On July 1 2019 Carla Vista Co purchased new equipment for $85,000. its estimated useful life was 5 years with 10,000 salvage value. On december 31 2022, before calculating annual depreciation. the company estimated that equipment remaining useful life was 10 years, with revised salvage value of $5,000 B) prepare a journal entry to record december 31 2020

On July 1 2019 Carla Vista Co purchased new equipment for $85,000. its estimated useful life was 5 years with 10,000 salvage value. On december 31 2022, before calculating annual depreciation. the company estimated that equipment remaining useful life was 10 years, with revised salvage value of $5,000 B) prepare a journal entry to record december 31 2020

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

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On July 1, 2019, Cullumber Company purchased new equipment for $85,000. Its estimated useful life was 5 years with a $12,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019 Account Titles and Explanation Debit Credit Depreciation Expense 7300 Accumulated Depreciation - Equipment 7300 Prepare the journal entry to record depreciation on December 31, 2020. Account Titles and Explanation Debit Credit Depreciation Expense 14600 Accumulate Depreciation - Equipment 14600 - Compute the revised annual depreciation on December 31, 2022. - Prepare the journal entry to record depreciation on December 31, 2022 - Compute the balance in Accumulated Depreciation—Equipment for this equipment after depreciation expense has been recorded on December 31, 2022.