Question

On July 1, 2019, Crane Company purchased new equipment for $75,000. Its estimated useful life was 5 years with a $8,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Your answer is partially correct. Prepare the journal entry to record depreciation on December 31, 2019. (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 O for the amounts.) Account Titles and Explanation Debit Credit Depreciation Expense Accumulated Depreciation-Equipment

Answer 1

Crane Company Journal Enteries Date Particulars Debit in $ Credit in $ 31.12.2019 Depreciation Expense a/c Dr. 6700 To Accum. Depre - Equip. 6700 (To record depreciation) (75000 - 8000 )/5 = 13400 x 6/12 = 6700 13400 31.12.2020 Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) 13400 13400 31.12.2021 Depreciation Expense a/c Dr. To Accum. Depre-Equip. (To record depreciation) 13400