WorksheetsA2 Chapter 7: Accounting for Plant Assets
Total questions: 23
Worksheet time: 12mins
JH Enterprise purchased a machine for $13,500. The machine has an estimated useful life of 5,000 hours and no estimated salvage value. JH Enterprise uses the production-units method of depreciation. In the first year of use, the machine was used for 600 hours. What is the depreciation for the first year?
$1,350
$1,620
$2,000
$2,700
Ford Motor Company purchased a brake machine for $100,000. The machine has an estimated useful life of 50,000 brakes and no estimated salvage value. Ford Motor Company uses the production-units method of depreciation. In the first year of use, the brake machine produced 4,000 brakes. What is the depreciation for the first year?
$2,000
$4,000
$8,000
$20,000
Jarvis Sofas purchased an upholstery machine for $30,000. The upholstery machine has an estimated useful life of 5,000 sofas and no estimated salvage value. Jarvis Sofas uses the production-units method of depreciation. In the first year of use, the upholstery machine produced 1,200 sofas. What is the depreciation for the first year?
$1,200
$3,000
$5,000
$7,200
On January 1, Taxi Service, Inc., purchased a new taxi for $18,000. The taxi has an estimated useful life of five years and an estimated salvage value of $3,000. Taxi Service, Inc., uses the sum-of-the-years'-digits method of depreciation. What is the depreciation expense for the second year?
$3,000
$3,600
$4,000
$5,000
Brandon's Sports Grille sold an old oven for $500. The original cost of the oven was $2,000. The oven had no salvage value and had accumulated depreciation of $1,000. The entry to record this transaction is:
debit Cash, $500, Accumulated Depreciation, $1,000; credit Kitchen Equipment, $1,500.
debit Accumulated Depreciation, $1,000, Gain on Sale of Asset, $1,000; credit Kitchen Equipment, $2,000.
debit Kitchen Equipment, $2,000; credit Accumulated Depreciation, $1,000, Gain on Sale of Asset, $1,000.
debit Cash, $500, Accumulated Depreciation, $1,000, Loss on Sale of Asset, $500; credit Kitchen Equipment, $2,000.
Carson's Skate Shop discarded a display case that originally cost $2,000. The display case had no salvage value and was fully depreciated. The entry to record this transaction is:
debit Display Equipment, $2,000; credit Depreciation Expense, $2,000.
debit Display Equipment, $2,000; credit Accumulated Depreciation, $2,000.
debit Accumulated Depreciation, $2,000; credit Display Equipment, $2,000.
debit Accumulated Depreciation, $2,000; credit Depreciation Expense, $2,000.
Tucker's Café discarded a dishwasher that originally cost $8,000. The dishwasher had no salvage value and was fully depreciated. The entry to record this transaction is:
debit Accumulated Depreciation, $8,000; credit Depreciation Expense, $8,000.
debit Accumulated Depreciation, $8,000; credit Kitchen Equipment, $8,000.
debit Kitchen Equipment, $8,000; credit Accumulated Depreciation, $8,000.
debit Kitchen Equipment, $8,000; credit Depreciation Expense, $8,000.
Kaylee's Kinder Care sold an activity van for $6,000. The original cost of the van was $25,000. The van had no salvage value and had accumulated depreciation of $18,000. The entry to record this transaction is:
debit Cash, $6,000, Accumulated Depreciation, $18,000, Loss on Sale of Asset, $1,000; credit Vehicles, $25,000.
debit Accumulated Depreciation, $18,000, Gain on Sale of Asset, $7,000; credit Vehicles, $25,000.
debit Vehicles, $25,000; credit Accumulated Depreciation, $18,000, Gain on Sale of Asset, $7,000.
debit Cash, $6,000, Accumulated Depreciation, $18,000; credit Vehicles, $24,000.
On January 1, Appalachian Manufacturing purchased a machine for $18,000. The machine has an estimated useful life of four years and an estimated salvage value of $1,000. Appalachian Manufacturing uses the double declining balance method of depreciation. What is the depreciation expense for the first year?
$4,000
$4,500
$8,500
$9,000
On January 1, Warrior Paint Company purchased a van for $15,000.00. The van had an estimated useful life of 10 years and an estimated salvage value of $1,500.00. Warrior Paint Company uses the sum-of-the-years'-digits method of depreciation. What is the depreciation expense for the first year?
$1,350.55
$1,500.00
$2,454.55
$3,000.00
On January 1, Warrior Paint Company purchased a van for $15,000.00. The van has an estimated useful life of 10 years and an estimated salvage value of $1,500.00. Warrior Paint Company uses sum-of-the-years'-digits method of depreciation. What is the depreciation expense for the second year?
$1,500.00
$2,209.09
$2,454.55
$3,000.00
Appalachian Ski Mountain traded an old snowmobile for a new snowmobile. The original cost of the old snowmobile was $8,000. Accumulated depreciation on the old snowmobile was $6,500. Cash of $8,500 was paid in the trade. The entry to record this transaction is:
debit Vehicles, $10,000, Accumulated Depreciation, $6,500; credit Vehicles, $8,000, Cash, $8,500.
debit Vehicles, $16,500; credit Accumulated Depreciation, $6,500, Gain on Sale of Asset, $10,000.
debit Vehicles, $8,500, Accumulated Depreciation, $6,500; credit Vehicles, $15,000.
debit Vehicles, $8,500; credit Cash, $8,500.
Gym America traded a gymnastic beam for a new gymnastic springboard. The original cost of the gymnastic beam was $5,000. Accumulated depreciation on the gymnastic beam was $3,000. Cash of $2,000 was paid in the trade. The entry to record this transaction is:
debit Equipment, $2,000; credit Cash, $2,000.
debit Equipment, $2,000, Accumulated Depreciation, $3,000; credit Equipment, $5,000.
debit Equipment, $5,000; credit Accumulated Depreciation, $3,000, Gain on Sale of Asset, $2,000.
debit Equipment, $4,000, Accumulated Depreciation, $3,000; credit Equipment, $5,000, Cash, $2,000.
