Question
2015 2015 Jan. 1 Balance 141,500 June 30 Cost of Equipment Sold Aug. 10 Purchases 36,900 (purchased prior to 2015) 30,700 Aug. 12 Freight on
2015 | 2015 |
Jan. 1 Balance 141,500 | June 30 Cost of Equipment Sold |
Aug. 10 Purchases 36,900 | (purchased prior to 2015) 30,700 |
Aug. 12 Freight on equipment purchased 720 | |
Aug. 25 Installation costs 2,890 | |
Nov. 10 Repairs 590 |
Mike Devereaux Company shows the following entries in its Equipment account for 2015. All amounts are based on historical cost.
Prepare correcting entry if necessary.
|
Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2015 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2015, balance was purchased in 2013.Prepare correcting entry if necessary.
(1) Straight-line. $
(2) Sum-of-the-year's-digits. $
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