Exercise 11-9

Presented below is information related to Riverbed Manufacturing Corporation.

Asset	Cost	Estimated Salvage	Estimated Life (in years)
A	$44,550	$6,050	10
B	$36,960	5,280	9
C	39,600	3,960	9
D	20,900	1,650	7
E	25,850	2,750	6

1. Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.)

Composite rate ________________%

2. Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Plant Assets related account.)

Account Titles and Explanation	Debit	Credit

Prepare the entry to record the sale of asset D for cash of $5,280. It was used for 6 years, and depreciation was entered under the composite method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Plant Assets related account.)

Account Titles and Explanation	Debit	Credit

List of Accounts

Accumulated Depreciation-Building Accumulated Depreciation-Equipment Accumulated Depreciation-Machinery Accumulated Depreciation-Plant Assets Accumulated Depreciation-Trucks Buildings Cash Coal Mine Depreciation Expense Equipment Gain on Disposal of Machinery Inventory Loss on Disposal of Plant Assets Loss on Impairment Machinery Maintenance and Repairs Expense No Entry Paid-in Capital in Excess of Par - Common Stock Plant Assets Recovery of Loss from Impairment Retained Earnings Trucks