User Account

All Pages

How do prepare journal entries for equipment at december

Assignment Help Financial Accounting
Reference no: EM132750869

Dolphin Company uses special strapping equipment in its packaging\ business. The equipment was purchased in January 20X3 for $8,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 20X4, new technology was introduced that would accelerate the obsolescence of Dolphin's equipment. Dolphin's controller estimates that expected future net cash flows on the equipment will be $5,000,000 and that the fair value of the equipment is $4,400,000. Dolphin intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Dolphin uses straight-line depreciation.

Instructions

Problem (a) What is the carrying value of the asset?

Problem (b) Prepare the journal entry (if any) to record the impairment at December 31, 20X4.

Problem (c) Prepare journal entries for the equipment at December 31, 20X5. The fair value of the equipment at December 31, 20X5, is estimated to be $4,600,000.

Reference no: EM132750869

Questions Cloud

What cost avoidance and reduction would report : What cost avoidance and reduction would you report if you were able to switch to different items with the same functionality and reduce the proposed 5%
Business plans guide business decisions and actions : Business plans guide business decisions and actions. Have you been involved in a business planning process?
What cost avoidance would report : If you would have spent USD 1 million with them before the price increase, what cost avoidance would you report? What cost reduction would you report?
Are statistics stating the effectiveness of the act : Do you believe this act has helped eliminate cases of dishonesty amongst accounting professionals? Do you see possible amendment needed?
How do prepare journal entries for equipment at december : How do Prepare journal entries for the equipment at December 31, 20X5. The fair value of the equipment at December 31, 20X5, is estimated to be $4,600,000.
Find the intrinsic value of xyz stock : If the interest rate is 20% during the high-growth rate period and 10% during the stable-growth rate period, find the intrinsic value of XYZ stock.
Compute the hhi for the industry : Compute the HHI for this industry. Make sure to round your answers to the nearest 1000th decimal point. You consider an industry with 50 small firms
Ethical implication of a hands-off system : Explain ONE (1) ethical implication of a hands-off system that provides no government intervention to those in economic need.
How may the marketing concept be explained : How may the marketing concept be explained? Is it applicable to an engineering firm?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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