E11-9 Presented below is information related to LeBron James Manufacturing Corporation.
Question # 00079203
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Updated on: 07/02/2015 12:14 PM Due on: 07/03/2015
E11-9Presented below is information related to LeBron James Manufacturing Corporation.
|
Asset |
Cost |
Estimated Salvage |
Estimated Life (in years) | |||||||
|
A |
$ 40,500 |
$ 5,500 |
10 | |||||||
|
B |
33,600 |
4,800 |
9 | |||||||
|
C |
36,000 |
3,600 |
9 | |||||||
|
D |
19,000 |
1,500 |
7 | |||||||
|
E |
23,500 |
2,500 |
6 | |||||||
Compute the rate of depreciation per year to be applied to the plant assets under the composite method.
Composite rate
Prepare the adjusting entry necessary at the end of the year to record depreciation for the year.
|
Account Titles and Explanation |
Debit |
Credit |
Prepare the entry to record the sale of asset D for cash of $4,800. It was used for 6 years, and depreciation was entered under the composite method.
|
Account Titles and Explanation |
Debit |
Credit |
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Solution: E11-9 Presented below is information related to LeBron James Manufacturing Corporation.