Exercise 11-11 (Part Level Submission) Machinery purchased for $61,800 by Marigo

Question

Exercise 11-11 (Part Level Submission) Machinery purchased for $61,800 by Marigold Co. in 2013 was originally estimated to have a life of 8 years with a salage value of $4,120 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 $4,635 at the end of that time. Assume straight-line depreciation. ? (a) Your answer is correct. 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 No Entry Debit Credit No Entry Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT

Explanation / Answer

Depreciation Expenses A/c Debit $ 4223

Acc. Depreciation A/c Credit $ 4223

Calculation of Amount:

Value $ 61800

Depreciation till 5th year $ 36050

Remaining value 61800-36050 = 25750

Salvage value 4635

Depreciation amount would be 25750-4635/5 = $ 4223

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