Answer
Event |
General Journal |
Debit |
Credit |
[a] |
NO JOURNAL ENTRY REQUIRED |
||
[b] |
Depreciation Expense - Equipment |
$4,838 |
|
Accumulated Depreciation - Equipment |
$4,838 |
||
(to record depreciation for 2021) |
--Working
A |
Original cost |
$70,800 |
B |
Salvage value |
$4,720 |
C = A - B |
Depreciable base |
$66,080 |
D |
Expected life |
8 |
E = C/D |
Annual Depreciation |
$8,260 |
F = E x 5 years |
5 year Depreciation |
$41,300 |
G = A - F |
Book Value at the time of revision |
$29,500 |
H |
New salvage value |
$5,310 |
I = G - H |
New depreciable base |
$24,190 |
J = 10 years - 5 years passed |
New remaining life |
5 |
K = I/J |
New revised depreciation |
$4,838 |
Machinery purchased for $70,800 by Wildhorse Co. in 2016 was originally estimated to have a life...
Machinery purchased for $61,800 by Swifty Co. in 2016 was
originally estimated to have a life of 8 years with a salvage value
of $4,120 at the end of that time. Depreciation has been entered
for 5 years on this basis. In 2021, it is determined that the total
estimated life should be 10 years with a salvage value of $4,635 at
the end of that time. Assume straight-line depreciation.
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Machinery purchased for $69,000 by Vaughn Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,600 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,175 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...
Machinery purchased for $64.800 by Windsor Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4.320 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $4,860 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...
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