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Gwynedd Industries uses straight - line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar
Gwynedd Industries uses straightline depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January the company purchased a machine costing $ and it has an estimated useful life of years and an estimated residual value of $ Depreciation for partial years is rounded to the nearest full month.
In management decided to revise its estimated life from years to years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recording annual depreciation expense for the year ended December
Instructions:
a Prepare journal entries in chronological order for the given events, beginning with the purchase of machinery on January Record depreciation expense separately for each year through separate entries for each years depreciation
Hint: record the purchase and annual depreciation for each year
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