On July 1, 2019, Oriole Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $8,000 salvage value. On January 1, 2022, before making its depreciation entry for 2022, the company estimated the remaining useful life to be 10 years beyond December 31, 2022. The new salvage value is estimated to be $5,000. (a) Correct answer iconYour answer is correct. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Question

Jennifer Medina

Business

11 March, 04:31

On July 1, 2019, Oriole Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $8,000 salvage value. On January 1, 2022, before making its depreciation entry for 2022, the company estimated the remaining useful life to be 10 years beyond December 31, 2022. The new salvage value is estimated to be $5,000. (a) Correct answer iconYour answer is correct. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

+5

Answers (2)

Know the Answer?

Clark Pena · Answer 1

The answer follows below;

Explanation:

Purchase cost $80,000

Salvage Value ($8,000)

Depreciable amount $72,000

Useful life 8 years

Depreciation for December 31, 2019 $9,000

Depreciation Expense Dr.$9,000

Accumulated Depreciation Cr.$9,000

Juan Bass · Answer 2

80000 Cost

8 Years

8000 Salvage

Cost Depreciaction

80000 8000 72000 6 4500 67500 Year 1 dic-19

67500 12 9000 58500 Year 2 dic-20

58500 12 9000 49500 Year 3 dic-21

57500 Cost

10 Years

5000 Salvage

Cost Depreciaction

57500 5000 52500 12 5250 47250 Year 1 dic-22

47250 12 5250 42000 Year 2 dic-23

42000 12 5250 36750 Year 3 dic-24

36750 12 5250 31500 Year 4 dic-25

31500 12 5250 26250 Year 5 dic-26

26250 12 5250 21000 Year 6 dic-27

21000 12 5250 15750 Year 7 dic-28

15750 12 5250 10500 Year 8 ene-29

10500 12 5250 5250 Year 9 feb-29

5250 12 5250 0 Year 10 mar-29

Depreciation 2019 D C

depreciation expense 4500

Accumulate depreciation 4500

Depreciation 2019

Explanation:

80000 Cost

8 Years

8000 Salvage

Cost Depreciaction

80000 8000 72000 6 4500 67500 Year 1 dic-19

67500 12 9000 58500 Year 2 dic-20

58500 12 9000 49500 Year 3 dic-21

57500 Cost

10 Years

5000 Salvage

Cost Depreciaction

57500 5000 52500 12 5250 47250 Year 1 dic-22

47250 12 5250 42000 Year 2 dic-23

42000 12 5250 36750 Year 3 dic-24

36750 12 5250 31500 Year 4 dic-25

31500 12 5250 26250 Year 5 dic-26

26250 12 5250 21000 Year 6 dic-27

21000 12 5250 15750 Year 7 dic-28

15750 12 5250 10500 Year 8 ene-29

10500 12 5250 5250 Year 9 feb-29

5250 12 5250 0 Year 10 mar-29

Depreciation 2019 D C

depreciation expense 4500

Accumulate depreciation 4500

Depreciation 2019