# Accounting Paper

Topics: Depreciation, 1920, 2007 Pages: 2 (350 words) Published: February 28, 2012
Brainiac Company purchased a delivery truck for \$30,000 on January 1, 2010. The truck has an expected salvage value of \$2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2010 and 12,000 in 2011. |

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| Compute depreciation expense for 2010 and 2011 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining balance method. (Round cost per mile to 2 decimal places, e.g. 10.50. Use rounded amount for future calculations. Round final answers to 0 decimal places, e.g. 125.)|

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Beka Company owns equipment that cost \$50,000 when purchased on January 1, 2007. It has been depreciated using the straight-line method based on estimated salvage value of \$5,000 and an estimated useful life of 5 years. Prepare Beka Company's journal entries to record the sale of the equipment in these four independent situations. Sold for \$28,000 on January 1, 2010. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

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Beka Company owns equipment that cost \$50,000 when purchased on January 1, 2007. It has been depreciated using the straight-line method based on estimated salvage value of \$5,000 and an estimated useful life of 5 years. InstructionsPrepare Beka Company's journal entries to record the sale of the equipment in these four independent situations. |

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| Sold for \$28,000 on January 1, 2010. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)|
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The following are selected 2010 transactions of Franco Corporation. Jan. 1| Purchased a small company and recorded goodwill of \$150,000. Its useful life is indefinite.| May 1| Purchased for \$90,000 a patent with an estimated useful life of 5 years and a legal life of 20 years.| Prepare necessary adjusting entries at December 31 to record amortization required...