E11.9 (LO1,2) (Component Depreciation) Morrow Manufacturing has equipment that is comprised of five components (amounts in thousands). Component Cost Estimated Residual Estimated Life (in years) A ¥40,500 5,500 10 B 33,600 4,800 9 C 36,000 3,600 8 D 19,000 1,500 7 E 23,500 2,500 6 Instructions a. Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. Assume that Morrow uses straight-line depreciation. b. Prepare the entry to record the replacement of component B for cash of ¥40,000. It was used for 6 years.
E11.9 (LO1,2) (Component
Component Cost Estimated Residual Estimated Life (in years)
A ¥40,500 5,500 10
B 33,600 4,800 9
C 36,000 3,600 8
D 19,000 1,500 7
E 23,500 2,500 6
Instructions
a. Prepare the
b. Prepare the entry to record the replacement of component B for cash of ¥40,000. It was used for 6 years.
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