{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 9 HW - Student Name Ankita Shah Class Financial...

This preview shows pages 1–3. Sign up to view the full content.

Student Name: Ankita Shah Class: Financial Accounting Brief Exercise Problem # 9.2 Purchase price: \$12,000 Salvage (residual) Value: \$2,000 Estimated useful life: 5 years Depreciation method: Straight Line Depreciation exp. amount per yr: \$2,000 (Purchase price - Salvage value / Useful life) Accum. Depr. for 3 yrs: \$6,000 (\$2,000 x 3) Netbook value at the end of 3 yrs: \$6,000 (Purchase price - Accumulated depreciation) \$1,200 (Cash received for sale of asset - Net book value) Exercise Problem # 9.2 # Capital Expenditure a) X b) X c) X d) X e) X f) X Exercise Problem # 9.6 Purchase price: \$90,000 Residual Value: \$18,000 Intial estimated useful life: 12 years Revised est. useful life: 20 years Depreciation amount: \$72,000 (Purchase price - Residual value) Depreciation per year: \$6,000 (Depr. Amt / useful life) \$24,000 (Depr. Amt per yr x 4, 2004 to 2007) \$66,000 (Purchase price - Accum. Depr.) Revised Depreciation amt: \$48,000 (Purchase price - Residual value - Accum. Depr. as of Rev. Depr. Amt per year: \$3,000 (Rev. Depr amt / remaining useful life) A) Gain / Loss on asset: Revenue Expenditure Accumulated Depreciaiton as of December 31st, 2007: Net Book Value at December 31st, 2007:

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Journal Entries in chronological order 1 Purchase of the machinery Jan. 11, 2004 Machinery……………………………. . \$90,000 Cash…………………………………. . \$90,000 To record purchase of Machinery Dec. 31, 2004 Depreciaiton Expense…………………… \$6,000 Accumulated Depreciation - Machinery…. \$6,000 To record depreciation expense for 2004 Dec. 31, 2005 Depreciaiton Expense…………………… \$6,000 Accumulated Depreciation - Machinery…. \$6,000 To record depreciation expense for 2005 Dec. 31, 2006 Depreciaiton Expense…………………… \$6,000 Accumulated Depreciation - Machinery…. \$6,000 To record depreciation expense for 2006 Dec. 31, 2007 Depreciaiton Expense…………………… \$6,000 Accumulated Depreciation - Machinery…. \$6,000 To record depreciation expense for 2007 Dec. 31, 2008 Depreciaiton Expense…………………… \$3,000 Accumulated Depreciation - Machinery…. \$3,000 To record depr. exp. for 2008, change in useful life from 12 to 20 yrs
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 10

Chapter 9 HW - Student Name Ankita Shah Class Financial...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online