The following data relate to the Plant Assets account of Eshkol, Ltd. at December 31, 2022.

The following transactions occurred during 2023.

a. On May 5, Asset A was sold for £13,000 cash. The company’s bookkeeper recorded this retirement in the following manner in the cash receipts journal.

b. On December 31, it was determined that Asset B had been used 2,100 hours during 2023.

c. On December 31, before computing depreciation expense on Asset C, the management of Eshkol, Inc. decided the useful life remaining from January 1, 2023, was 10 years.

d. On December 31, it was discovered that a plant asset purchased in 2022 had been expensed completely in that year. This asset cost £28,000 and has a useful life of 10 years and no residual value. Management has decided to use the double-decliningbalance method for this asset, which can be referred to as “Asset E.”

Instructions

Prepare the necessary correcting entries for the year 2023. Record the appropriate depreciation expense on the above-mentioned assets. Ignore taxes.

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Plant Assets A В C D Original cost £46,000 £51,000 £80,000 £80,000 Year purchased 2017 2018 2019 2021 Useful life 15,000 hours 10 years 15 years 10 years Residual value £ 3,100 £ 3,000 £ 5,000 £ 5,000 Sum-of-the-years- Activity Straight- Double-declining- line Depreciation method digits balance Accum. Depr. through 2022 £31,200 £35,200 £15,000 £16,000 *For Assets A, C and D, in the year an asset is purchased, Eshkol does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Eshkol takes a full year's depreciation on the asset.