$56,000, and were depreciated using straight-line depreciation. Complete the requirements below for mkery. he ovens at the end of the second year. (If no entry is required for a transaction/event, select "No Journal first account field.) y worksheet of ovens. efore credits General Journal < Prev Debit 8 Credit of 9 Next >
$56,000, and were depreciated using straight-line depreciation. Complete the requirements below for mkery. he ovens at the end of the second year. (If no entry is required for a transaction/event, select "No Journal first account field.) y worksheet of ovens. efore credits General Journal < Prev Debit 8 Credit of 9 Next >
Chapter1: Financial Statements And Business Decisions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Required information
(The following information applies to the questions displayed below.]
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest
Bakery for $660,000. The ovens originally cost $866,000, had an estimated service life of 10 years, had an estimated
residual value of $56,000, and were depreciated using straight-line depreciation. Complete the requirements below for
New Morning Bakery.
4. Record the sale of the ovens at the end of the second year. (If no entry is required for a transaction/event, select "No Journal
Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
Record the sale of ovens.
Note: Enter debits before credits.
Transaction
General Journal
< Prev
Debit
3₂
8
Credit
of 9
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2335b687-e0a0-43f3-b682-06b06f44d811%2F82e1363f-f3e7-4b53-b700-62783cb94e7d%2Fd0qzagl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
(The following information applies to the questions displayed below.]
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest
Bakery for $660,000. The ovens originally cost $866,000, had an estimated service life of 10 years, had an estimated
residual value of $56,000, and were depreciated using straight-line depreciation. Complete the requirements below for
New Morning Bakery.
4. Record the sale of the ovens at the end of the second year. (If no entry is required for a transaction/event, select "No Journal
Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
Record the sale of ovens.
Note: Enter debits before credits.
Transaction
General Journal
< Prev
Debit
3₂
8
Credit
of 9
Next >
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