On July 1, 2022, Pharoah Company purchased new equipment for $72,000. Its estimated useful life was...

Transcribed Image Text:

On July 1, 2022, Pharoah Company purchased new equipment for $72,000. Its estimated useful life was 7 years with a $9,000 salvage value. On January 1, 2025, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $4,500. (a) Your Answer Correct Answer Your answer is correct. Prepare the journal entry to record depreciation on December 31, 2022. (List debit entry before credit entry. 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.) (b) Account Titles and Explanation Depreciation Expense Accumulated Depreciation-Equipment eTextbook and Media Solution List of Accounts Your Answer Correct Answer Debit 4500 Credit 4500 Attempts: 1 of 1 used Your answer is correct. Prepare the journal entry to record depreciation on December 31, 2023. (List debit entry before credit entry. 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 Depreciation Expense Accumulated Depreciation-Equipment Debit 9000 Credit 9000 On July 1, 2022, Pharoah Company purchased new equipment for $72,000. Its estimated useful life was 7 years with a $9,000 salvage value. On January 1, 2025, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $4,500. (a) Your Answer Correct Answer Your answer is correct. Prepare the journal entry to record depreciation on December 31, 2022. (List debit entry before credit entry. 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.) (b) Account Titles and Explanation Depreciation Expense Accumulated Depreciation-Equipment eTextbook and Media Solution List of Accounts Your Answer Correct Answer Debit 4500 Credit 4500 Attempts: 1 of 1 used Your answer is correct. Prepare the journal entry to record depreciation on December 31, 2023. (List debit entry before credit entry. 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 Depreciation Expense Accumulated Depreciation-Equipment Debit 9000 Credit 9000