Calculate and prepare journal entry for depreciation expense

Assignment Help Accounting Basics
Reference no: EM132566879

Question - Johnson Company purchased factory equipment with an invoice price of $150,000. Other costs incurred were freight costs, $1,200; installation wiring and foundation, $2,100; material and labor costs in testing equipment, $700; oil lubricants and supplies to be used with equipment, $500; fire insurance policy covering equipment, $1,400. The equipment is estimated to have $5,000 salvage value at the end of its 10-year useful service life.

Required -

1) Compute the acquisition cost of the equipment. Clearly identify each element of cost

2) Using the double declining balance method: a) calculate and prepare the journal entry for depreciation expense for the second year.

Reference no: EM132566879

Questions Cloud

Who developed the taxonomy naming system still used today : Who developed the taxonomy naming system still used today?
Compute divisional operating income for the two divisions : Compute divisional operating income for the two divisions. Ignore taxes. (Enter your answers in thousands of dollars rounded to 1 decimal place.)
Prepare the journal entry to record the conversion of bond : The common stock had a market value of $9 per share on the date of conversion. Prepare the journal entry to record the conversion of the bond
Corynebacterium diphtheria disease from cdc : Epidemiology is the science that studies where and when diseases occur and how they are transmitted. Is corynebacterium diphtheria considered
Calculate and prepare journal entry for depreciation expense : Using the double declining balance method: a) calculate and prepare the journal entry for depreciation expense for the second year
Is corynebacterium diphtheria an emerging infectious disease : If yes what was the year of the most recent emergence? If no explain why it is not an emerging infection disease .
What is the roi for each year of the asset life : What is the ROI for each year of the asset's life if the division uses beginning-of-year asset balances and net book value for the computation?
How to determine what is the fixed overhead variance : How to What is the fixed overhead variance ?Total variable production costs - $450,000. Total fixed production overhead - $130,500
Determine the taxable income and income tax payable : A corporate tax rate of 30% applies. Determine the taxable income and income tax payable for the year to 30 June 2020

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd