Scribd Logo
Hochladen

Willkommen bei Scribd!

  • Ch 11 Quiz - Impairment, Depreciation Entries

    Hochgeladen von

    Rachel Lam
    47 Ansichten2 Seiten
    The document provides information and questions regarding the accounting treatment of equipment for two companies, Sprague Inc. and Agazzi Company. For Sprague, the recoverable amount of equipment is less than its carrying amount, so an impairment loss must be recorded. Depreciation expense for 2011 should also be recorded. For Agazzi, the document asks to calculate 2011 depreciation expense using two different depreciation methods.

    Originalbeschreibung:

    Originaltitel

    Ch11 quiz

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Verfügbare Formate

    DOCX, PDF, TXT oder online auf Scribd lesen

    Stufen Sie dieses Dokument als nützlich ein?

    Sind diese Inhalte unangemessen?

    Dieses Dokument melden
    The document provides information and questions regarding the accounting treatment of equipment for two companies, Sprague Inc. and Agazzi Company. For Sprague, the recoverable amount of equipment is less than its carrying amount, so an impairment loss must be recorded. Depreciation expense for 2011 should also be recorded. For Agazzi, the document asks to calculate 2011 depreciation expense using two different depreciation methods.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Als DOCX, PDF, TXT herunterladen oder online auf Scribd lesen
    Markieren Sie unangemessene Inhalte
    47 Ansichten2 Seiten

    Ch 11 Quiz - Impairment, Depreciation Entries

    Hochgeladen von

    Rachel Lam
    The document provides information and questions regarding the accounting treatment of equipment for two companies, Sprague Inc. and Agazzi Company. For Sprague, the recoverable amount of equipment is less than its carrying amount, so an impairment loss must be recorded. Depreciation expense for 2011 should also be recorded. For Agazzi, the document asks to calculate 2011 depreciation expense using two different depreciation methods.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Als DOCX, PDF, TXT herunterladen oder online auf Scribd lesen
    Markieren Sie unangemessene Inhalte
    von 2

    Ch.

    11 Quiz
    Name ____________________________________ ____________________________________ _____________________________________ 1. On Dec. 31, 2010, Sprague Inc. has equipment with cost of $900,000 and accumulated depreciation of $400,000. The projected present value of net future cash flows from the equipment is $300,000 and the estimated fair value (less cost of disposal) of the equipment is $280,000. Management intends to continue to use this equipment. The remaining useful life is 3 years with no residual value. Required: a. Prepare appropriate journal entries to record the impairment for Sprague, if any.

    b. Prepare the journal entries to record depreciation expense for Sprague in 2011.

    c. On Dec. 31, 2011, the estimated recoverable amount of this equipment is $420,000. Prepare any necessary journal entries, if any.

    2. Agazzi Company purchased equipment for $304,000 on October 1, 2010. It is estimated that the equipment will have a useful life of 8 years and a residual value of $16,000. Required: a. Compute depreciation expense for 2011 using Sum-of-the-Years method.

    b. Compute depreciation expense for 2011 using Double-Declining-Balance method

    Das könnte Ihnen auch gefallen