Examlex

Solved

On April 1,2010 a Company Discarded a Machine That Had

question 152

Essay

On April 1,2010 a company discarded a machine that had cost $10,000 and had accumulated depreciation of $8,000 as of December 31,2009.The asset had a 5-year life and no salvage value.Prepare the journal entries to record the updating of the depreciation expense and discarding of this asset.


Definitions:

Forward Rate

The predetermined interest rate for a loan or investment that will start in the future, often derived from current yield curves.

Zero-Coupon Bonds

These are bonds that do not pay periodic interest but are issued at a significant discount to their face value, with the full face value being repaid at maturity.

Coupon Rate

The annual interest rate paid by a bond issuer to its holders, expressed as a percentage of the bond's face value.

Par Values

The nominal or face value of a stock or bond as stated by the issuer, fundamental in understanding stock issuance and bond pricing.

Related Questions