Record the cost of new alarm system enhancements on january

Reference no: EM13900619

Dale's Winning Edge, Inc., purchased and installed an alarm system for its retail store on January 1, 1999, at a cost of $50,000. The alarm system was estimated to have a 10-year life with no residual value. On January 1, 2006, the alarm system was enhanced with wireless monitors.

The new monitors cost $40,000. In addition, the alarm system was estimated to have a remain- ing life of 10 years, with no residual value, on January 1, 2006. Dale's Winning Edge uses the straight-line depreciation method.

a. Record the cost of the new alarm system enhancements on January 1, 2006.

b. Determine the total depreciation expense reported in the income statement in 2006 from this transaction.

Reference no: EM13900619

Questions Cloud

Components of gross national product : What are the components of Gross National Product (GNP)? How does it understate aggregate production in Third World countries where substantial economic production may be consumed directly and thus not reach markets where it can be measured?

The following information is available to reconcile : The following information is available to reconcile Severino Co.'s book balance of cash with its bank statement cash balance as of December 31, 2013.

Determine the book value of the engine on december : Record the journal entry for the depreciation expense on the overhauled engine for the remainder of 2006. Determine the book value of the engine on December 31, 2006.

Explain fiscal stimulus programs adopted by many countries : The fiscal stimulus programs adopted by many countries in response to the financial crisis helped offset the decline in aggregate demand and reduce the size of the recession.

Record the cost of new alarm system enhancements on january : Record the cost of the new alarm system enhancements on January 1, 2006. Determine the total depreciation expense reported in the income statement in 2006 from this transaction.

Discuss the following statements : The Phillips curve implies that when unemployment is high, inflation is low, and vice versa. Therefore, we may ex- perience either high inflation or high unemployment, but we will never experience both together.

Record the cost of the new sprinkler system on january : Record the cost of the new sprinkler system on January 8, 2008. Record the annual depreciation expense adjusting entry for the warehouse on December 31, 2008, under the straight-line method.

What will the inflation rate be in years : Using the information in this chapter, label each of the fol- lowing statements true, false, or uncertain. Explain briefly. The original Phillips curve is the negative relation between unemployment and inflation that was first observed in the Un..

Hamara systems most recently reconciled its bank balance : hamara Systems most recently reconciled its bank balance on April 30 and reported two checks outstanding at that time, No. 1771 for $ 781 and No. 1780 for $ 1,425.90. The following information is available for its May 31, 2013, reconciliation.

User Account

All Pages