Comprehensive Accounting Journal Entries for Depreciation, Asset Disposal, Stock Issuance, Dividends, and Treasury Stock Transactions

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ComprehensiveAccounting Journal Entries for Depreciation, Asset Disposal, StockIssuance, Dividends, and Treasury Stock TransactionsPart 1. Depreciation calculations from Chapter 10 using straight-line, units of production and double-decliningbalance. Accumulated depreciation balances, Net Book Values.Please use the following information to answer thenext series of questions. Each correct answer is worth 4 points, or 40 total points for this part.Due to age of production equipment, ACAP Enterprises purchased new equipment on January 1, 2012. Thefollowing information applies to this equipment.➢Cost is $849,000➢Estimated residual value is $49,000➢Estimated useful life is 5 years➢The equipment has estimated hours of use totaling 32,000 machine hours➢In 2012 the equipment was used for 6,000 actual machine hours➢In 2013 the equipment was used for 7,500 actual machine hoursHINT: To determine the correct answers for some of the questions related to 2013, you need to consider whathappened in 2012. Pay close attention to the way residual (salvage) value is used with each method.SHOW YOURWORK!1.1What is the JE to record depreciation expense for2012if the Straight-line method is used?1.2What is the (net) book value of the asset at the end of2012(assuming straight-line)?1.3What is the balance in Accumulated Depreciation after5 years(end of2016)(assuming straight-line)?**************1.4What is the JE to record depreciation expense for2012if the units-of-production method is used?1.5What is the (net) book value of the asset at the end of2013(assuming the units-of-production method)?1.6What is the balance in Accumulated Depreciation after 2 years (end of2013)(assuming units-of-production method)?**************1.7What is the JE to record depreciation expense for2012if the double-declining balance (DDB) is used?1.8What is the (net) book value of the asset at the end of2012(assuming DDB)?1.9What is the JE to record depreciation expense for2013if the double-declining balance (DDB) is used?1.10What is the balance in Accumulated Depreciation after 2 years (end of2013)(assuming DDB is used)?Part 2. Journal entries to record the saleof plant assets. Chapter 11. Please prepare the following journal entries torecord the disposal of plant assets. Each journal entry is worth6points (12points)Merrimac Commercial Ovens rents ovens to small bakeries on an hourly basis. It is time to replace some of the cookingand refrigeration equipment. The ovens are recorded at a cost of $96,000. Accumulated Depreciation is $61,000. Asalvage dealer has offered to buy the ovens for $39,000 cash.The refrigeration equipment has a recorded cost of $75,000, and accumulated depreciation is $70,000. The equipment canbe sold for $3,500.1.Record the journal entry for the sale of the ovens2.Record the journal entry for the sale of the refrigeration equipmentHINT: You need to record a Gain or a Loss on the sale of the plant assetsPart 3. Issuing commonstock(Chapter 12). Record journal entries for the following three events, for threedifferent companies. Each journal entry is worth 6 points (18 total points)3.1TheMiller Corporation is a public company. Recently, the company authorized the issuance of the sale of 1,000,000shares of $5 par value common stock for $18 per share.Record the journal entry to record the sale of stock.

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