On June 1, 2014, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours.
Using straight line depreciation, prepare the journal entry to record depreciation expense for (a) the first year, (b) the second year and (c) the last year.
|
Williams Company acquired machinery on July 1, 2009, at a cost of $130,000. The estimated useful life of the machinery was 10 years and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, 2012, Williams sold the equipment for $75,000.
1) Record the journal entry for the depreciation on this machinery for 2012.
2) Record the journal entry for the sale of the machinery.
|
XYZ Co. incurred the following costs related to the office building used in operating its sports supply company:
|
a.
|
Replaced a broken window.
|
|
b.
|
Replaced the roof that had been on the building 23 years.
|
|
c.
|
Serviced all the air conditioners before summer started.
|
|
d.
|
Replaced the air conditioners with refrigerated air conditioners in the customer service areas.
|
|
e.
|
Added a warehouse to the back of the building.
|
|
f.
|
Repainted the interior walls.
|
|
g.
|
Installed window shutters on all windows.
|
|
|
Classify each of the costs as a capital expenditure or a revenue expenditure. For those costs identified as capital expenditures, classify each as an additional or replacement component.
|
|