Account Titles and Explanation | Debit | Credit |
Accumulated Depreciation - Machinery | $8,120 | |
Depreciation Expense - Machinery | $8,120 | |
(To record the reversal of depreciation that was charged) | ||
Account Titles and Explanation | Debit | Credit |
Depreciation Expense - Machinery | $6,496 | |
Accumulated Depreciation - Machinery | $6,496 | |
(To record the charging of depreciation for 2021) |
Working notes:
Depreciation charged in previous years: | ||
Cost of the Machinery | $69,600 | |
Less: Salvage Value | ($4,640) | |
Depreciable Value (a) | $64,960 | |
Number of year of useful (b) | 8 | Years |
Depreciation per year charged (c = a/b) | $8,120 | |
Total depreciation charged for 5 years (c * 5 years) | $40,600 | |
New depreciation: | ||
Cost of the Machinery | $69,600 | |
Less: Salvage Value | ($4,640) | |
Depreciable Value (a) | $64,960 | |
Number of year of useful (b) | 10 | Years |
Depreciation per year charged (c = a/b) | $6,496 | |
Total depreciation should be charged for 5 years (c * 5 years) | $32,480 | |
Excess depreciation charged in previous years ($40,600 - $32,480) | $8,120 |
Machinery purchased for $69,600 by Tamarisk Co. in 2016 was originally estimated to have a life...
Machinery purchased for $69,600 by Tamarisk Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,640 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 $5,220 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...
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...
Machinery purchased for $67,200 by Coronado Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,480 at the end of that time. Depreciation has been entered for 5 years on this basis. 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,040 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if necessary....
Machinery purchased for $72,600 by Kingbird Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,840 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 $5,445 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...
Machinery purchased for $74,400 by Splish Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,960 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 $5,580 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...
Machinery purchased for $67,800 by Sunland Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,520 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 $5,085 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...
Machinery purchased for $60,600 by Crane Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,040 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 $4,545 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...
Machinery purchased for $70,800 by Wildhorse Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,720 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 $5,310 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...
Machinery purchased for $71,400 by Waterway Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,760 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 $5,355 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...