User Account

All Pages

Problem - computing and revising depreciation

Assignment Help Accounting Basics
Reference no: EM131796245

Problem - Computing and revising depreciation; revenue and capital expenditures

Maxil Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.

2010

Jan. 1 Paid $278,000 cash plus $11,120 in sales tax and $1,600 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $27,800 salvage value. Loader costs are recorded in the Equipment account.

Jan. 3 Paid $4,000 to enclose the cab and install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader  by another $1,200.

Dec. 31 Recorded annual straight-line depreciation on the loader.

2011

Jan. 1 Paid $4,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years.

Feb. 17 Paid $1,100 to repair the loader after the operator backs it into a tree.

Dec. 31 Recorded annual straight-line depreciation on the loader.

Required: Prepare journal entries to record these transactions and events.

Reference no: EM131796245

Questions Cloud

How much durant afford to spend on variable cost per unit : How much can Durant afford to spend on variable cost per unit if production and sales equal 50,000 phones?
Indicators and the inclusion-exclusion formula : Indicators and the inclusion-exclusion formula. Let IA be the indicator of A. Show the following:
Compute websters taxable income : the maximum the tax law allows, as well as taking the 50% bonus depreciation. Compute Webster's 2016 taxable income and income tax liability
Provide a brief overview of the study you would design : Compare and contrast the characteristics of non-experimental (descriptive and correlational) and experimental research designs.
Problem - computing and revising depreciation : Problem - Computing and revising depreciation; revenue and capital expenditures. Dec. 31 Recorded annual straight-line depreciation on the loader
Identify current accounting issues post-sox : Explain the role of the Sarbanes-Oxley Act in today's accounting environment, and identify current accounting issues Post-SOX.
Number of non-overlapping success : Let Rn be the total number of non-overlapping success runs in n trials, counting runs of any length between 1 and n. Find E(Rn) by using the result of b).
Discuss overall tax burden to himself and barton products : Should Mike increase his salary by $50,000.00 to reduce the overall tax burden to himself and Barton Products
Number of-days in month picked at random : Let X be the number of-days in month picked at random from the 12 months of a year (not a leap year).

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a direct labor budget

Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.

  On january 1 2008 newco issued 800000 of 5 5-year bonds at

on january 1 2008 newco issued 800000 of 5 5-year bonds at 93. interest is paid annually on december 31st and the

  Products kappa and sigma are joint products the joint

products kappa and sigma are joint products. the joint production cost of the products is 800. kappa has a market value

  Charles jackson the accounting manager at big als has just

charles jackson the accounting manager at big als has just returned from a conference on activity-based costing in

  Patton company purchased 400000 of 10 bonds of scott co on

patton company purchased 400000 of 10 bonds of scott co. on january 1 2011 paying 376100. the bonds mature january 1

  Adjustment made to cost of goods sold

At December 31, balances in Overhead are as follows: Lott Company-debit $1,500, Perez Company-credit $900. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold.

  What is its bond equivalent yield

a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bill =$ 9900.33 b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermedi..

  Determining the package of benefits and services

Credit card companies typically charge an annual fee to each credit cardholder for a package of benefits and services.

  Determine the total interest expense

Saverin Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin Inc. issued $21,000,000 of 10-year, 13% bonds at a market (effective).

  Which transactions will increase a shareholders ownership

ABC Corporation issued a 5% stock dividend that involved issuing 10,000 shares of $1 par value common stock when the market value of the stock was $25 per share.

  During 2011 company incurred the following direct labor

during 2011 company incurred the following direct labor costs january 15000 and february 30000. wnc uses a

  Keeper statement of cash flows

Prepare Keeper's statement of cash flows for the year 2014 using the indirect method.

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