Awar d 15outof 1500points swindall indus tries us es s

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Unformatted text preview: al ex penditure Explanation: e. Rev enue ex penditure (too s mall in amount to c apitaliz e regardles s of length of us eful life) 2. awar d: 15 out of 15.00 points Swindall Indus tries us es s traight­line deprec iation on all of its deprec iable as s ets . The c ompany rec ords annual deprec iation ex pens e at the end of eac h c alendar y ear. On J anuary 11, 2007, the c ompany purc has ed a mac hine c os ting $90,000. The mac hine's us eful life was es timated to be 12 y ears with a res idual v alue of $18,000. Deprec iation for partial y ears is rec orded to the neares t full month. In 2011, after almos t fiv e y ears of ex perienc e with the mac hine, management dec ided to rev is e its es timated life from 12 y ears to 20 y ears . No c hange was made in the es timated res idual v alue. The rev is ed es timate of the us eful life was dec ided prior to rec ording annual deprec iation ex pens e for the y ear ended Dec ember 31, 2011. a. Prepare journal entries in c hronologic al order for the abov e ev ents , beginning with the purc has e of the mac hinery on J anuary 11, 2007. Show s eparately the rec ording of deprec iation ex pens e in 2007 through 2011. (Om it the "$" sign in your response.) e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w 1/6 11/18/13 Assignme nt Pr int Vie w Date 2007 J an. 11 Dec . 31 2008­ 2010 Dec . 31 2011 Dec . 31 General J ournal Machinery Cash Depreciation expense: Machinery Accum ulated depreciation: Machinery Debit Credit 90,000 6,000 90,000 6,000 Depreciation expense: Machinery Accum ulated depreciation: Machinery Depreciation expense: Machinery Accum ulated depreciation: Machinery 6,000 3,000 6,000 3,000 Learning Objective: 09­03 Compute depreciation by the straight­line and declining­balance methods. Worksheet Swindall Indus tries us es s traight­line deprec iation on all of its deprec iable as s ets . The c ompany rec ords annual deprec iation ex pens e at the end of eac h c alendar y ear. On J anuary 11, 2007, the c ompany purc has ed a mac hine c os ting $90,000. The mac hine's us eful life was es timated to be 12 y ears with a res idual v alue of $18,000. Deprec iation for partial y ears is rec orded to the neares t full month. In 2011, after almos t fiv e y ears of ex per...
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