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Danbury Corporation manufactures model airplanes. The company purchased for $228,000 automated production equipment that can make...

Danbury Corporation manufactures model airplanes. The company purchased for $228,000 automated production equipment that can make the model parts. The equipment has a $12,000 salvage value and a 10-year useful life.

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  1. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment

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Answer #1

Depreciation expense = (228000-12000/10) = 21600

Depreciation expense
Dec 31 21600   
Accumulated depreciation-equipment
Dec 31 21600
Dec 31 Bal 21600
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