Brambie Manufacturers Inc., a publicly listed company, has two machines that are accounted for under the revaluation model. Technology in Brambie’s industry is fast-changing, causing the fair value of each machine to change significantly approximately every two years. The following information is available:
| Machine #1 | Machine #2 | |||||
| Acquisition date | Jan. 2, 2014 | June 30, 2013 | ||||
| Original cost | $420,000 | $588,000 | ||||
| Original estimate of useful life | 8 years | 12 years | ||||
| Original estimate of residual value | –0– | –0– | ||||
| Pattern of depreciation | Straight-line | Straight-line | ||||
| Fair value at Dec. 31, 2015 | 295,000 | 479,500 | ||||
| Balance in Machinery account after proportionate method revaluation on Dec. 31, 2015 |
393,333 | 605,685 | ||||
| Balance in Accumulated Depreciation account after proportionate method revaluation on Dec. 31, 2015 |
98,333 | 126,185 | ||||
| Cumulative balance in (Revaluation Gain or Loss/ Revaluation Surplus (OCI) at Jan. 1, 2017 |
(20,000 | ) | 14,000 | |||
| Fair value at Dec. 31, 2017 | 243,000 | 300,500 |
Both machines were last revalued on December 31, 2015. Brambie has
a December 31 year end.
Prepare the journal entries required for 2017, using the asset adjustment method.
Homework Answers
| Estimate Sparrow’s ending inventory and cost of goods sold for the year using the | ||||
| retail inventory method and the Conventional application | ||||
| Cost | Retail | |||
| Beginning Inventory | $ 84,000.00 | $ 1,74,000.00 | ||
| Add : Purchases | $ 3,70,000.00 | $ 5,74,000.00 | ||
| Add : Freight in | $ 8,400.00 | |||
| Deduct : Purchase returns | $ (6,400.00) | $ (10,400.00) | ||
| Add : Net Mark ups | $ 15,400.00 | |||
| Deduct : Abnormal Spoilage | $ (4,467.00) | $ (7,400.00) | ||
| Goods available for sale | $ 4,51,533.00 | $ 7,45,600.00 | ||
| Cost / Retail (%) = 451533/745600 | 60.56% | |||
| Deduct : Net mark downs | $ (11,400.00) | |||
| Deduct : Normal Spoilage | $ (2,400.00) | |||
| Deduct : Net sales (534000-9400) | $ (5,24,600.00) | |||
| Deduct : Employee discounts | $ (3,400.00) | |||
| Ending Inventory at Retail (A) | $2,03,800.00 | |||
| Ending Inventory at cost = 60.56% * 203800 (B) | $ 1,23,421 | |||
| Cost of Goods sold (A-B) | $ 80,379 | |||
Add Answer to:
Brambie Manufacturers Inc., a publicly listed company, has two
machines that are accounted for under the...
A partial statement of financial position of Wildhorse Ltd. on December 31, 2019, showed the following...
A partial statement of financial position of Wildhorse Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2019): Buildings Less: accumulated depreciation Equipment Less: accumulated depreciation $326,000 126,000 $200,000 $125,000 45,000 80,000 Wildhorse uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Wildhorse applies IFRS and...
Tuur answer is partially correct. Culver Corporation purchased a delivery truck in early January 2016. The truck cos...
Tuur answer is partially correct. Culver Corporation purchased a delivery truck in early January 2016. The truck cost $93,600, and was to be depreciated over 8 years, assuming no residual valu Culver decided to account for this truck using the revaluation model, with the truck to be revalued every two years. The truck's fair value at the end of 2018 was $75,600. Prepare the journal entries to revalue the truck on December 31, 2018 assuming Culver uses the asset adjustment...
Brief Exercise 10-19 Skysong Assets Inc., a publicly listed company, has a building with an initial...
Brief Exercise 10-19 Skysong Assets Inc., a publicly listed company, has a building with an initial cost of $403,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $99,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $334,400. On January 5, 2021, Skysong sold the building for $329,400 cash. Prepare the journal entries to record the sale of the building after having used the cost model. (Credit...
In recent years, Sheridan Company has purchased three machines. Because of frequent employee turnover in the...
In recent years, Sheridan Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Useful Life (in years) Depreciation Method Machine Salvage Acquired Cost Value Jan. 1, 2015 $133,000 $45,000 July 1, 2016 86,500 10,500 Nov. 1, 2016 68,2008,200 8 Straight-line Declining-balance Units-of-activity For the declining-balance...
In recent years, Pharoah Company has purchased three machines. Because of frequent employee turnover in the...
In recent years, Pharoah Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Salvage Value Cost Useful Life (in years) Depreciation Method Straight-line Jan. 1, 2015 $135,500 July 1, 2016 81,500 Nov. 1, 2016 77,600 $35,500 10,200 7,600 5 Declining-balance Units-of-activity For the...
James Company purchased four identical machines on January 10, 2019, paying $6,090 for each. The useful...
James Company purchased four identical machines on January 10, 2019, paying $6,090 for each. The useful life of each machine is expected to be six years, with a salvage value of $690 each. The company uses the straight-line method of depreciation. Selected transactions involving the machines follow. The accounts for recording these transactions are also given. DATE TRANSACTIONS FOR 2019 Jan. 10 Paid $6,090, in cash, for each of four machines. Dec. 31 Recorded depreciation for the year on the...
