4.02 Calculating and Journalizing Depreciation Expense

Front

What is the entry to record the transaction of trading an old taxi car for a new taxi van, given the original cost of the old taxi car was $15,000.00, accumulated depreciation was $14,000.00, and cash of $20,000.00 was paid?

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Debit Vehicles $21,000.00; Debit Accumulated Depreciation $14,000.00; Credit Vehicles $15,000.00; Credit Cash $20,000.00

Front

Cooper Fitness Center discarded a treadmill that originally cost $2,000.00. The treadmill had no salvage value and accumulated depreciation was $1,500.00. What is the entry to record this transaction? Options: Debit Accumulated Depreciation $1,500.00; Credit Fitness Equipment $2,000.00; Credit Loss on Disposal of Assets $500.00, Debit Accumulated Depreciation $1,500.00; Debit Loss on Disposal of Assets $500.00; Credit Fitness Equipment $2,000.00, Debit Fitness Equipment $2,000.00; Credit Accumulated Depreciation $1,500.00; Credit Depreciation Expense $500.00, Debit Accumulated Depreciation $2,000.00; Credit Depreciation Expense $1,500.00; Credit Fitness Equipment $500.00

Back

Debit Accumulated Depreciation $1,500.00; Debit Loss on Disposal of Assets $500.00; Credit Fitness Equipment $2,000.00

Front

What is the depreciation expense for the 2nd year of a van purchased for $15,000 with a useful life of 10 years and a salvage value of $1,500 using the sum-of-the-years'-digits method?

Back

$2,209.09

Front

On January 1st, Edmisten Excavating purchased a backhoe for $80,000.00. The backhoe has an estimated useful life of 4 years and an estimated salvage value of $10,000.00. Edmisten Excavating uses a double declining-balance method for What is the depreciation expense for the first year?

Back

$40,000.00

Front

Carson's Skate Shop discarded a display case that originally cost $2,000.00. The display case had no salvage value and was fully depreciated. What is the entry to record this transaction? Options: Debit Display Equipment $2,000.00; Credit Depreciation Expense $2,000.00, Debit Accumulated Depreciation $2,000.00; Credit Depreciation Expense $2,000.00, Debit Accumulated Depreciation $2,000.00; Credit Display Equipment $2,000.00, Debit Display Equipment $2,000.00; Credit Accumulated Depreciation $2,000.00

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Debit Accumulated Depreciation $2,000.00; Credit Display Equipment $2,000.00

Front

Miller Manufacturing discarded a copier that originally cost $3,000.00. The copier had no salvage value and accumulated depreciation was $1,200.00. What is the entry to record this transaction? Options: Debit Accumulated Depreciation $1,200.00; Debit Loss on Disposal of Assets $1,800.00; Credit Office Equipment $3,000.00, Debit Office Equipment $3,000.00; Credit Accumulated Depreciation $1,200.00; Credit Depreciation Expense $1,800.00, Debit Accumulated Depreciation $3,000.00; Debit Depreciation Expense $1,800.00; Credit Office Equipment $1,200.00, Debit Accumulated Depreciation $3,000.00; Credit Office Equipment $1,200.00; Credit Loss on Disposal of Assets $1,800.00

Back

Debit Accumulated Depreciation $1,200.00; Debit Loss on Disposal of Assets $1,800.00; Credit Office Equipment $3,000.00

Front

Jarvis Sofas purchased an upholstery machine for $30,000.00 with an estimated useful life of 5,000 sofas and no salvage value. In the first year, the machine produced 1,200 sofas. What is the depreciation for the first year?

Back

$7,200.00

Front

On January 1st, Regal Cinemas purchased a digital projector for $10,000 with an estimated useful life of 5 years and an estimated salvage value of $1,000. Regal Cinemas uses double declining-balance method for depreciation. What is the depreciation expense for the 2nd year?

Back

$2,400.00

Front

JH Enterprise purchased a machine for $13,500.00 with an estimated useful life of 5,000 hours and no estimated salvage value. Using the production-units method of depreciation, if the machine was used for 600 hours in the first year, what is the depreciation for the first year?

Back

$1,620.00

Front

What is the depreciation expense for the 2nd year of a camera purchased for $2,000 with a useful life of 3 years and a salvage value of zero, using the sum-of-the-years'-digits method?

Back

$666.67