Exercise 11-16 (Part Level Submission) Presented below is information related to
ID: 2508530 • Letter: E
Question
Exercise 11-16 (Part Level Submission)
Presented below is information related to equipment owned by Oriole Company at December 31, 2017.
Assume that Oriole will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years.
Prepare the journal entry to record depreciation expense for 2018. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
The fair value of the equipment at December 31, 2018, is $6,375,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Cost $11,250,000 Accumulated depreciation to date 1,250,000 Expected future net cash flows 8,750,000 Fair value 6,000,000Explanation / Answer
Date Accounts Tittles and Explaination Debit Credit 1 31 December 2018 Depreciation Expense $ 15,00,000 Accumulated Depreciation-Equipment $ 15,00,000 a New Carrying amount $ 60,00,000 b Useful Life 4 years Depreciation per year (a/b) $ 15,00,000 Date Accounts Tittles and Explaination Debit Credit 2 31 December 2018 No Entry. No entry is necessary. Restoration of any impairement loss is not permitted if the asset is held for use.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.