Solution-What was the cash paid and what was the

What was the cash paid and what was the depreciation expense

Reference no: EM131389369

"Plant Assets"

Shown below are the T-accounts relating to equipment that was purchased for cash by a company on the first day of the current year. The equipment was depreciated on a straight-line basis with an estimated useful life of 10 years and a salvage value of $100. Part of the equipment was sold on the last day of the current year for cash proceeds.

Cash EquipmentAccumulated Depreciation-Equipment
Jan.1 (a) Jan. 1 1,100 Dec. 31 100
Dec.31 450 Dec. 31 440 Dec 31 40 31 55

Depreciation ExpenseGain on Disposal of Plant Assets
Dec. 31 (b) Dec. 31 (c)

Instructions

Prepare the journal entries to record the following and derive the missing amounts:

(a) Purchase of equipment on January 1. What was the cash paid?

(b) Depreciation recorded on December 31. What was the depreciation expense?

Attachment:- Finance_Discuss.rar

Reference no: EM131389369

Questions Cloud

Demonstrate high degrees of brand loyalty : Identify at least three sports products to which consumers demonstrate high degrees of brand loyalty. Summarize these products and why you think loyalty is so high.

What is the result in given contention : Horn has not sued the partnership itself, nor does he claim that the partnership property is insufficient to satisfy its debts. What result? Explain.

Microsoft attempts to monopolize market in internet portals : Which of the following is a violation of the antitrust laws in the United States and why? (a) MIcrosoft monopolizes the market in PC operating system with a 92 percent market share; (b) Microsoft attempts to monopolize the market in Internet portals ..

Explain who is correct in given contention : Cutler argues that although Bowen owned the physical assets of the business, she, as a partner in the business, is entitled to one-half of the compensation that was paid for the business's goodwill and going-concern value. Who is correct? Explain.

What was the cash paid and what was the depreciation expense : Purchase of equipment on January 1. What was the cash paid? Depreciation recorded on December 31. What was the depreciation expense?

Make to the trying arrangement issues : What difference does it make to the trying arrangement issues if Internet Explorer is a functionally integrated component of Windows? What if it is more like a radio in an automobile than a steering-post interlock device?

Find the economic service life of this new vehicle : Suppose a company has a gasoline vehicle, but is considering purchasing a new hybrid vehicle that would cost $20,000, have operating costs of $1,200 in the first year, and have a salvage value of $8,000 at the end of the first year. Find the economic..

Is gauldin entitled to one half of value of two buildings : however, the two had no agreement regarding the distribution of the barn and the Cargill unit. Is Gauldin entitled to one-half of the value of the two buildings? Explain.

What rights if any does anita have against duncan : Several months later, Anita learned for the first time of the transaction between Duncan and James. What rights, if any, does Anita have against Duncan?

User Account

All Pages

What was the cash paid and what was the depreciation expense

Reference no: EM131389369

Reference no: EM131389369

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

Drew company is a retail company that specializes in

Journal form for sanford corp

Name three other sections from home depot 2009

Give two examples of fringe benefits

Compute amount of accumulated depreciation on each machine

Concept of straight-line depreciation

What is mikes recognized gain or loss

Primary products or services of the corporation

Which reporting makes moss look better

Appropriate journal entry to record the award

Internally generated intangible assets

Define and discuss cash equivalent and provide three example

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT