Accounting Problem (Simple)

Instructions

Refer to Question 7.png and Question 8.png, Please provide the correct amounts for each journal entry.

Pharoah Enterprises Ltd. purchased machinery on January 1, 2015. The machinery cost $255,000, and was estimated to have a ten- year useful life and a residual value of $45,000. Straight-line depreciation was recorded each year-end (December 31) to the end of December 31, 2019. On January 1, 2020, Pharoah re-evaluated the machinery. It was now believed that the equipment's total life was expected to be 15 years. Prepare the journal entry to record depreciation for 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 Depreciation Expense 150000 Accumulated Depreciation - Machinery 150000Sheffield Corp., a small company that follows ASPE, owns machinery that cost $905,000 and has accumulated depreciation of $360,000. The undiscounted future net cash flows from the use of the asset are expected to be $506,000. The equipment's fair value is $450,000. Using the cost recovery impairment model, prepare the journal entry, if any, to record the impairment loss. (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.) Account Titles and Explanation Debit Credit Loss on Impairment 39000 Accumulated Impairment Losses - Machinery 39000