Question

On July 1, 2019. Oriole Company purchased new equipment for $80,000. Its estimated useful life was 8 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. 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 for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Prepare the journal entry to 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 eTextbook and Media List of Accounts Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ eTextbook and Media List of Accounts Prepare the journal entry to record depreciation on December 31, 2022. (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

Answer 1

Annual depreciation expense = ( cost of equipment - Salvage value)/useful life

= (80,000-8,000)/8

= $9,000

Depreciation expense for the year 2019 = 9,000 x 6/12

= $4,500

Date	Account Titles and Explanation	Debit	Credit
2019, Dec. 31	Depreciation expense	$4,500
	Accumulated depreciation- equipment		$4,500

Date	Account Titles and Explanation	Debit	Credit
2020, Dec. 31	Depreciation expense	$9,000
	Accumulated depreciation- equipment		$9,000

Accumulated depreciation from July 1, 2019 to December 31, 2021 = 4,500+9,000+9,000

= $22,500

Book value of equipment on January 1, 2022 = Cost of equipment - Accumulated depreciation

= 80,000-22,500

= $57,500

Revised depreciable cost = Book value of equipment on January 1, 2022 - Revised salvage value

= 57,500-5,000

= $52,500

Revised annual depreciation = Revised depreciable cost / Remaining useful life

= 52,500/7.5

= $7,000

Date	Account Titles and Explanation	Debit	Credit
2022, Dec. 31	Depreciation expense	$7,000
	Accumulated depreciation- Equipment		$7,000

Kindly comment if you need further assistance. Thanks‼!