Journalize the entry to record the sale

Assignment Help Accounting Basics
Reference no: EM132752973

Problem - Equipment was acquired at the beginning of the year at a cost of $600,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 16 years and an estimated residual value of $60,000.

Required -

a. What was the depreciation for the first year?

b. Assuming that the equipment was sold at the end of the second year for $480,000, determine the gain or loss on the sale of the equipment.

c. Journalize the entry to record the sale.

Reference no: EM132752973

Questions Cloud

Earning doctoral degree means : Earning a doctoral degree means you are an expert or a "near-expert" in a domain. In which domain do you have most academic expertise?
Record the acquisition of patent : Problem - On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. Record the acquisition of patent
What tools do you currently use for time management : What tools do you currently use for time management? What tools do you think will be beneficial in the future?
What circumstances the option will be exercised : What circumstances the option will be exercised. What does this trading strategy called? What are risks associated with this trading strategy for the Bank?
Journalize the entry to record the sale : Equipment was acquired at the beginning of the year at a cost of $600,000. What was the depreciation for the first year? Journalize the entry to record the sale
Issues of sex and gender in society today : Identify an issue that is facing our society today that is in some way related to sex and/or gender and has opposing sides.
Calculate the approximate cost of giving up cash discount : If the firm can obtain short-term funds from its commercial bank at 12% interest, which if any, of the suppliers' cash discounts should the firm give up?
Journalize the entries for the transmission and GPS system : In addition, Garcia paid $450 to install a GPS system in its van. Journalize the entries for the transmission and GPS system
What is the required return for stock : What is the required return for stock if the market return is 8%, the risk free rate is 1% and the beta for the stock is 1.2? The response must be typed.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What kinds of information would you like to have

What kinds of information would you like to have before you invest in a particular common stock or mutual fund? From what sources can you get that information?

  What amount of cash will lean accumulate in two years

What amount of cash will Lean accumulate in two years? On January 1 of the current year, Lean Co. made an investment of $10,000.

  Prepare the companys entries to record installment sales

Prepare the company's entries to record installment sales, cash collected, cost of installment sales, deferral of gross profit, and gross profit recognized, using the installment-sales method.

  Discuss the applications of the agents

Intelligent agents are being used in many applications. Discuss the applications of these agents in the e-commerce environment.

  What is a favorable variance and unfavorable variance

What is a favorable variance and what is an unfavorable variance? How do you calculate them? Is a favorable variance always a bad thing

  Explain the differences in creating budgets for the

explain the differences in creating budgets for the following entities manufacturing non-manufacturing serviced based

  Assignment - Project-Analysis, Sales Promotions

Assignment - Project-Analysis, Sales Promotions. Contribution margin for Gliders under each assumptions: actual sales volume at budgeted selling prices

  Measure estimated overhead cost expected activity

Measure Estimated Overhead Cost Expected Activity

  Determine the conversion cost per equivalent unit

During May Fedora charged production with $300,000 of material and $710,000 of conversion, Determine the conversion cost per equivalent unit

  Compute budgeted sales for the next year

Royal Phillips Electronics of the Netherlands reports sales of €23,200 million for a recent year. Assume that the company expects sales growth of 3 percent.

  Evaluate the factors that help to determine that market

evaluate the factors that help to determine that market value of stock. consider the factors that are most relevant to

  What is the compensation expense Kinshasa recorded

The Black-Scholes option pricing model determined total compensation expense to be $776263. What is the compensation expense Kinshasa recorded

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