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question double declining accounting of fixed assets on october 1 2011 wild welding 4285840

Question

Double Declining Accounting of Fixed Assets

On October 1, 2011 Wild Welding Incorporated purchased equipmentfor $475,000 cash. Wild Welding Inc intends to use the machine for10 years and estimates its resale value at the end of the 10 yearsto be $40,000. Wild Welding uses the double declining balancemethod to depreciate the organizations equipment.

a.)       Prepare the journal entry that Wild Welding Inc would need toaccount for the purchase of the equipment on October 1,2011.                                                                 b.)   Prepare the journal entry that WildWelding Inc would need to account for FY2011 use of the equipmenton December 31,2011{Be Careful-Think about how many months theequipment has been used in FY2011}.

c.)       Prepare the journal entry that Wild Welding Inc would need toaccount for FY2012 use of the equipment on December 31,2012.

d.)       Prepare the journal entry that Wild Welding Inc would need toaccount for FY2013 use of the equipment on December 31,2013.

 

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