lai502
Nov 12, 2008, 05:35 PM
hello can anyone please help me on this homework problem and correct my answers:
on 10/1/08 paton company purchased a copier for 22,500. in addition patton paid freight charges of $400 to have the copier delivered, sales tax of 500, and purchased case of toner and ten cases of paper for 300.
patton estimates that the copier will last for 5 years or approximately 1,000,000 copies. at the end if that time, the salvage value of the copier is expected to be about 3,400.
the total cost if the copier would be $ 23,400
the journal entry that patton will make on 10/1/08, assuming that all purchases are made in cash is:
10/1/08 machine-copier 23,400
cash 23,400
question 2:
compute the depreciation expense for 209 (second year) and the book value of the asset at 12/31/09 after adjustments, using each of the four gaap depreciation methods. patton made 50,000 copies in 2008 and 210,000 copies in 2009.
Activity method:
23400-3400= 20,000 20,000/1,000,000= .02 .02 x 210,000= 4,200 depreciation base
book value= 23,400 - 4,200 = 19,200
Straight line depreciation:
how do i start the straight line method?
I know: 23,400-3,400/5 = 4,000
what do i do from here?
sum of the year's digits
to start of with:
2008 (23,400 - 3,400) x 5/15 = 6,667
2009 (23,400 - 3,400) x 4/15 = 5,333
total: 12,000
double declining method:
2008 23,400 x 40% = 9,360 x 3/12 = 2340
2009 14,040 x 40% = 5,616 x 3/12 = 1,404
total: 3,744
Please correct my answers. thank you.
depreciation for 2009
($23,400-$3,400) x 1/5 x 3/12 =$1000
on 10/1/08 paton company purchased a copier for 22,500. in addition patton paid freight charges of $400 to have the copier delivered, sales tax of 500, and purchased case of toner and ten cases of paper for 300.
patton estimates that the copier will last for 5 years or approximately 1,000,000 copies. at the end if that time, the salvage value of the copier is expected to be about 3,400.
the total cost if the copier would be $ 23,400
the journal entry that patton will make on 10/1/08, assuming that all purchases are made in cash is:
10/1/08 machine-copier 23,400
cash 23,400
question 2:
compute the depreciation expense for 209 (second year) and the book value of the asset at 12/31/09 after adjustments, using each of the four gaap depreciation methods. patton made 50,000 copies in 2008 and 210,000 copies in 2009.
Activity method:
23400-3400= 20,000 20,000/1,000,000= .02 .02 x 210,000= 4,200 depreciation base
book value= 23,400 - 4,200 = 19,200
Straight line depreciation:
how do i start the straight line method?
I know: 23,400-3,400/5 = 4,000
what do i do from here?
sum of the year's digits
to start of with:
2008 (23,400 - 3,400) x 5/15 = 6,667
2009 (23,400 - 3,400) x 4/15 = 5,333
total: 12,000
double declining method:
2008 23,400 x 40% = 9,360 x 3/12 = 2340
2009 14,040 x 40% = 5,616 x 3/12 = 1,404
total: 3,744
Please correct my answers. thank you.
depreciation for 2009
($23,400-$3,400) x 1/5 x 3/12 =$1000