Exercise 83 Quigley Co. bought a machine on January 1, 2016 for $2,800,000. It h

Question

Exercise 83 Quigley Co. bought a machine on January 1, 2016 for $2,800,000. It had a $240,000 estimated residual value and a 10-year life. An expense account was debited on the purchase date. Quigley uses straight-line depreciation. This was discovered in 2018 Prepare the entries related to the machine for 2018. Ignore taxes. (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. Round answers to 0 decimal places, e.g. 5,250.) Account Titles and Explanation Debit Credit To correct the error) To record depreciation expense) Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Equipment 2800000       Retained Earnings 2288000       Accumulated Depreciation-Equipment 512000 =(2800000-240000)/10*2 Depreciation Expense 256000 =(2800000-240000)/10       Accumulated Depreciation-Equipment 256000

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