Question

On July 1, 2019. Carla Vista Co purchased new cuipment for $90,000. Ils estimated uselul life was years with a $10.000 Salvage value. On January 1, 2022. belore making is depreciation entry for 2022, the company exiled thereining useful lile to be 10 years beyond December 31, 2022. The new salvage value is estimate the $5.000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indert manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Depreciation Expcnsc Accumulated Depreciation-Equipment 5000 e Textbook and Media Solution Assistance Used List of Accounts Assistance Used Prepare the journal entry Lu record depreciation on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Account Titles and Explanation Debit Credit Depreciation Expense 20000 Accumulated Depreciation Equipment 10000

Answer 1

a) Journal entry

Date	account and explanation	Debit	Credit
2019	Depreciation expense (90000-10000/8)*6/12	5000
	Accumulated depreciation-Equipment		5000

b) Journal entry

Date	account and explanation	Debit	Credit
2020	Depreciation expense (90000-10000/8)	10000
	Accumulated depreciation-Equipment		10000

c) Revised annual depreciation = (90000-25000-5000/10) = 6000

d) Journal entry

Date	account and explanation	Debit	Credit
2022	Depreciation expense	6000
	Accumulated depreciation-Equipment		6000

d) Accumulated depreciation-equipment = 25000+6000 = $31000