Question

*Exercise 11-09 Presented below is information related to Oriole Manufacturing Corporation Estimated Life (in years) Estimated Salvage Asset Cost $40,100 $6,200 А 10 В 32,100 5,100 9 36,800 3,500 1,600 9 19,800 7 E 24,700 3,100 6 Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.) Composite rate Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Plant Assets related account.) Account Titles and Explanation Debit Credit Prepare the entry to record the sale of asset D for cash of $5,300. It was used for 6 years, and depreciation was entered under the composite method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Plant Assets related ассount.) Account Titles and Explanation Debit Credit

Answer 1

solution Asset cost Estimated Eliminated - salvage Depreciation 40100 6200 3390 32100 5100 3000 36800 3500 3700 19800 1600 2600 24700 3100 3600 16290 153500 Total Depreciation = (cost of asset - Salvage value) / life Composite rate = 16290/153500 10.61% . Accounts and general Debit Gredit 16290 Depreciation expense Accumulated Depreciation 16290 Accounts and general Delit Gredet 5300 Cash accumulated deprecation plant assets 14500 19800

solution Asset cost Estimated Eliminated - salvage Depreciation 40100 6200 3390 32100 5100 3000 36800 3500 3700 19800 1600 2600 24700 3100 3600 16290 153500 Total Depreciation = (cost of asset - Salvage value) / life Composite rate = 16290/153500 10.61% . Accounts and general Debit Gredit 16290 Depreciation expense Accumulated Depreciation 16290 Accounts and general Delit Gredet 5300 Cash accumulated deprecation plant assets 14500 19800