Additional Problem 5 Wildhorse Enterprises Ltd. purchased machinery on September

Question

Additional Problem 5 Wildhorse Enterprises Ltd. purchased machinery on September 1, 2014. The machinery cost $358,200, and was estimated to have a 10 useful life and a residual value of $58,200. Straight-line depreciation was recorded each year-end (December 31) to the end of December 31, 2018. On January 1, 2019, Wildhorse re-evaluated the machinery. It was now believed that the equipment could be resold for $17,000 on December 3, 2021. Prepare the journal entry to record depreciation for 2019 Credit account titles are automatica y dented when the amo t is entered Do not dent manua ·If entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Dec. 31 Debit Credit SHOW LIST OF ACCOUNTS

Explanation / Answer

Journal entry

Depreciation for the year 2014 ($358,200 - $58,200)/10 * 4/12) $      10,000 Depreciation for the years 2015-2018 ($358,200 - $58,200)/10 * 4) $   120,000 Accumulated depreciation as on 31-Dec-2018 $   130,000 Cost $   358,200 Less: Accumulated depreciation $ (130,000) Book value $   228,200 Less: Revised residual value $   (17,000) Revised depreciable base $   211,200 Estimated remaining life                       3 New annual depreciation ($211,200 / 3) $      70,400

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.