Homework Help Question & Answers

Note: Answer to this question is available on Chegg, I want the different answer. (It seems to be incorrect / and expert has post image of the answer (handwritten) in which many things are not clear)...

Note: Answer to this question is available on Chegg, I want the different answer. (It seems to be incorrect / and expert has post image of the answer (handwritten) in which many things are not clear)

Question

Property, plant and equipment

Storm Ltd acquired an item of equipment on 1 July 2016 at a cost of $800,000. On 30 June 2017, Storm’s directors decide to continue using the cost model for equipment. They elect to depreciate the equipment acquired on 1 July 2016 using the straight-line method, over its useful life of five years. The estimated residual value is $40,000.

The remaining useful life is revised on 1 July 2018 – estimated to be six years from 1 July 2018. The estimated residual value is also revised on this date – to $50,000.

The item of equipment is sold on 31 December 2019 for $500,000.

Required:

Prepare journal entries to account for all transactions that took place during the period 1 July 2016 to 31 December 2019, including entries for the acquisition of the equipment, depreciation for each year, and its disposal. Show all relevant dates, narrations and workings.

0 0
Next > < Previous
ReportAnswer #1

pment 200 Dpesiaien choagyedy Cseios Depreciation Choi reciationf eCi tpm Bo De 31-12 er sl12 leeTa imee 1:12 2019 125522 6

Know the answer?
Add Answer of:
Note: Answer to this question is available on Chegg, I want the different answer. (It seems to be incorrect / and expert has post image of the answer (handwritten) in which many things are not clear)...
Your Answer: Your Name: What's your source?
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
  • Bill’s Shirt Corp. paid $190,000 for machinery on July 1, 2018. The equipment has an estimated...

    Bill’s Shirt Corp. paid $190,000 for machinery on July 1, 2018. The equipment has an estimated useful life of 5 years and a residual value of $10,000. Using the straight-line method: Prepare the journal entry to record depreciation for 2018. (Remember to consider the company purchased the asset on July 1st.)      Prepare the journal entry to record depreciation for 2019. What amount would appear on the 2018 financial statements regarding: Depreciate Expense                                                       $___________ Accumulated Depreciation                                            $___________   What amount would...

  • PLEASE POST STEPS AND DO NOT USE PREVIOUS ANSWERS ON CHEGG THEY ARE INCORRECT! Problem 4....

    PLEASE POST STEPS AND DO NOT USE PREVIOUS ANSWERS ON CHEGG THEY ARE INCORRECT! Problem 4. On January 1, 2019. Erk, the lessee, and Betty, the lessor, signed a noncancelable lease agreement for Betty's equipment with a carrying amount of $75,000. The lease term is seven years with rental payments of $10,000 at the beginning of each year. Erk's incremental borrowing rate is 9%. The equipment is expected to have a residual value of $15,000 at the end of the...

  • On July 1, 2016, Steelman Company acquired a new equipment for $150,000 and estimated it would have a useful life of 10...

    On July 1, 2016, Steelman Company acquired a new equipment for $150,000 and estimated it would have a useful life of 10 years and residual value of $8,900. At the beginning of 2019, the company decided that the equipment would be used for nine more years (including all of 2019), and at the end of this time its residual value would be only $1,325. On November 1, 2020, the equipment was sold for $85,000. The company uses the straight-line method...

  • On July 1, 2016, Steelman Company acquired a new equipment for $157,000 and estimated it would...

    On July 1, 2016, Steelman Company acquired a new equipment for $157,000 and estimated it would have a useful life of 10 years and residual value of $7,500. At the beginning of 2019, the company decided that the equipment would be used for nine more years (including all of 2019), and at the end of this time its residual value would be only $825. On November 1, 2020, the equipment was sold for $82,000. The company uses the straight-line method...

  • 12-68 Petty Corporation has been depreciating equipment over a 10-year life on which costs $24,000, was...

    12-68 Petty Corporation has been depreciating equipment over a 10-year life on which costs $24,000, was purchased on January 1, 2016. The equi $6,000. On the basis of experience since acquisition, management has decided to a total life of 14 years instead of 10, with no change in the estimated residual al tive on January 1, 2020. The annual financial statements are prepared on a c presented). 2019 income and 2020 income before depreciation for 2019 and 2020 wer respectively....

  • Q3/ Please answer only Part E I have answers for all parts I need only answer for part E On December 31, 2018, the compa...

    Q3/ Please answer only Part E I have answers for all parts I need only answer for part E On December 31, 2018, the company sold some equipment for a loss of $2,820. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $55,960 and $15,256, respectively. Based on this information, what were the proceeds received when this equipment was sold? Cash proceeds from sale $ On January 1, 2016, Cullumber Corporation acquired equipment costing...

  • Question 6 Crane Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a December 31...

    Question 6 Crane Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a December 31 year end. It purchased equipment on January 1, 2017, for $184,200. The equipment had an estimated useful life of five years and a residual value of $20,460. On December 31, 2018, the company tests for impairment and determines that the equipment's recoverable amount is $94,100. (a) x Your answer is incorrect. Try again. Assuming annual depreciation has already been recorded at December 31, calculate...

  • The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained...

    The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained the following: Property, plant, and equipment: Land $ 118,000 Building $ 798,000 Less: Accumulated depreciation (190,000 ) 608,000 Equipment 174,450 Less: Accumulated depreciation ? ? Total property, plant, and equipment ? The land and building were purchased at the beginning of 2016. Straight-line depreciation is used and a residual value of $38,000 for the building is anticipated. The equipment is comprised of the following...

  • The property, plant, and equipment section of the Jasper Company's December 31, 2020, balance sheet contained...

    The property, plant, and equipment section of the Jasper Company's December 31, 2020, balance sheet contained the following: Property, plant, and equipment: Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total property, plant, and equipment $ 752,000 (235,000 179, 250 $127,000 517,000 The land and building were purchased at the beginning of 2016. Straight-line depreciation is used and a residual value of $47,000 for the building is anticipated. The equipment is comprised of the following three machines: Life (in...

  • I don't have much to add, just that I want to know how to answer the...

    I don't have much to add, just that I want to know how to answer the different depreciation methods used on requirement 2 of the question. I don't have clarification as I only depreciate according to the instructions given in the problem however I did clarify needing the answers for requirement 2 of the problem. Clarification is such a broad term as there are many things I could clarify. The information is given in the problem. Could you expound on...

Free Homework 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.
Share Your Knowledge

Post an Article
Post an Answer
Post a Question with Answer

Self-promotion: Authors have the chance of a link back to their own personal blogs or social media profile pages.