Compute the depreciation for each of the five years

Assignment Help Accounting Basics
Reference no: EM13928160

Angle Co. purchased assembly equipment for $600,000 on January 1, 2013. Angle's financial condition immediately prior to the purchase is shown in the following horizontal statements model:

1933_264-B-A-I-A (3520).png

The equipment is expected to have a useful life of 200,000 machine hours and a salvage value of $20,000. Actual machine hour use was as follows:

2013 ......... 56,000
2014 ......... 61,000
2015 ......... 42,000
2016 ......... 36,000
2017 ......... 10,000

Required:

a. Compute the depreciation for each of the five years, assuming the use of units of production depreciation. 

b. Assume that Angle earns $210,000 of cash revenue during 2013. Record the purchase of the equipment and the recognition of the revenue and the depreciation expense for the first year in a financial statements model like the preceding one. 

c. Assume that Angle sold the equipment at the end of the fifth year for $21,500. Record the general journal entry for the sale.

Reference no: EM13928160

Questions Cloud

Risky portfolio with a standard deviation : Treasury bills are paying a 5% rate of return. A risk-averse investor with a risk aversion of A = 4 should invest entirely in a risky portfolio with a standard deviation of 22% only if the risky portfolio's expected return is at least ______.
Speculating on future exchange rate movements : Those against state that when an MNC borrows a foreign currency, they are essentially speculating on future exchange rate movements. Choose a side and defend your argument.
What is the current price of common stock : The last dividend paid by Klein Company was $1.00. Klein's growth rate is expected to be 20 percent for 5 years due a short-term exclusive agreement in a new market, then 6% forever. Klein's required rate of return on equity (ks) is 14 percent. What ..
Explain desalination by electro-dialysis process : Explain desalination by Electro-dialysis process. What are the advantages of this process.
Compute the depreciation for each of the five years : Assume that Angle sold the equipment at the end of the fifth year for $21,500. Record the general journal entry for the sale.
Implied by the two outstanding debt issues : Erna Corp. has 8 million shares of common stock outstanding. The current share price is $73, and the book value per share is $7. Erna Corp. also has two bond issues outstanding. Suppose the most recent dividend was $4.10 and the dividend growth rate ..
Experience developing web pages or web sites : A non-profit organization would like you to lead a Web site development project for them. The organization has Internet access that includes space on a Web server, but has no experience developing Web pages or Web sites.
Determining sample size estimating true population mean : When determining the sample size necessary for estimating the true population mean, which factor is not considered when sampling with replacement?
Article about relationships and love subjects : Does anyone want to write 900-1200 word article about relationships and love subjects?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Explain how the process compares to an acquisition

Explain how the process compares to an acquisition (or should we say Statutory Merger) when the acquired subsidiary is dissolved in the year of acquisition.

  Prepare separate journal entries

During the first year of coperations,Shapiro tool accumulated the following manufacturing costs: Raw materials puschased on account 8000 factory labor accrued 6000 incurred manufacturing overhead on account 4000 Prepare separate journal entries for e..

  Merchandising operation

Wilson Company makes all sales all sales of industrial bearings under terms of FOB shipping point. The company usually receives orders for sales approximately one week before shipping inventory to customers.

  Leonard purchased office equipment at a cost

On July 1, 2013, Leonard purchased office equipment at a cost of $12,350, which included $500 in sales tax and $200 in shipping charges.

  Prepare a government-wide statement of net assets

Prepare a government-wide statement of net assets.Be sure to show the transportation authority as business-type activity. If the township were to prepare fund statements,how would it report the housing authority's specialrevenue fund?

  Investments in current assets section

Fulton will report investments in its current assets section of :

  A current asset on emmet co. balance sheet.

A current asset on emmet co.'s balance sheet.

  Journalize the revenue transaction,and indicate

Journalize the revenue transaction, and indicate

  Prepare journal entries for common stock issued

Prepare journal entries for common stock issued above par value and draw up a Balance Sheet showing how these entries are reflected therein. Please explain in a word document and should be 1 page minimum.

  Discuss why it is necessary for accountants to assume that

discuss why it is necessary for accountants to assume that an economic entity will remain a going concern. if an entity

  How will any marital deduction be determined

Bernice dies, and under a will, passes real estate to her surviving husband. The real estate is subject to a mortgage. For estate tax purposes, how will any marital deduction be determined? Can Bernice's estate deduct the mortgage under 2053? Expl..

  Willand corporation has 46800 shares of 10 par value common

willand corporation has 46800 shares of 10 par value common stock outstanding. it declares a 10 stock dividend on

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