Question

Anybody here good at accounting? I always give medals!!!

https://answers.yahoo.com/question/index?qid=20150405120529AAjOOkx

Answer 1

I mainly just need to know how to calculate the entries for the depreciation exp and accumulated depreciation.

Answer 2

better link: https://answers.yahoo.com/question/index?qid=20150405125459AA02IVT

Answer 3

Pryce Company owns equipment that cost $68,250 when purchased on January 1, 2012. It has been depreciated using the straight-line method based on estimated salvage value of $6,500 and an estimated useful life of 5 years.

Prepare Pryce Company’s journal entries to record the sale of the equipment in these two independent situations.

(A)Sold for $10,400 on October 1, 2015.
(B)Sold for $38,050 on May 1, 2015.

so your looking at keeping track of the depreciation, and then selling it at a loss or gain if present

Answer 4

Depreciation expense = accumulated dep

depreciation = (cost-salvage)/lifetime

Answer 5

68250
-6500
------
61750/(5*12) for a monthly expense

multiply that by the number of months that have passed to determine the depreciation that has accumulated

Answer 6

Okay from that this is what I got: 61,450/(5*12)= 1024. So would I Dr. Depreciation Exp 1024 and Cr. 1024 for the first one?

Answer 7

Or would I take that number and multiply it by the number of months passed, and if we're dealing with Oct 1st then it would be 10, so the total outcome would be 10,240???

Answer 8

And the for May first, the number we would be multiplying by would be 4 right?so in that case, the total would be 4,096???

Answer 9

1029.17 a month is what im getting as depreciation

why monthly? we have a partial year to account for, so how many months have passed? that is the accumulation of the depreciation

Answer 10

when we sell it

we left the dep exp for the partial year, and right the accum dep for the partial year

when we sell it, we have to zero out the accum dep and take a gain or loss

Answer 11

I got my first answer like this: 61,450/(5*12)= 1024. So would I Dr. Depreciation Exp 1024 and Cr. 1024?

How did you get the 1029? and would that number be the entry for the journal?
Dr. Depreciation Exp 1029 and Cr. Accumulated Depreciation 1029?

Answer 12

68250-6500 = 61750, not 61450

Answer 13

Ohh okay, I see that now. So is 1029 the answer for the first one? I think they have to be different numbers

Answer 14

I need to figure out what to dr. and cr.

Answer 15

we have 3 years, 8months of accumulating deprciation

36+8 = 44 months of 1029.17 just adding up

8 months of 1029.17 has been accumulating for current year of sale, so we

dep exp 8(1029.17)
accum dep 8(1029.17)


now we zero out the accum dep when we sell the equipment, it tells us the book value of the equipment in order to determine gain or loss

Answer 16

I got 8,233.36.

Answer 17

Cash 10400
Accum Dep 44(1029.17)

Equip 68250

whats do we need to do to balance the books? gain or loss?

Answer 18

Accum. dep.-Equipment =46,313
Cash =10,400
Loss on disposal =11,537
Equipment =68,250

Answer 19

But I still don't know how to find this:
Depreciation expense ???
Accum. dep.-Equipment ???

Answer 20

your loss is wrong

ive already explained it 2 times ... now you explain what your thoughts are to me so i can see where the disconnect is.

Answer 21

No, I know that loss is correct. I have three tries to get it and that part is correct. I guess i'm just getting a little confused with what you're trying to say. What I originally did to find the entries was this:

68,250-6500=61750\5=12,350

dr. depreciation expense 12,350
cr. accumulated depreciation 12,350

and that is what I thought my entry would be but it's wrong.

Answer 22

12350 per year good, for how many year?

Answer 23

3

Answer 24

right?

Answer 25

3 full years, and a partial ... 8 out of 12 is 8/12 of a year which we use to determine the dep for the year of sale

Answer 26

okay, so we take the 12,350 and multiply it by (8/12) right?

Answer 27

we can yes

Answer 28

my calculator gives me 8233.33

Answer 29

right, thats the depreciation for the year that we are selling it, it has to be recorded.

the account that goes with it is the accumulated dep account.

Answer 30

okay so this would be the entry:
Dr. depreciation expense 8233
Cr. accumulated depreciation 8233

Answer 31

yes at least one of them ... then we would record the sale

Answer 32

how much depreciation has actually accumulated over 3 years, 8 months?

Answer 33

For may would we just multiply 12,350 (4/12)?

and I think the total depreciation would be the 37,050 we had in the chart earlier?

Answer 34

jfma, yeah 4 months worth

Answer 35

and that would be 4,116?
Dr depreciation expense 4116
Cr. accumulated depreciation 4116

Answer 36

for the year of sale yes

Answer 37

Okay, thanks so much for helping me!

Answer 38

youre welcome, good luck