Nasoff Company operates a small manufacturing facility as a supplement to its re
ID: 2459579 • Letter: N
Question
Nasoff Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2011, an asset account for the company showed the following balances:
The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $15,500 estimated residual value. The annual accounting period ends on December 31.
Prepare the adjusting entry that should be made by Nasoff Company at the end of 2011 for depreciation of the manufacturing equipment, assuming no change in the original estimated life or residual value. (Omit the "$" sign in your response.)
Nasoff Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2011, an asset account for the company showed the following balances:
Explanation / Answer
Depreciation expenses a/c Dr. 10200
To Accumulated depreciation, equipment 10200
Cost of equioment
122000
Total life of equipment
15
Residual value
15500
Per year depreciation
7100
(122000-15500)/15
Accumulated depreciation
71000
Remaining life of equipment as on 1 jan 2011
5
15-(71000/7100)
Majour improvement in 2011
15500
Life in years
5
Annual depreciation
3100
Depreciation on equipment
7100
Depreciation on equipment improvement
3100
Total depreciation in 2011
10200
Cost of equioment
122000
Total life of equipment
15
Residual value
15500
Per year depreciation
7100
(122000-15500)/15
Accumulated depreciation
71000
Remaining life of equipment as on 1 jan 2011
5
15-(71000/7100)
Majour improvement in 2011
15500
Life in years
5
Annual depreciation
3100
Depreciation on equipment
7100
Depreciation on equipment improvement
3100
Total depreciation in 2011
10200
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