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* Problem 11 - 6 [ Your answer is partially correct . Try again . The Following data relate to the Plant Assets account of Kingbird Inc . at December...

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The following data relate to the Plant Assets account of Kingbird Inc. at December 31, 2016:


ABCDOriginal cost

$46,900$51,000

$80,000

$73,000

Year purchased

2011201220132014Useful life

10years18,000

hours15years10

yearsResidual value

$4,800

$4,200$5,000$4,700

Depreciation method

straight-line

activity

straight-line

double-declining

Accumulated depreciation through 2016$21,050$26,100

$15,000$26,280


Note: In the year an asset is purchased, Kingbird does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Kingbird takes a full year's depreciation on the asset.


The following transactions occurred during 2017:


1.On May 5, Asset A was sold for $17,050 cash. The company's bookkeeper recorded this retirement as follows:

Account Titles and Explanation

Debit

Credit

Cash

17,050

   Asset A

17,050


2.

On December 31, it was determined that Asset B had been used 3,200 hours during 2017.

3.

On December 31, before calculating depreciation expense on Asset C, Kingbird 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 2016 had been expensed completely in that year. The asset cost $33,000, 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.


adjusting journal entries required at December 31, 2017, as well as any entries to record depreciation for 2017. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

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* Problem 11 - 6
[ Your answer is partially correct . Try again .
The Following data relate to the Plant Assets account of Kingbird Inc . at December 31 , 2016 :
B
C
D
Original cast
546, 900
$51 , 000
$80 , 000
$73, 000
Year purchased
201 1
2012
2013
2014
Useful life*
10 years
18 , 000 hours
15 years
10 years
Residual value*
$ 4, 800
$ 4 , 200
$ 5, 000
$ 4, 700
Depreciation method
Straight - line
activity
straight - line
double - declining
Accumulated depreciation through 2015
$21 , 050
$ 25 , 100
$15 , 000
$26 , 280
Note : In the year an asset is purchased , Kingbird does not record any depreciation expense on the asset . In the year an asset is retired or traded in , Kingbird takes a full year's depreciation on the asset .
The Following transactions occurred during 2017 :
1 . (
On May 5 , Asset A was sold For $ 17, 050 cash . The company's bookkeeper recorded this retirement as Follows :"
Account Titles and Explanation Debit Credit
Cash
17 , 050
Asset A
17, 050
2 .
On December 31 , it was determined that Asset & had been used 3 , 2010 hours during 2017 .
3 .
On December 31 , before calculating depreciation expense on Asset [ , Kingbird management decided that Asset I'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 2016 had been expensed completely in that year . The asset cost $ 33 , 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 .
indent manually . If no entry is required , select " NO Entry " For the account titles and enter ! for the amounts . Round answers to O decimal places , e . g. 5, 275.)

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Account Titles and Explanation
Debit
Credit
[Depreciation EXPENSE
4592
TAccumulated Depreciation - ASSEt``
4592
( To record depreciation on ASSET A )
|Accumulated Depreciation - Asset!`
\25642
[LOSE on Disposal OF ASSETS
\4208
|ASSET A`
129850
[ To record the disposal of Asset A)
THEpreciation EXPENSE*
18320
\Accumulated Depreciation - ASSEt {`
18 3 20
( To record depreciation on Asset B )
TDepreciation EXPENSE*
TEODO
TAccumulated Depreciation - Asset [
( To record depreciation on Asset TASSET E
13 3000
TRetained Earnings
123000
[ To record the cost of ASSET E']
Depreciation EXPENSE
16500!
I
\Accumulated Depreciation - ASSet E|
L`
TOGOO
[ TO record the depreciation on Asset E]
[Depreciation EXPENSE*
|Accumulated Depreciation - Asset [
" To record depreciation on Asset D )

Top Answer

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