1. Sandhill Co. purchased a new machine on October 1, 2022, at a cost of $80,010. The company estimated that the machine has a salvage value of $7,280. The machine is expected to be used for 72,400 working hours during its 7-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, e.g. 5,275.25.)

2.

On July 1, 2019, Cullumber Company purchased new equipment for $90,000. Its estimated useful life was 6 years with a $12,000 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.

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.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Compute the revised annual depreciation on December 31, 2022.

Revised annual depreciation

$Type your answer here

eTextbook and Media

List of Accounts

Prepare the journal entry to record depreciation on December 31, 2022. (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.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Compute the balance in Accumulated DepreciationEquipment for this equipment after depreciation expense has been recorded on December 31, 2022.

Accumulated DepreciationEquipment

$Type your answer here

3. Pharoah Company had the following assets on January 1, 2022.

Item		Cost		Purchase Date		Useful Life (in years)		Salvage Value
Machinery		$75,000		Jan. 1, 2012		10		$ 0
Forklift		34,000		Jan. 1, 2019		5		0
Truck		40,400		Jan. 1, 2017		8		3,000

During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,400. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the 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.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date Jan. 1June 30Dec. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Jan. 1June 30Dec. 31	enter an account title to record depreciation expense on forklift	enter a debit amount	enter a credit amount
	enter an account title to record depreciation expense on forklift	enter a debit amount	enter a credit amount
	(To record depreciation expense on forklift)
choose a transaction date Jan. 1June 30Dec. 31	enter an account title to record sale of forklift on June 30	enter a debit amount	enter a credit amount
	enter an account title to record sale of forklift on June 30	enter a debit amount	enter a credit amount
	enter an account title to record sale of forklift on June 30	enter a debit amount	enter a credit amount
	enter an account title to record sale of forklift on June 30	enter a debit amount	enter a credit amount
	(To record sale of forklift)
choose a transaction date Jan. 1June 30Dec. 31	enter an account title to record depreciation expense on truck	enter a debit amount	enter a credit amount
	enter an account title to record depreciation expense on truck	enter a debit amount	enter a credit amount
	(To record depreciation expense on truck)
choose a transaction date Jan. 1June 30Dec. 31	enter an account title to record sale of truck on December 31	enter a debit amount	enter a credit amount
	enter an account title to record sale of truck on December 31	enter a debit amount	enter a credit amount
	enter an account title to record sale of truck on December 31	enter a debit amount	enter a credit amount
	(To record sale of truck)