Question

On July 1, 2019, Blossom Company purchased new equipment for 570,000. Its estimated useful life was 5 years with a 58,000 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 Accumulated Depreciation-Equipment e Textbook 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 e Textbook and Media List of Accounts Compute the revised annual depreciation on December 31, 2022. Revised annual depreciations e Textbook 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 e Textbook and Media List of Accounts Compute the balance in Accumulated Depreciation Equipment for this equipment after depreciation expense has been recorded on December 31, 2022 Accumulated Depreciation Equipments eTextbook and Media List of Accounts

Answer 1

costs $70000 useful life = 5 years Salage value = $8000 Annual depreciation = $70000 - $8000 5 years - $ 12400 Dec 31,2010 Depreciation I $12000 Accumulated depreciation $2400 Dec 31,2020 Depreciation Accumulated depreciation $ 12000 $(2400 Revised Annual depreciation on Dec 31, 2022 Book value = 70000 - ( 12400x3) $32800 32800 - $5000 7 years (Remaining) $4686 $ 4686 Depreciation Accumulated depreciation $4686 Balance as in in Accumulated depreciation Dec 31, 2022. [$ 111886