Maurice Tutor

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Category > Management Posted 04 Feb 2018 My Price 8.00

Vandre Oil Company

Acquisition and Depreciation of Assets

Vandre Oil Company, which prepares financial statements on a calendar-year basis, purchased new drilling equipment on July 1, 2009, using check numbers 1035 and 1036. The check totals are shown here, along with a breakdown of the charges.

Assume that the estimated life of the drilling equipment is 10 years and its salvage value is $7,000

1. Record the disbursements on July 1, 2009, assuming that no entry had been recorded for the drilling equipment.

2. Disregarding the information given about the two checks, assume that the drilling equipment was recorded at a total cost of $195,000. Calculate the depreciation expense for 2009 using the straight-line method.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 04 Feb 2018 06:02 PM My Price 8.00

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