Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following data relate to the Plant Assets account of Windsor Inc. at December 31, 2022: Original cost Year purchased Useful life Residual value
The following data relate to the Plant Assets account of Windsor Inc. at December 31, 2022: Original cost Year purchased Useful life Residual value Depreciation method Accumulated depreciation. through 2022 A B C D $46,100 $44,000 $81,000 $73,000 2017 2018 2019 2020 10 years 14,500 hours 15 years 10 years $4,000 $4,850 $6,000 $4,700 straight- straight- double- activity line line declining $21,050 $27,100 $15,000 $26,280 Note: In the year an asset is purchased, Windsor does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Windsor takes a full year's depreciation on the asset. The following transactions occurred during 2023: 1. On May 5, Asset A was sold for $16,800 cash. The company's bookkeeper recorded this retirement as follows: Cash Asset A 16,800 16,800 2. 3. On December 31, it was determined that Asset B had been used 3,200 hours during 2023. On December 31, before calculating depreciation expense on Asset C, Windsor's management decided that Asset C's remaining useful life should be nine years as of year end. 4. On December 31, it was discovered that a piece of equipment purchased in 2022 had been expensed completely in that year. The asset cost $30,000, had a useful life of 10 years when it was acquired, and had no residual value. Management has decided to use the double-declining-balance method for this asset, which can be referred to as "Asset E." Ignore income taxes. (a) Prepare any necessary adjusting journal entries required at December 31, 2023, as well as any entries to record depreciation for 2023. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries. Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, eg. 5,275) (a) Prepare any necessary adjusting journal entries required at December 31, 2023, as well as any entries to record depreciation for 2023. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries. Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation (To record depreciation on Asset A) (To record disposal of Asset A) (To record depreciation on Asset B) Debit Credit (To record depreciation on Asset B) (To record depreciation on Asset C) (To record cost of Asset E) (To record depreciation on Asset E) (To record depreciation on Asset D)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started