Question

Exercise 11-11 Machinery purchased for $66,000 by Splish Co. in 2013 was originally estimated to have a life of 8 years with a salvage value of $4,400 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2018, it is determined that the total estimated life should be 10 years with a salvage value of $4,950 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior year's depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the entry to record depreciation for 2018. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Machinery related account.) Account Titles and Explanation Debit Credit

Answer 1

Original straight line depreciation. $ $ 66,000 - $4,400 - $7700 per year 2013 to 2018 = 5 years Depeciation charged alread = 7700X5 2 $38,500 Book value at End of san 2017 = $ 66060 - $38.500 = $27500 Depaeciation from 2018 = syears left → 2750-4950 - $4510 no Entry required Caedit 2. Date peenkalean Debit Deprecation Expense of $450 To Accumulaled Depreciatiorite to recand peppecialion 7 Expense for 2018 $4510

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