X Company prepares annual financial statements. On January 1, 2012, it purchased
ID: 2484902 • Letter: X
Question
X Company prepares annual financial statements. On January 1, 2012, it purchased a machine for $68,000. Its estimated useful life was 4 years and its estimated disposal value in 4 years was $9,000. Using straight-line depreciation, what is the adjusting entry on December 31, 2014?
Equipment and Paid-In Capital both decrease by $14,750
Equipment and Paid-In Capital both decrease by $17,000
Equipment and Retained Earnings both decrease by $17,000
Equipment and Retained Earnings both increase by $29,500
Equipment and Retained Earnings both decrease by $14,750
Equipment and Retained Earnings both decrease by $29,500
Explanation / Answer
Equipment and Retained Earnings both decrease by $14,750
Overhead $ 68,000 Special Tool $ (9,000) Depreciable Amount $ 59,000 Depreciation/Year $ 14,750Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.