Questions from Financial Accounting

Q: On October 1, Organic Farming purchases wind turbines for $140

On October 1, Organic Farming purchases wind turbines for $140,000. The wind turbines are expected to last six years, have a salvage value of $20,000, and be depreciated using the straight-line method...

Q: On April 1, Cyclone Co. purchases a trencher for $

On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Compute depreciation expense at December 31 for both the firs...

Q: On April 1, Cyclone Co. purchases a trencher for $

On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Compute depreciation expense at December 31 for both the firs...

Q: Apex Fitness Club uses straight-line depreciation for a machine costing

Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated four- year life and a $2,400 salvage value. At the beginning of the third year, Apex determines that...

Q: Oki Company pays $264,000 for equipment expected to last

Oki Company pays $264,000 for equipment expected to last four years and have a $29,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $22,000 ca...

Q: Martinez Company owns a building that appears on its prior year-

Martinez Company owns a building that appears on its prior year-end balance sheet at its original $572,000 cost less $429,000 accumulated depreciation. The building is depreciated on a straight-line b...

Q: Paris Inc. began operations in Year 1. Following is a

Paris Inc. began operations in Year 1. Following is a series of transactions and events involving its long- term debt investments in available-for-sale securities. Year 1 Mar. 10 Purchased Apple bonds...

Q: Analyze each of the following transactions by showing its effects on the

Analyze each of the following transactions by showing its effects on the accounting equation— specifically, identify the accounts and amounts (including + or −) for each transaction. Jan. 1 Purchased...

Q: Diaz Company owns a machine that cost $250,000 and

Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare the entry to record the disposal of the machine on January 1 in each separate situation. 1. The mac...

Q: Rayya Co. purchases a machine for $105,000 on

Rayya Co. purchases a machine for $105,000 on January 1, 2020. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July...