Spiceland topic determine periodic depreciation using

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Spiceland - Chapter 11 #112 Topic: Determine periodic depreciation using both time-based and activity-based methods
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113. On September 30, 2013, Sternberg Company sold office equipment for $12,000. The equipment was purchased on March 31, 2010, for $24,000. The asset was being depreciated over a five-year life using the straight-line method, with depreciation based on months in service. No residual value was anticipated. Required: Prepare the journal entries to record 2013 depreciation and the sale of the equipment. AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #113 Topic: Determine periodic depreciation using both time-based and activity-based methods
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114. The table below contains data on depreciation for equipment. Required: Fill in the missing data in the table. AACSB: Analytic AICPA FN: Measurement Blooms: Analyze Difficulty: 3 Hard Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #114 Topic: Determine periodic depreciation using both time-based and activity-based methods
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115. The table below contains data on depreciation for machinery. Required: Fill in the missing data in the table. AACSB: Analytic AICPA FN: Measurement Blooms: Analyze Difficulty: 3 Hard Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #115 Topic: Determine periodic depreciation using both time-based and activity-based methods
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116. In 2013, the internal auditors of KJI Manufacturing discovered the following material errors made in prior years: 1. Equipment was purchased on June 30, 2011, for $100,000. The purchase was incorrectly recorded as a debit to repair and maintenance expense. The equipment has a useful life of five years and no residual value. 2. On March 31, 2012, $50,000 was paid to a contractor to landscape the area around a manufacturing plant including the installation of a sprinkler system. The expenditure was debited to the Land account. The landscaping is expected to have a 20-year useful life and no residual value. KJI uses the straight-line method of depreciation for all depreciable assets. Required: 1. Prepare the journal entries at December 31, 2013, to correct the errors (ignore income taxes). 2. Prepare the journal entries to record 2013 depreciation for any assets recorded in requirement 1. 1. Depreciation that should have been recorded in prior years on the equipment: Depreciation that should have been recorded in prior years on land improvements:
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Entry to correct error in recording land improvements: 2. 2013 depreciation: Equipment: $100,000 ÷ 5 years = $20,000 Land improvements: $50,000 ÷ 20 years = $2,500 AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods.
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