re https://edugen. wileyplus.com/edugen/student/mainfr.uni Machinery purchased f
ID: 2586483 • Letter: R
Question
re https://edugen. wileyplus.com/edugen/student/mainfr.uni Machinery purchased for $ 133,200 by Tom Brady Co. in 2010 was originally estimated to have a ife of 8 years with a salvage value of $ 8,880 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2015, it is determined that the total estimated life should be 10 years with a salvage value of $ 9,990 at the end of that time. Assume straight line deprecitio years ight-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 0 for the amounts. Credit account titles are automatically indented when amount f is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO± SIMILAR PROBLE Prepare the entry to record depreciation for 2015. (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.)Explanation / Answer
original depreciation = (133200-8,880)/8 15540 original cost 133,200 Accumulated depreciation (15540*5) -77700 book value after 5 years 55,500 new depreciation (55500-9,990)/(10-5) 9102 Journal Entry No entry for - prior years depreciation account titles & explanations Debit Credit Depreciation expense 9,102 Accumulated Depreciation 9,102
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