Monthly depreciation is calculated as follows:
65,000 (Cost) – 5,000 (Salvage Value) ÷ 60 (5 years X 12 months per year) = 1,000 in depreciation per month.
a) Accumulated depreciation from 1/1/12 to 1/1/15 is 36,000 (12 months for 2012, 2013, & 2014).
Assuming that sale was a Cash sale, the journal entry would look like this:
1/1/15
Cash (DR) 31,000
Accumulated Depreciation (DR) 36,000
Equipment (CR) 65,000
Gain on Sale of Equipment (CR) 2,000
b) Accumulated depreciation from 1/1/12 to 5/1/15 is 40,000 (12 months for 2012, 2013, 2014, & 4 months for 2015).
Assuming that sale was a Cash sale, the journal entry would look like this:
5/1/15
Cash (DR) 31,000
Accumulated Depreciation (DR) 40,000
Equipment (CR) 65,000
Gain on Sale of Equipment (CR) 6,000
c) Accumulated depreciation from 1/1/12 to 1/1/15 is 36,000 (12 months for 2012, 2013, & 2014).
Assuming that sale was a Cash sale, the journal entry would look like this:
1/1/15
Cash (DR) 11,000
Accumulated Depreciation (DR) 36,000
Loss on Sale of Equipment (DR) 18,000
Equipment (CR) 65,000
d) Accumulated depreciation from 1/1/12 to 10/1/15 is 45,000 (12 months for 2012, 2013, 2014, & 9 months for 2015).
Assuming that sale was a Cash sale, the journal entry would look like this:
10/1/15
Cash (DR) 11,000
Accumulated Depreciation (DR) 45,000
Loss on Sale of Equipment (DR) 9,000
Equipment (CR) 65,000
Not my answers, but I hope this will help you. :)
Answer:
Hope this helps. Let me know if it doesn't and I'll try to help out. :)
Bart company charges a lower rate. It is lower by rate $ 0.5 per hour
<h3><u>Solution:</u></h3>
Given that Ace bike rentals rents bikes for $28 per day. Renters can keep the bike for 8 hours
Also given that Bart's bikes rents bikes for $30 per day. Renters can keep the bike for 10 hours
To find: company that charges lower rate
Let us find the hourly rate of Ace and Bart
<em><u>Hourly rate of Ace company:</u></em>
Rental price = $28
total time in a day 8 hours
So the hourly rate of Ace company is $ 3.5 per hour
<em><u>Hourly rate of Bart company:</u></em>
Rental price = $ 30
total time in a day 10 hours
So the hourly rate of Bart company is $ 3 per hour
<em><u>Comparing hourly rate of both companies</u></em>
Ace company is $ 3.5 per hour
Bart company is $ 3 per hour
Bart company < Ace company
3 < 3.5
Thus bart company charges a lower rate
<h3><em><u>How much lower?</u></em></h3>
hourly rate of Ace company - hourly rate of Bart company = 3.5 - 3 = 0.5
So, it is lower by rate $0.5 per hour
