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Posted: April 20th, 2022
Accounting (Depreciation)
Question Assignment description
Drawback 1
Pink
Brick Firm bought a front-end loader and tractor for $42,000 on April 1,
2011. The tractor has an estimated helpful lifetime of six years or 25,800 hours and
a residual worth of $2,000. Listed within the chart beneath is the variety of hours
the tractor and front-end loader have been used throughout 2011 by 2017.
Yr #
of hours used
2011 three,990
2012 four,270
2013 three,990
2014 four,150
2015 four,245
2016 four,075
2017 1,080
a)
Calculate depreciation utilizing the straight line methodology for 2011 by 2017.
b)
Calculate depreciation utilizing items of manufacturing methodology for 2011 by 2017.
c)
Calculate depreciation utilizing declining steadiness methodology for 2011 by 2017.
Drawback 2
Customized
Flags bought a stitching machine in January 2012 for $eight,000. Customized depreciated
the machine utilizing the straight line methodology with an estimated helpful lifetime of 9 years
and a residual worth of $800.
a)
Calculate depreciation utilizing the straight line methodology for 2012, 2013, and 2014.
b)
Decide e book worth for the stitching machine as of December 31, 2014.
c)
Document the journal entry for the sale of the stitching machine on April 1, 2015
for $5,800.
d)
Document the journal entry for the sale of the stitching machine on April 1, 2015
for $5,200.
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