Question

Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2021 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2021, balance was purchased in 2019. (Round answers to 0 decimal places, e.g. 45,892.)

Bramble Company shows the following entries in its Equipment account for 2021. All amounts are based on historical cost. 2021 Jan. 1 Balance Aug. 10 Purchases 12 Freight on equipment purchased 25 Installation costs Nov. 10 Repairs Equipment 2021 124,580 | June 30 Cost of equipment sold 32,610 (purchased prior to 2021) 23,710 730 2,630 480 Prepare correcting entry if necessary. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Answer 1

Anseer a) prepare sournalenly partieulars Repairs Expense Afe Cxedt LE Oebit Date Dr 480 To Equuipmeuk eiug the coection mad for xepair aud Hainlaueca expeur Preparalion 4 t Euding balaua in asset. Amount Amount parkiculars Balauce as a Jauuay o2 eauipmeut peundaud Feight Installahon costa Total cost Nes Equuipmeut 124,580 Add Ne $32,610 730 e qusip meut peuvehau 2,630 35970 423710 $136840 plurehakd Less Cost equipmeut elo Balauc as o December Depreciation calulatou straight Line Mekod = 136840o/1oyears .Deprecialou straght Line Melkod )sum-f- years digis Sum the years : nut) lo (10+1) FOr equipmeut purclad in 2019: 2684 7 110 Equui pmeut puvel.aud in lo18 -124580-423710 = 100,870 Depreciation valw isill be $100810x 5 Depreciatian on Neus equipmeut $35970x105 14672 540 2212 'Total Deprecialiou tor 202).