Question

Exercise 9-08 On July 1, 2019, Cullumber Company purchased new equipment for $85,000. Its estimated useful life was 5 years with a $12,000 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 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title with list of accounts enter a debit amount enter a credit amount enter an account title with list of accounts enter a debit amount enter a credit amount

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 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title with list of accounts enter a debit amount enter a credit amount enter an account title with list of accounts enter a debit amount enter a credit amount

Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $

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 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title with list of accounts enter a debit amount enter a credit amount enter an account title with list of accounts enter a debit amount enter a credit amount

Compute the balance in Accumulated Depreciation—Equipment for this equipment after depreciation expense has been recorded on December 31, 2022. Accumulated Depreciation—Equipment $ List Of Accounts to use below Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accumulated Depreciation-Plant Assets Advertising Expense Allowance for Doubtful Accounts Amortization Expense Bad Debt Expense Buildings Cash Common Stock Copyrights Cost of Goods Sold Depreciation Expense Dividends Equipment Franchise Freight-In Gain on Disposal of Land Gain on Disposal of Plant Assets Goodwill Income Tax Expense Income Taxes Payable Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Land Improvements Loss on Disposal of Land Loss on Disposal of Plant Assets Maintenance and Repairs Expense Mortgage Payable No Entry Notes Payable Notes Receivable Other Operating Expenses Patents Plant Assets Prepaid Insurance Property Tax Expense Research and Development Expense Revaluation Surplus Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Service Revenue Unearned Service Revenue Website

Answer 1

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 0 for the amounts.) Account Titles and Explanation Debit Credit Depreciation expense (85000-12000/5)*6/12 7300 Accumulated depreciation-equipment 7300

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 0 for the amounts.) Account Titles and Explanation Debit Credit Depreciation expense 14600 Accumulated depreciation-equipment 14600

Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation (85000-36500-5000/10) $4350

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 0 for the amounts.) Account Titles and Explanation Debit Credit Depreciation expense (85000-5000-36500/10) 4350 Accumulated depreciation-equipment 4350

Compute the balance in Accumulated Depreciation—Equipment for this equipment after depreciation expense has been recorded on December 31, 2022. Accumulated Depreciation—Equipment (36500+4350) $40850