Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following data relate to the Machinery account of Bramble, Inc. at December 31, 2020. Original cost Year purchased Useful life Salvage value Depreciation method

image text in transcribed
image text in transcribed
image text in transcribed
The following data relate to the Machinery account of Bramble, Inc. at December 31, 2020. Original cost Year purchased Useful life Salvage value Depreciation method Accum. depr through 2020 $52,440 2015 10 years $3,534 Sum-of-the-years-digits $35,568 Machinery B D $58,140 $91,200 $91,200 2016 2017 2019 15.000 hours 15 years 10 years $3,420 $5.700 $5,700 Activity Straight-line Double-declining balance $40,128 $17,100 $18.240 'In the year an asset is purchased, Bramble, Inc does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Bramble, Inc. takes a full year's depreciation on the asset. The following transactions occurred during 2021. (a) On May 5, Machine A was sold for $14,820 cash. The company's bookkeeper recorded this retirement in the following manner in the cash receipts journal. Cash 14,820 Machinery (Machine A) 14,820 SONY (b) On December 31, it was determined that Machine B had been used 2,500 hours during 2021. (c) On December 31, before computing depreciation expense on Machine C, the management of Bramble, Inc. decided the useful life remaining from January 1, 2021, was 10 years. (d) On December 31, it was discovered that a machine purchased in 2020 had been expensed completely in that year. This machine cost $31,920 and has a useful life of 10 years and no salvage value. Management has decided to use the double-declining-balance method for this machine, which can be referred to as "Machine E Prepare the necessary correcting entries for the year 2021. Record the appropriate depreciation expense on the above- mentioned machines. (If no entry is required, select "No entry for the account titles and enter for the amounts. Round intermediate calculations to 3 decimal places, e... 4.589 and final answers to decimal places, eg. 45,892. Credit account titles are automatically indented when amount is entered. Do not indent manually) Debit Credit No. Account Titles and Explanation (a) Depreciation Expense 4446 4446 Accumulated Depreciation Machinery (To record current depreciation) Cash Accumulated Depreciation Machinery Machinery eyplus.com/courses/50522/assignments/5720928 No. Account Titles and Explanation (a) Depreciation Expense Debit Credit 4446 4446 Accumulated Depreciation Machinery (To record current depreciation) Cash Accumulated Depreciation-Machinery Machinery (To properly record the sale) (b) Depreciation Expense 9120 Accumulated Depreciation Machinery 9120 (c) Depreciation Expense 6840 Accumulated Depreciation Machinery 6840 (d) No Entry 0 No Entry 0 (To correct the incorrect expensing of the asset in 2020) Depreciation Expense 6384 Accumulated Depreciation Machinery 6384 candidato SONY

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Edp Auditing A Primer

Authors: Joseph L. Sardinas

1st Edition

0471123056, 978-0471123057

More Books

Students also viewed these Accounting questions

Question

Draw a labelled diagram of the Dicot stem.

Answered: 1 week ago