Iverycoast Inc

question 39

Essay

Iverycoast Inc. purchased a van on January 1, 2015, for $800,000. Estimated life of the van was 5 years, and its estimated residual value was $90,000. Iverycoast uses the straight-line method of depreciation. Give journal entry to record the purchase of van for cash.

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Definitions:

Commercial Safes

Commercial safes are secure storage solutions designed for business use to protect valuable items, documents, and cash from theft or fire.

Standard Machine-hours

The predetermined amount of time that machines are expected to operate to meet production targets within a specific period.

Variable Overhead Efficiency Variance

The difference between the actual and the budgeted or standard cost of variable overheads based on the efficient usage of the business resources.

Total Variable Overhead Spending Variance

The variance between real variable overhead expenses and the anticipated expenses, which are determined using standard rates and the actual levels of production.