-of-production method.