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Prepare the necessary correcting entries for the year 2015

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The following data relate to the Machinery account of Eshkol, Inc. at December 31, 2014.;Machinery;A B C D;Original cost $93,380 $103,530 $162,400 $162,400;Year purchased 2009 2010 2011 2013;Useful life 10 years 15,000 hours 15 years 10 years;Salvage value $6,293 $6,090 $10,150 $10,150;Depreciation method Sum-of-the-years'-digits Activity Straight-line Double-declining balance;Accum. depr through 2014* $63,336 $71,456 $30,450 $32,480;*In the year an asset is purchased, Eshkol, Inc. does not record any depreciation expense on the asset.;In the year an asset is retired or traded in, Eshkol, Inc. takes a full year?s depreciation on the asset.;The following transactions occurred during 2015.;(a) On May 5, Machine A was sold for $26,390 cash. The company?s bookkeeper recorded this retirement in the following manner in the cash receipts journal.;Cash (Dr.);26,390;Machinery (Machine A) (Cr.);26,390;(b) On December 31, it was determined that Machine B had been used 4,263 hours during 2015.;(c) On December 31, before computing depreciation expense on Machine C, the management of Eshkol, Inc. decided the useful life remaining from January 1, 2015, was 10 years.;(d) On December 31, it was discovered that a machine purchased in 2014 had been expensed completely in that year. This machine cost $56,840 and has a useful life of 10 years and no salvage value. Management has decided to use the double-declining-balance method for this machine, which can be referred to as ?Machine E.?;Prepare the necessary correcting entries for the year 2015. Record the appropriate depreciation expense on the above-mentioned machines. (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. 45,892. Credit account titles are automatically indented when amount is entered. Do not indent manually.);Additional Requirements

 

Paper#20727 | Written in 18-Jul-2015

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