Questions from Accounting Principles

Q: VanHoutte Foods bought machinery on September 10, 2018, for $

VanHoutte Foods bought machinery on September 10, 2018, for $168,000. It was determined that the machinery would be used for six years or until it produced 260,000 units and then would be sold for abo...

Q: Design Pro purchased on October 1, 2019, $110,

Design Pro purchased on October 1, 2019, $110,000 of furniture that was put into service on November 10, 2019. The furniture will be used for five years and then donated to a charity. Complete the sch...

Q: On April 1, 2020, Ice Drilling Co. purchased a

On April 1, 2020, Ice Drilling Co. purchased a trencher for $125,000. The machine was expected to last five years and have a residual value of $12,500. Required: Calculate depreciation expense for 202...

Q: The Hilton Skating Club used straight-line depreciation for a used

The Hilton Skating Club used straight-line depreciation for a used Zamboni ice-resurfacing machine that cost $43,500, under the assumption it would have a four-year life and a $5,000 trade-in value. A...

Q: On April 3, 2020, David’s Chocolates purchased a machine for

On April 3, 2020, David’s Chocolates purchased a machine for $71,200. It was assumed that the machine would have a five-year life and a $15,200 trade-in value. Early in January 2023, it was determined...

Q: At its December 31, 2019, year-end, Athletic

At its December 31, 2019, year-end, Athletic Apparel had a warehouse with an adjusted book value of $292,500 and an estimated remaining useful life of 15 years and residual value of $90,000. Because o...

Q: Kane Biotech was preparing the annual financial statements and, as part

Kane Biotech was preparing the annual financial statements and, as part of the year-end procedures, assessed the assets and prepared the following alphabetized schedule based on adjusted values at Dec...

Q: Macho Taco sold a food truck on March 1, 2020.

Macho Taco sold a food truck on March 1, 2020. The accounts showed adjusted balances on February 28, 2020, as follows: Food Truck $42,000 Accumulated Depreciation, Food Truck 21,850 Required Record th...

Q: Conway, Kip, and Zack are partners of Force, a

Conway, Kip, and Zack are partners of Force, a local cross-fit training facility with capital balances as follows: Conway, $367,200; Kip, $122,400; and Zack, $244,800. The partners share profit and lo...

Q: Candy Craze purchased and installed a machine on January 1, 2020

Candy Craze purchased and installed a machine on January 1, 2020, at a total cost of $296,800. Straight-line depreciation was taken each year for four years, based on the assumption of a seven year li...