Equipment acquired on January 8 at a cost of $165,730 has an estimated useful life of 17 years, has an estimated residual value of $8,650, and is depreciated by the straight-line method.
A. What was the book value of the equipment at December 31 the end of the fourth year? B. Assuming that the equipment was sold on April 1 of the fifth year for $120,655, journalize the entries to record (1) depreciation for the three months until the sale date and (2) the sale of the equipment. Refer to the Chart of Accounts for exact wording of account titles Round your answer to the nearest whole dollar.
First Question
A. What was the book value of the equipment at December 31 the end of the fourth year?
Journal
B. Assuming that the equipment was sold on April 1 of the fifth year for $120,655, journalize the entries to record the following (Refer to the Chart of Accounts for exact wording of account titles. Round your answer to the nearest whole dollar.):
1. Depreciation for the three months until the sale date
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1
2
2. The sale of the equipment
PAGE 2
JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1
2
3
4
Equipment acquired on January 8 at a cost of $165,730 has an estimated useful life of 17 years, has an estimated residual value of $8,650, and is depreciated by the straight-line method.
| A. | What was the book value of the equipment at December 31 the end of the fourth year? |
| B. | Assuming that the equipment was sold on April 1 of the fifth year for $120,655, journalize the entries to record (1) depreciation for the three months until the sale date and (2) the sale of the equipment. Refer to the Chart of Accounts for exact wording of account titles Round your answer to the nearest whole dollar. |
First Question
A. What was the book value of the equipment at December 31 the end of the fourth year?
Journal
B. Assuming that the equipment was sold on April 1 of the fifth year for $120,655, journalize the entries to record the following (Refer to the Chart of Accounts for exact wording of account titles. Round your answer to the nearest whole dollar.):
1. Depreciation for the three months until the sale date
PAGE 1
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
| 1 | ||||||||
| 2 |
2. The sale of the equipment
PAGE 2
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
| 1 | ||||||||
| 2 | ||||||||
| 3 | ||||||||
| 4 |
Related questions
On October 1, Sebastian Company acquired new equipment with afair market value of $458,000. Sebastian received a trade-inallowance of $92,000 on the old equipment of a similar type andpaid cash of $366,000. The following information about the oldequipment is obtained from the account in the equipment ledger:Cost, $336,000; accumulated depreciation on December 31, the end ofthe preceding fiscal year, $220,000; annual depreciation,$20,000.
Required:
| Assuming the exchange hascommercial substance, journalize the entries to record: (a) thecurrent depreciation of the old equipment to the date of trade-inand (b) the exchange transaction on October 1. Refer to the Chartof Accounts for exact wording of account titles. |
Flush Mate Co. wholesales bathroom fixtures. During the currentfiscal year, Flush Mate Co. received the following notes:
| Date | FaceAmount | Term | Interest Rate | |
|---|---|---|---|---|
| 1. | Mar. 6 | $79,600 | 45days | 6% |
| 2. | Apr. 23 | 27,900 | 60days | 8% |
| 3. | July 20 | 41,500 | 120days | 7% |
| 4. | Sept. 6 | 51,500 | 90days | 8% |
| 5. | Nov. 29 | 30,800 | 60days | 7% |
| 6. | Dec. 30 | 69,300 | 30days | 5% |
| Required: | ||||||||||||||||||||||
| 1. | Determine for each note (a) thedue date and (b) the amount of interest due at maturity,identifying each note by number. (Note: Round eachinterest computation to the whole dollar.) | |||||||||||||||||||||
| 2. | Journalize the entry to recordthe dishonor of Note (3) on its due date. Refer to the Chart ofAccounts for exact wording of account titles. | |||||||||||||||||||||
| 3. | Journalize the adjusting entryto record the accrued interest on Notes (5) and (6) on December 31.Refer to the Chart of Accounts for exact wording of accounttitles. | |||||||||||||||||||||
| 4. | Journalize the entries to record the receipt of the amountsdue on Notes (5) and (6) in January. Refer to the Chart of Accountsfor exact wording of account titles. Starting Queston 1. Determine for each note (a) the due date and (b) the amountof interest due at maturity, identifying each note by number.(Note: Round each interest computation to thewhole dollar.)
|
Journal
Flush Mate Co. wholesales bathroom fixtures. During the currentfiscal year, Flush Mate Co. received the following notes:
| Date | FaceAmount | Term | Interest Rate | |
|---|---|---|---|---|
| 1. | Mar. 6 | $79,600 | 45days | 6% |
| 2. | Apr. 23 | 27,900 | 60days | 8% |
| 3. | July 20 | 41,500 | 120days | 7% |
| 4. | Sept. 6 | 51,500 | 90days | 8% |
| 5. | Nov. 29 | 30,800 | 60days | 7% |
| 6. | Dec. 30 | 69,300 | 30days | 5% |
| Required: | |
| 1. | Determine for each note (a) thedue date and (b) the amount of interest due at maturity,identifying each note by number. (Note: Round eachinterest computation to the whole dollar.) |
| 2. | Journalize the entry to recordthe dishonor of Note (3) on its due date. Refer to the Chart ofAccounts for exact wording of account titles. |
| 3. | Journalize the adjusting entryto record the accrued interest on Notes (5) and (6) on December 31.Refer to the Chart of Accounts for exact wording of accounttitles. |
| 4. | Journalize the entries torecord the receipt of the amounts due on Notes (5) and (6) inJanuary. Refer to the Chart of Accounts for exact wording ofaccount titles. |
X
Starting Question
1. Determine for each note (a) the due date and (b) the amountof interest due at maturity, identifying each note by number.(Note: Round each interest computation to thewhole dollar.)
| Note | DueDate | Interest Due at Maturity |
|---|---|---|
| 1. | $ | |
| 2. | $ | |
| 3. | $ | |
| 4. | $ | |
| 5. | $ | |
| 6. | $ |
X
Journal
2. Journalize the entry to record the dishonor of Note (3) onits due date. Refer to the Chart of Accounts for exact wording ofaccount titles.
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JOURNAL
| DATE | DESCRIPTION | POST.REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
1 | |||||
2 | |||||
3 |
3. Journalize the adjusting entry to record the accrued intereston Notes (5) and (6) on December 31. Refer to the Chart of Accountsfor exact wording of account titles.
PAGE 1
JOURNAL
| DATE | DESCRIPTION | POST.REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
1 | |||||
2 |
4. Journalize the entries to record the receipt of the amountsdue on Notes (5) and (6) in January. Refer to the Chart of Accountsfor exact wording of account titles.
PAGE 1
JOURNAL
| DATE | DESCRIPTION | POST.REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
1 | |||||
2 | |||||
3 | |||||
4 | |||||
5 | |||||
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