units in 2019; and 3,400 units in 2020. The sale of the machine resulted in a loss of $2,950. Required:7. Determine the book value of the truck as of December 31, 2020:A. $31,500B. $28,875C. S28, 500D. $30, 500E. 31.875 8. Determine depreciation expense for 2020 on the computer:A. S5, 400B. $13,680C. S12, 033D. $5,700E. S8, 889 9. The journal entry to recognize the sale of the computer on June 1, 2020 would include a:A. Credit to computer for $28, 500B. Credit to gain on sale of computer for S8, 500C. Debit to Accumulated Depreciation for $66, 500D. Debit to loss on sale of computer for $12,000E. Credit to gain on sale of computer for s 11.111 10. Determine the amount of cash received as a result of the sale of the machine on September 1, 2020:A. $35,000B. S40, 900C. $21, 550D. S27,450E. S42,600
units in 2019; and 3,400 units in 2020. The sale of the machine resulted in a loss of $2,950. Required:7. Determine the book value of the truck as of December 31, 2020:A. $31,500B. $28,875C. S28, 500D. $30, 500E. 31.875 8. Determine depreciation expense for 2020 on the computer:A. S5, 400B. $13,680C. S12, 033D. $5,700E. S8, 889 9. The journal entry to recognize the sale of the computer on June 1, 2020 would include a:A. Credit to computer for $28, 500B. Credit to gain on sale of computer for S8, 500C. Debit to Accumulated Depreciation for $66, 500D. Debit to loss on sale of computer for $12,000E. Credit to gain on sale of computer for s 11.111 10. Determine the amount of cash received as a result of the sale of the machine on September 1, 2020:A. $35,000B. S40, 900C. $21, 550D. S27,450E. S42,600
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 9P: During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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