ACCT291T PRINCIPLES OF ACCOUNTING WEEK 5 APPLY

Get ACCT291T PRINCIPLES OF ACCOUNTING WEEK 5 APPLY answers for $20. 100% correct answers from our expert tutors. Live-Chat with us or email [email protected] to get the answers or more assistance.

Rizio Co. purchases a machine for $13,300, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $266 discount. Transportation costs of $301 were paid by Rizio. The machine required mounting and power connections costing $919. Another $434 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $220 worth of repairs were made.
  
Complete the below table to calculate the cost recorded for this machine.
  



Oki Company pays $296,150 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment.
 

  1. Paid $22,600 cash for a new component that increased the equipment’s productivity.
  2. Paid $5,650 cash for minor repairs necessary to keep the equipment working well.
  3. Paid $15,550 cash for significant repairs to increase the useful life of the equipment from four to seven years.

Journal entry worksheet

  • Record the betterment cost of $22,600 paid in cash.

Record the betterment cost of $22,600 paid in cash.

Diaz Company owns a machine that cost $126,300 and has accumulated depreciation of $94,100. Prepare the entry to record the disposal of the machine on January 1 in each separate situation.
 

  1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return.
  2. Diaz sold the machine for $16,600 cash.
  3. Diaz sold the machine for $32,200 cash.
  4. Diaz sold the machine for $42,000 cash.

Problem 10-2A Depreciation methods LO P1

A machine costing $208,600 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 479,000 units of product during its life. It actually produces the following units: 121,900 in Year 1, 123,300 in Year 2, 121,300 in Year 3, 122,500 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.)
 
Required:
 
Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.)

ACCT291T PRINCIPLES OF ACCOUNTING WEEK 5 APPLY

Get ACCT291T PRINCIPLES OF ACCOUNTING WEEK 5 APPLY answers for $20. 100% correct answers from our expert tutors. Live-Chat with us or email [email protected] to get the answers or more assistance.