The following data relate to the Plant Assets account of Kingbird Inc. at December 31, 2016:
Accumulated depreciation through 2016$21,050$26,100
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
On December 31, it was determined that Asset B had been used 3,200 hours during 2017.
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.
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.)
1st entry: The amount of depreciation expense is 3,827. 2nd journal... View the full answer