Example Cherokee Company acquired a machine on July 1, 2009, that cost $2,700 and had an estimated residual value of $200 and a useful life of 5 years Assume the company uses the double declining balance method and that year end is December 31st Calculate the following A Depreciation for 2009 B Depreciation for 2010 C Year end Depreciation Adjusting Entry at December 31, 2009 D Accumulated Depreciation Balance at December 31, 2010 E Book Value for the Machine at December 31, 2010 Example Beckworth Company purchased a truck on January 1, 2009, at a cash cost of $10,600 The estimated residual value was $400 and the estimated useful life was 4 years The company uses straight line depreciation method On July 1, 2011, the company sold the truck for $1,700 cash A What was the amount of accumulated depreciation at December 31, 2010 B Give the required journal entries on the date of disposal, July 1, 2011 (Assume no 2011 depreciation had yet been recorded)

Question

Example  Cherokee Company acquired a machine on July 1, 2009, that cost $2,700 and had an estimated residual value of $200 and a useful life of 5 years  Assume the company uses the double declining balance method and that year end is December 31st  Calculate the following  A  Depreciation for 2009  B  Depreciation for 2010  C  Year end Depreciation Adjusting Entry at December 31, 2009  D  Accumulated Depreciation Balance at December 31, 2010  E  Book Value for the Machine at December 31, 2010  Example  Beckworth Company purchased a truck on January 1, 2009, at a cash cost of $10,600  The estimated residual value was $400 and the estimated useful life was 4 years  The company uses straight line depreciation method  On July 1, 2011, the company sold the truck for $1,700 cash  A  What was the amount of accumulated depreciation at December 31, 2010  B  Give the required journal entries on the date of disposal, July 1, 2011  (Assume no 2011 depreciation had yet been recorded)

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Example: Cherokee Company acquired a machine on July 1, 2009, that cost $2,700 and had an estimated residual value of $200 and a useful life

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