Could these be answered? Thanks
Could these be answered? Thanks
A company purchased a cash register on January 1 for $7,000. This register has a useful life of 5
years and a salvage value of $1,200. What would be the depreciation expense for
year of its useful life using the double-declining-balance method?
A company used straight-line depreciation for an item of equipment that cost $18,750, had a
salvage value of $5,000, and had a five-year useful life. After depreciating the asset for three
complete years, the salvage value was reduced to $2,100 and its total useful life was increased
from 5 years to 6 years. Determine the amount of depreciation to be charged against the
machine during each of the remaining years of its useful life:
Marble Company purchased a machine costing $127,000, terms 2/10, n/30. The machine was
shipped FOB shipping point and freight charges were $2,700. The machine requires special
mounting and wiring connections costing $10,700. When installing the machine, $2,000 in
damages occurred. Materials costing $2,200 are used in testing and adjusting the machine to
produce a satisfactory product. Compute the cost recorded for this machine assuming Marble
paid within the discount period.
Thomas Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $168,000.
The asset is expected to have a salvage value of $16,700 at the end of its five-year useful life. If
the asset is depreciated on the double-declining-balance method, the asset’s book value on
December 31, Year 3 will be
(Do not round intermediate calculations)
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Lomax Enterprises purchased a depreciable asset for $27,500 on March 1, Year 1. The asset
will be depreciated using the straight-line method over its four-year useful life. Assuming the
asset’s salvage value is $3,100, what will be the amount of accumulated depreciation on this
asset on December 31, Year 4? (Do not round intermediate calculations. Round your final
answer to two decimal places.)
During August, Arena Company sells $352,000 in product that has a one year warranty.
Experience shows that warranty expenses average about 5% of the selling price. The warranty
liability account has a balance of $11,400 before adjustment. Customers returned product for
warranty repairs during the month that used $8,000 in parts for repairs. The entry to record the
estimated warranty expense for the month is:
Debit Estimated Warranty Liability $17,600; credit Warranty Expense $17,600.
Debit Estimated Warranty Liability $8,000; credit Warranty Expense $8,000.
Debit Warranty Expense $17,600; credit Estimated Warranty Liability $17,600.
Debit Warranty Expense $6,200; credit Estimated Warranty Liability $6,200.
Debit Warranty Expense $14,200; credit Estimated Warranty Liability $14,200.
A company sells computers at a selling price of $1,750 each. Each computer has a 2 year
warranty that covers replacement of defective parts. It is estimated that 3% of all computers sold
will be returned under the warranty at an average cost of $149 each. During November, the
company sold 29,000 computers, and 390 computers were serviced under the warranty at a total
cost of $54,000. The balance in the Estimated Warranty Liability account at November 1 was
$28,500. What is the company’s warranty expense for the month of November?
A company had fixed interest expense of $4,500, its income before interest expense and any
income taxes is $17,000, and its net income is $7,400. The company’s times interest earned
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