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allochka39001 [22]
3 years ago
13

Machinery purchased for $63,000 by Concord Co. in 2016 was originally estimated to have a life of 8 years with a salvage value o

f $4,200 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $4,725 at the end of that time. Assume straight-line depreciation.
Required:
1. Prepare the entry to correct the prior years' depreciation, if necessary.
2. Prepare the entry to record depreciation for 2021.
Business
1 answer:
Inessa [10]3 years ago
7 0

Answer:

Correction entry.

1.Credit accumulated depreciation $7612.50

Debit Asset/machinery               $7612.50

2. Credit Asset / Machinery $5827.5

Debit Accumulated depreciation $5827.50

Explanation:

Cost of machine = $63000

Useful life = 8yrs

Salvage value = $ 4200

Depreciable amount on this basis $(63000-4200)=58800

Annual depreciation =58800/8 =7350

5yrs depreciation = 7350 *5=$36750.

Revised Useful life - 10yrs

Revised Salvage value = $4725

Revised depreciable amount = $58275

Annual depreciation = 58275/10 =$5,827.50

5yrs depreciation = $29,137.50

Difference in accumulated depreciation = $36750-$29137.5

$7612.50

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The principle of diversification teaches us that using two securities it is always possible to find a portfolio with no short po
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C. Less than the variance of each asset, except when the two assets are perfectly positively correlated.

Explanation:

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2 years ago
Carla was unhappy with her haircut. The next time she wanted a haircut, she went to a different hairstylist who Carla thought wa
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Answer:

B. Switching

Explanation:

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8 0
3 years ago
Polk Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are i
wariber [46]

Answer and Explanation:

The computation is shown below:

a.

1. Calculation of the equivalent units

<u>Particulars         Physical units   %     Material   %      Conversion cost</u>

Units transferred

out                          900             100%    900     100%     900

Ending

work in process     600            100%     600     40%       240

Equivalent

units                                                        1,500                  1,140

2. Cost per equivalent unit is

Particulars         Material      Conversion cost

Beginning

inventory           $750               $600

Cost during

period                $2,400            $2,820

Total cost          $3,150             $3,420

Divided by

Equivalent

units                   $1,500            $1,140

Cost per

equivalent unit    $2.1              $3

3. Transferred out cost is

= (3 + 2.1) × 900

= $4,590

And, the ending work in process cost is

= (600 ×$2.1) + (240 × $3)

= $1,960

2. Now the preparation of the production report is presented below:

Beginning work in process       $1,350

Cost during period                    $5,220

Total cost accounted for           $6,570

Transferred out cost                   $4,590

Ending work in process              $1,960

Total cost accounted as             $6,570

3 0
3 years ago
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