Reference no: EM132462957
Problem - Super Cleaner purchased an automatic dry cleaning machine for $104,000 on January 1, 2017. The estimated useful life of the cleaning machine was 5 years, with an estimated residual value of $4,000.
Required -
a. Compute the depreciation expense of this dry cleaning machine for Years 2017 and 2018 under each of the methods listed below:
(i) Straight-line
(ii) 150% declining-balance
b. In Year 2018, Super Cleaner bought a new dry cleaning machine with the following information:
(i) The list price of the machine was $285,000.
(ii) Freight charges for delivery of the machine totalled $1,251.
(iii) Installation costs related to the machine amounted to $6,492.
(iv) During installation, one of the machine parts was accidentally damaged by a staff. It cost the company $825 to repair this damage.
Compute the total costs debited to the Machinery Account.
c. On January 1, 2016, Super Cleaner purchased a truck costing $200,000, with an estimated salvage value of $20,000. The estimated useful life of the truck was 5 years. The truck depreciated by using 200% declining-balance method. The Company sold the truck on December 31, 2017 for $60,000. Prepare the general journal entries for the sale of the truck. Explanations for each journal entry are NOT required.
d. State two reasons why a business depreciates its noncurrent assets.
|
Compute the unrealized gains or losses
: On May 20, 2020, Pronghorn sold 3,200 shares of Sanchez Company's common stock at a market price of $35. Compute the unrealized gains or losses
|
|
What is meant by the resource conservation
: What is meant by the Resource Conservation and Recovery Act‘s (RCRA) commitment to "cradle-to-grave" management of hazardous waste.
|
|
Discuss the origins of the problem locally
: Explain what kinds of efforts have been undertaken to address the problem and how effective these actions have been. Are/were the actions taken equitable?
|
|
Explain simply rock cycle
: Explain simply the term Rock cycle,Hydrological cycle , Nitrogen cycle , Carbon cycle ,Sulfur cycle provide examples for each of them
|
|
Prepare the general journal entries for the sale of truck
: On January 1, 2016, Super Cleaner purchased a truck costing $200,000, Prepare the general journal entries for the sale of the truck
|
|
Describe some ways that emergency response guidebook
: Describe some ways that the Emergency Response Guidebook is used when responding to incidents involved the release of hazardous materials
|
|
What do see as the cause for plastic pollution
: What do you see as the cause for plastic pollution? What specifically are the effects of plastic pollution on these resources? discuss in detail
|
|
Discuss the four characteristics of a hazardous waste
: Discuss the four characteristics of a hazardous waste, of which ignitability is one; the four lists of hazardous waste, of which one is the P list
|
|
Calculate the Cost of Goods Sold and Ending Inventory
: Calculate the Cost of Goods Sold and Ending Inventory as of December 31, 2018 using First-In-First-Out (FIFO) method
|