The following transactions occurred during 2021 (a) On May 5, Machine A was sold for $15,340 cash The companys bookkeeper recorded this retirement in the following manner in the cash receipts journal Cash 15,340 Machinery (Machine A) 15,340 (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 Wildhorse, 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 $33,040 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 Machinery A B C D Original cost $54,280 $60,180 $94,400 $94,400 Year purchased 2015 2016 2017 2019 Useful life 10 years 15,000 hours 15 years 10 years Salvage value $3,658 $3,540 $5,900 $5,900 Depreciation method Sum of the years' digits Activity Straight line Double declining balance Accum depr through 2020 $36,816 $41,536 $17,700 $18,880 In the year an asset is purchased, Wildhorse, Inc does not record any depreciation expense on the asset In the year an asset is retired or traded in, Wildhorse, Inc takes a full years depreciation on the asset 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 0 for the amounts Round intermediate calculations to 3 decimal places, e g 4 589 and final answers to 0 decimal places, e g 45,892 Credit account titles are automatically indented when amount is entered Do not indent manually ) No Account Titles and Explanation Debit Credit (a) (To record current depreciation) (To properly record the sale) (b) (c) (d) (To correct the incorrect expensing of the asset in 2020) (To record depreciation)

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The following transactions occurred during 2021. (a) On May 5, Machine A was sold for $15,340 cash. The companys bookkeeper recorded this retirement in the

The following transactions occurred during 2021.

(a)

On May 5, Machine A was sold for $15,340 cash. The company’s bookkeeper recorded this retirement in the following manner in the cash receipts journal.

	Cash	15,340
	Machinery (Machine A)		15,340

(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 Wildhorse, 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 $33,040 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.”

	Machinery
	A	B	C	D
Original cost	$54,280	$60,180	$94,400	$94,400
Year purchased	2015	2016	2017	2019
Useful life	10 years	15,000 hours	15 years	10 years
Salvage value	$3,658	$3,540	$5,900	$5,900
Depreciation method	Sum-of-the-years'-digits	Activity	Straight-line	Double-declining balance
Accum. depr through 2020*	$36,816	$41,536	$17,700	$18,880

*In the year an asset is purchased, Wildhorse, Inc. does not record any depreciation expense on the asset.

In the year an asset is retired or traded in, Wildhorse, Inc. takes a full year’s depreciation on the asset.

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 0 for the amounts. Round intermediate calculations to 3 decimal places, e.g. 4.589 and final answers to 0 decimal places, e.g. 45,892. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(a)

	(To record current depreciation)



	(To properly record the sale)
(b)

(c)

(d)

	(To correct the incorrect expensing of the asset in 2020)


	(To record depreciation)