Here are the accounts available: Accounts Payable Accounts Receivable Accumulated Depreciation - Buildings Accumulated Depreciation -...
Here are the accounts available:
Accounts Payable
Accounts Receivable
Accumulated Depreciation - Buildings
Accumulated Depreciation - Equipment
Accumulated Depreciation - Leasehold Improvements
Accumulated Depreciation - Machinery
Accumulated Depreciation - Vehicles
Advertising Expense
Asset Retirement Obligation
Buildings
Cash
Common Shares
Contributed Surplus
Contributed Surplus - Donated Capital
Cost of Goods Sold
Deferred Revenue - Government Grants
Depreciation Expense
Donation Revenue
Equipment
Finance Expense
Finance Revenue
Gain on Disposal of Building
Gain on Disposal of Equipment
Gain on Disposal of Machinery
Gain...
In recent years, Crane Company has purchased three machines. Because of frequent employee turnover in the...
In recent years, Crane Company has purchased three machines.
Because of frequent employee turnover in the accounting department,
a different accountant was in charge of selecting the depreciation
method for each machine, and various methods have been used.
Information concerning the machines is summarized in the table
below.
Machine
Acquired
Cost
Salvage
Value
Useful Life
(in years)
Depreciation
Method
1
Jan. 1, 2015
$130,500
$30,500
10
Straight-line
2
July 1, 2016
88,000
10,100
5
Declining-balance
3
Nov. 1, 2016
76,100...
Wayne operates a candy factory in Seremban. The machines in his factory are purchased overseas. On...
Wayne operates a candy factory in Seremban. The machines in his factory are purchased overseas. On 1 Jan 2015, he purchased a machine from Japan costing RM120,000. The machine was delivered to Malaysia on freight. The transportation cost of RM3,000 and freight insurance of RM1,200 was borne by Wayne. When the machine landed in Malaysia, Wayne paid custom duty of RM3,000. Wayne hired an engineer to install the machine within the factory. The engineer told Wayne that in the event...
In recent years, Crane Company has purchased three machines. Because of frequent employee turnover in the...
In recent years, Crane Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Cost Salvage Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2015 $126,000 $16,000 10 Straight-line 2 July 1, 2016 79,000 11,200 5 Declining-balance 3 Nov. 1, 2016 71,900...
A partial statement of financial position of Wildhorse Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2019): Buildings Less: accumulated depreciation Equipment Less: accumulated depreciation $326,000 126,000 $200,000 $125,000 45,000 80,000 Wildhorse uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Wildhorse applies IFRS and...
Tuur answer is partially correct. Culver Corporation purchased a delivery truck in early January 2016. The truck cost $93,600, and was to be depreciated over 8 years, assuming no residual valu Culver decided to account for this truck using the revaluation model, with the truck to be revalued every two years. The truck's fair value at the end of 2018 was $75,600. Prepare the journal entries to revalue the truck on December 31, 2018 assuming Culver uses the asset adjustment...
Brief Exercise 10-19 Skysong Assets Inc., a publicly listed company, has a building with an initial cost of $403,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $99,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $334,400. On January 5, 2021, Skysong sold the building for $329,400 cash. Prepare the journal entries to record the sale of the building after having used the cost model. (Credit...
In recent years, Sheridan Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Useful Life (in years) Depreciation Method Machine Salvage Acquired Cost Value Jan. 1, 2015 $133,000 $45,000 July 1, 2016 86,500 10,500 Nov. 1, 2016 68,2008,200 8 Straight-line Declining-balance Units-of-activity For the declining-balance...
In recent years, Pharoah Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine Acquired Salvage Value Cost Useful Life (in years) Depreciation Method Straight-line Jan. 1, 2015 $135,500 July 1, 2016 81,500 Nov. 1, 2016 77,600 $35,500 10,200 7,600 5 Declining-balance Units-of-activity For the...
Here are the accounts available:
Accounts Payable
Accounts Receivable
Accumulated Depreciation - Buildings
Accumulated Depreciation - Equipment
Accumulated Depreciation - Leasehold Improvements
Accumulated Depreciation - Machinery
Accumulated Depreciation - Vehicles
Advertising Expense
Asset Retirement Obligation
Buildings
Cash
Common Shares
Contributed Surplus
Contributed Surplus - Donated Capital
Cost of Goods Sold
Deferred Revenue - Government Grants
Depreciation Expense
Donation Revenue
Equipment
Finance Expense
Finance Revenue
Gain on Disposal of Building
Gain on Disposal of Equipment
Gain on Disposal of Machinery
Gain...
In recent years, Crane Company has purchased three machines.
Because of frequent employee turnover in the accounting department,
a different accountant was in charge of selecting the depreciation
method for each machine, and various methods have been used.
Information concerning the machines is summarized in the table
below.
Machine
Acquired
Cost
Salvage
Value
Useful Life
(in years)
Depreciation
Method
1
Jan. 1, 2015
$130,500
$30,500
10
Straight-line
2
July 1, 2016
88,000
10,100
5
Declining-balance
3
Nov. 1, 2016
76,100...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago