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Monica [59]
3 years ago
7

For each separate case, record an adjusting entry (if necessary). Barga Company purchases $32,000 of equipment on January 1. The

equipment is expected to last five years and be worth $4,400 at the end of that time. Welch Company purchases $11,200 of land on January 1. The land is expected to last forever.
Business
1 answer:
scoundrel [369]3 years ago
8 0

Answer:

<u>Equipment:</u>

                                                  Dr.       Cr.

Depreciation Expense          $5,520

Accumulated Depreciation                $5,520

<u>Land:</u>

Land never depreciates, so there is no adjusting entry for the Land purchased on year end.

Explanation:

Year end is not given in the data so, it is assumed the December 31 is the end of the year

Equipment

Depreciation  for the year = ( Purchase price - Residual value ) / useful life

Depreciation  for the year = ( $32,000 - $4,400 ) / 5 years

Depreciation  for the year = $5,520

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3 years ago
What is FAFSA? Who is eligible?
marishachu [46]
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6 0
3 years ago
In 2010, Norbert Incorporated bought a new tooling machine for $45,000. Norbert estimated that the machine had a useful life of
Norma-Jean [14]

Answer:

Norbert should record at 2020 depreciation expense of $2,700 for the machine

Explanation:

The depreciable base can be calculated as follows;

depreciable base=acquisition cost-salvage value

where;

acquisition cost=$45,000

salvage value=$0

replacing;

depreciable base=45,000-0=$45,000

Annual depreciation expense=depreciable base/useful life

annual depreciation expense=45,000/15=$3,000

accumulated depreciation after 10 years=3,000×10=$30,000

New net book value=acquisition cost-accumulated depreciation+overhaul cost

New machine value=(45,000-30,000+12,000)=$27,000

New depreciation base=new machine value-salvage value

where;

new machine value=$27,000

salvage value=$0

replacing;

New depreciation base=27,000-0=$27,000

New Annual depreciation expense=new depreciation base/useful life

where;

new depreciation base=$27,000

useful life=5+5=10 years

replacing;

New Annual depreciation expense=27,000/10=$2,700

Norbert should record at 2020 depreciation expense of $2,700 for the machine

3 0
3 years ago
Marlena acquired the following new assets during 2017:
Mila [183]

Answer:

(A) Half-year and (D) Half-year

Explanation:

MACRS stands for Modified Accelerated Cost Recovery System and is the most commonly-used tax depreciation method .Without getting into too much detail, MACRS is accelerated depreciation that allows for a larger deduction while the asset is still new. By comparison, straight-line depreciation gives you the same deduction year after year over the asset's useful life. MACRS cannot be used for intangible property, nor can it be used to depreciate. MACRS convention determines the number of months for which you can claim depreciation during a partial year, either when you first placed the asset in service or when you disposed of it. The mid-month convention only applies to residential rental property, nonresidential real property, and railroad grading or tunnel bore. It simply means that you get a half month's worth of depreciation no matter when that asset was placed into (or taken from) service during that month, whether that was at the beginning, middle, or end of the month.  The half-year convention works the same way but instead of the month it goes by the year. In other words, you'll get 6 months' depreciation if the asset was placed into service or disposed of during the year, no matter if it was in January or December.

5 0
3 years ago
The following information is known for a buyer of cosmetics: Planned sales for the month $42,000 Planned EOM stock $60,000 Plann
stich3 [128]

Answer:

$25,200

Explanation:

Given that,

Planned sales for the month =  $42,000

Planned EOM stock = $60,000

Planned reductions = $4,800

BOM inventory = $72,000

Merchandise commitments for delivery = $9,600

open-to-buy at retail:

= Planned sales for the month + Planned End of Month Inventory - BOM inventory - Planned reductions

= $42,000 + $60,000 -  $72,000 - $4,800

= $25,200

4 0
3 years ago
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