Question

In: Accounting

heffield Company purchased machinery on January 1, 2020, for $93,600. The machinery is estimated to have...

heffield Company purchased machinery on January 1, 2020, for $93,600. The machinery is estimated to have a salvage value of $9,360 after a useful life of 8 years.

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Compute 2020 depreciation expense using the sum-of-the-years'-digits method.

Depreciation expense

$enter Depreciation expense in dollars

eTextbook and Media

  

  

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Compute 2020 depreciation expense using the sum-of-the-years'-digits method, assuming the machinery was purchased on April 1, 2020. (Round answer to 0 decimal places, e.g. 5,125.)

Depreciation expense

$enter Depreciation expense in dollars rounded to 0 decimal places

Solutions

Expert Solution

Solution:

Requirement: 1 Depreciation expense using the sum-of-the-years'-digits method.

Depreciation Expense = $ 18,720

No. Account Titles and Explanation Debit Credit
1 Depreciation Expense [(93600-9360)*8/36] $    18,720.00
Accumulated Depreciation- Machinery $       18,720.00
(To record depreciation expense)

Requirement: 2 Depreciation expense using the sum-of-the-years'-digits method, assuming the machinery was purchased on April 1, 2020.

Depreciation Expense = $ 14,040

No. Account Titles and Explanation Debit Credit
2 Depreciation Expense [(93600-9360)*8/36*9/12] $    14,040.00
Accumulated Depreciation- Machinery $       14,040.00
(To record depreciation expense)

Notes:

1) Under Requirement: 2, depreciation is calculated for 9 months because it is purchased in april.


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