Question

PRINTER VERSION BACK NEXT Exercise 9-08 On July 1, 2019, Sheridan Company purchased new equipment for $75,000. Its estimated useful life was 5 years with a $10,000 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. (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 o for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record depreciation on December 31, 2020. (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 o for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS

Answer 1

a) Journal entry

Account title and explanation	Debit	Credit
Depreciation expense (75000-10000/5)*6/12	6500
Accumulated depreciation-equipment		6500

b) Journal entry

Account title and explanation	Debit	Credit
Depreciation expense (75000-10000/5)	13000
Accumulated depreciation-equipment		13000

c) Revised annual depreciation = (75000-32500-5000/10) = 3750

d) Journal entry

Account title and explanation	Debit	Credit
Depreciation expense	3750
Accumulated depreciation-equipment		3750

e) Accumulated depreciation-equipment = 32500+3750 = $36250