A company purchases equipment for 225000 on july 12009 with, Ask an Expert

Accounting

A company purchases equipment for $225000 on july 1,2009, with an estimated useful life of 10 years and expected salvage value of $25,000. Straight-line depreciation is used. On july1, 2013, economic factors cause the market value of the equipment to decline to $90,000. On this date, the company examines the equipment for impairment and estimates $125,000 on future cash in flows related to use of this equipment.

a) is the equipment impaired on july1, 2013? Explain.

b) if the equipment in impaired on July1, 2013, compute the impairment loss and prepare a journal entry to record the loss.

c)what amount of depreciation exprense would the company record for the 12 months from July1, 2013 through June 30,2014? Prepare a journal entry to record this depreciation expense.

d)using the financial statement effects template, show how the entries in parts b) and c) affect comapnys balance sheet and income statement.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797307

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - aztec company sells its product for 160 per unit

Question - Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. Units Dollars April (actual) 3,500 $560,000 May (actual) 2,400 $384,000 June (budgeted) 5,000 $800,000 July (budgeted) 4 ...

Question - what is the cash flow statement and why is it an

Question - What is the cash flow statement and why is it an important consideration to both the management, investors and creditors?

Financial accounting processes assignment -assignment

Financial Accounting Processes Assignment - ASSIGNMENT DETAILS - STATEMENT OF CASH FLOWS The financial statements of Pharmacy Adelaide Ltd attached. Additional information: 1. Property, Plant and Equipment costing $141,0 ...

Question time value of money future valueinstructions for

Question: Time Value Of Money: Future Value Instructions: For this milestone, submit a draft of the Time Value of Money section of the final project, along with your supporting explanations. Base your calculations on the ...

Question - the following list of accounts appear in

Question - The following list of accounts appear in alphabetical order and were taken from ABC Corporation's ledger as of December 31, 2018. The Accounts Payable records were missing. Accounts Payable $? Inventory $7,000 ...

Question - x company incurred the following costs in

Question - X Company incurred the following costs in 2017: Factory insurance $4,606 Customer service 4,470 Advertising costs 5,478 Factory maintenance 4,475 Direct materials 5,151 Direct labor 4,165 Factory utilities 5,4 ...

Question - lois braggs owns a small restaurant in boston ms

Question - Lois Braggs owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding expectations for the month of June. The balance in the cash account as of May 3 ...

Question - at the end of 2016 retained earnings for the

Question - At the end of 2016, retained earnings for the Baker Company was $2,550. Revenue earned by the company in 2016 was $2,800, expenses paid during the period were $1,500, and dividends paid during the period were ...

Question - jennifer is a cpa and a single taxpayer using

Question - Jennifer is a CPA and a single taxpayer using the standard deduction. In 2018, her CPA practice generates net income of $162,000 and she has no other income or losses. Jennifer's taxable income before the QBI ...

Taxation law assignment -in june 2016 tom had signed an

TAXATION LAW ASSIGNMENT - In June 2016 Tom had signed an agreement in Sydney with XYZ Ltd to act as the company's plantation manager in Brunei until June 2018. At the time of signing the agreement, Tom was advised that i ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert