Presented below is information related to LeBron James Manufacturing Corporation

Question

Presented below is information related to LeBron James Manufacturing Corporation.

Asset

Cost

Estimated Salvage

Estimated Life (in years)

6

Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.)

Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Plant Assets related account.)

Account Titles and Explanation

Debit

Credit

Prepare the entry to record the sale of asset D for cash of $5,904. It was used for 6 years, and depreciation was entered under the composite method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Plant Assets related account.)

Account Titles and Explanation

Debit

Credit

Asset

Cost

Estimated Salvage

Estimated Life (in years)

A $ 49,815 $ 6,765 10 B 41,328 5,904 9 C 44,280 4,428 9 D 23,370 1,845 7 E 28,905 3,075

6

Explanation / Answer

Journal Entries

Asset Cost (A) Estimated Salvage (B) Cost - Salvage (C ) Estimated Life (Years) (D) Depreciation Expense: (C/D) A 49815 6765 43050 10 4305 B 41328 5904 35424 9 3936 C 44280 4428 39852 9 4428 D 23370 1845 21525 7 3075 E 28905 3075 25830 6 4305 Total 187698 22017 165681 20049

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