HomeworkLib
Question

Suppose on December 31, Hipzone Inc. needs to record depreciation on a piece of office equipment....

Suppose on December 31, Hipzone Inc. needs to record depreciation on a piece of office equipment. The equipment was purchased on 1/1/2010 for $2,000, was expected to last 10 years at the time of purchase, and had an expected salvage value of $200. No depreciation has been recorded on the equipment for 2013. Make ALL of the entries required by this transaction.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Note :Since no mention is there, it is assumed to be straight line method of depreciation

Depreciation expense = [2000 -200] / 10 = 180

Account title Debit Credit
Income summary 180
Depreciation expense -equipment 180
Depreciation expense 180
Accumulated Depreciation - equipment 180
0 0
Add a comment
Know the answer?
Add Answer to:
Suppose on December 31, Hipzone Inc. needs to record depreciation on a piece of office equipment....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • show all work done 1. On December 1, 2018, the company purchased a piece of equipment...

    show all work done 1. On December 1, 2018, the company purchased a piece of equipment costing $28,000. paying $4,000 and financing the remainder. The equipment had an expected life of 5 years and a salvage value of $4,000. Interest on the note was at 6% and both principal and interest are due on Feb 28, 2019. Prepare the journal entry to reflect the purchase only. 2./3. What journal entries are required at the end of December, 2018 with regard...

  • Ruger Manufacturing sells office equipment on September 30, 2013, for $8,250 cash. The office equipment was...

    Ruger Manufacturing sells office equipment on September 30, 2013, for $8,250 cash. The office equipment was purchased on January 5, 2009, at a cost of $72,500, and had an estimated useful life of five years and an estimated residual value of $2,500. Adjusting journal entries are made annually at the company’s year-end, December 31 and Ruger uses straight-line depreciation. Prepare journal entries to: a) update depreciation to September 30, 2013 b) record the sale of the equipment, and c) record...

  • Q.3 Prepare the journal entries to record the following transactions for Eklund Company which has a...

    Q.3 Prepare the journal entries to record the following transactions for Eklund Company which has a calendar year end and uses the straight-line method of depreciation. a)On September 30, 2011, the company exchanged old delivery equipment and $24,000 for new delivery equipment. The old delivery equipment was purchased on January 1, 2009, for $84,000 and was estimated to have a $12,000 salvage value at the end of its 5-year life. Depreciation on the delivery equipment has been recorded through December...

  • Suppose that on January 1 Lambert Travel Company bad cash of $90,000 for equipment that is...

    Suppose that on January 1 Lambert Travel Company bad cash of $90,000 for equipment that is expected to remain set for five years. At the end of five years, the equipments value is expected to be 200 Read the rements 1. Make journal entries to record purchase of the equipment on January 1 and (b) anual depreciation on December 31. Include date and explanations, and use the following courts Equipment Accumulated Depreciation Equipment and Depreciation Equement ta Record the purchase...

  • Prepare the journal entry to record the following transaction in 2017 of ABC Company: September 30:...

    Prepare the journal entry to record the following transaction in 2017 of ABC Company: September 30: Equipment with a 4-year useful life was purchased on January 1, 2011, at $16,000 and was sold for $5,000. This equipment had been depreciated by the straight-line method (salvage value $4,000). Depreciation expense was last recorded on December 31, 2016.

  • Record depreciation on computers. Record depreciation on office furniture. Record the adjusting entry related to salaries....

    Record depreciation on computers. Record depreciation on office furniture. Record the adjusting entry related to salaries. Record the adjusting entry related to insurance. Record the adjusting entry related to office supplies. Record the adjusting entry related to utilities. 1,170 Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before adjusting entries are recorded, and the right column is prepared after adjusting entries. The company records cash receipts and payments...

  • 1. A piece of office equipment is purchased for $110,000 and has an estimated salvage value...

    1. A piece of office equipment is purchased for $110,000 and has an estimated salvage value of $10,000 at the end of the recovery period. Using excel, prepare a depreciation schedule for the piece of equipment using ONLY the straight line method with a recovery period of _____ years. For tax purposes, the IRS has stated this specific piece of equipment has a standard recovery period of how many years? (Fill in the blank). 2. Using excel, prepare a depreciation...

  • Compute revised depreciation and record entries U. Tilpailut City to Ches) Lulu Depreciation on the building...

    Compute revised depreciation and record entries U. Tilpailut City to Ches) Lulu Depreciation on the building in 2022. EO SIILO 2). AP On July 1, 2019, April Company purchased new equipment for $80,000. Its estimated useful life was 7 years with a $10,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Instructions a. Prepare the journal entry to record depreciation on December 31,...

  • Certossi Service Ltd. uses straight-line depreciation. The company's fiscal year end is December 31. The following...

    Certossi Service Ltd. uses straight-line depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during their first three years of operations: 2014   Jul   1   Purchased equipment for $32,000 cash, with shipping costs of $2,000.    Nov   3   Incurred ordinary repairs on the computer of $360.    Dec   31   Recorded 2014 depreciation on the basis of a four-year life and estimated residual value of $200. 2015   Dec   31   Recorded 2015 depreciation. 2016   Jan   1   Paid...

  • On January 1, 2019, Birdie purchased a used piece of equipment for $65,000. The next day,...

    On January 1, 2019, Birdie purchased a used piece of equipment for $65,000. The next day, it was repaired at a cost of $2,000 and mounted on a new platform that cost $2,400. It was estimated that the equipment would be used for four years and would then have a $9,000 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year’s depreciation was charged on December 31, 2019, through December 31,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT