Homework Answers
A) . Correcting Entry
| Account Title and Explanation | Debit | Credit |
| Maintenance and Repairs Expenses | 500 | |
| Equipment | 500 |
B) 1.
Cost of Equipment = Purchases + Freight on Equipment Purchased + Installation Cost
= 32,000 + 700 + 2700 = 35,400
Depreciation on Straight Line Method
## On asset acquired before 2021 = (134,750 - 23,000) / 10
=11,175
##On New asset purchased after 2021 = 35,400 / 10 = 3,540
Total Depreciation = 11,175 +3,540 = 14,715
B.).2
Sum- of-the year digits
Sum of year = 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 55
Depreciation =134,750 - 23,000 * 8 / 55 = 16,255
On New asset purchased after 2021 = 35,400 / 55 * 10 = 6,436
Total = 16,255 + 6,436 = 22,691
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