Mickey Mouse Co. purchased equipment on January 1, 2019, at a cost of $50,000. Depreciation for 2019 and 2020 was based on an estimated 10-year life and $5,000 estimated residual value. The company uses the straight-line method of depreciation and records any partial-year depreciation based on the number of months the asset is in service. In 2021, Mickey Mouse Co. revised its depreciation estimate and now believes the equipment will have a total service life of 7 years & a residual value of $4,000. Required: Calculate the depreciation for 2021 on the worksheet, then prepare the journal entry to record the 2021 depreciation, in good form. >>>To indent an account in this general journal, use 3 periods before the account. Example: ...Buildings (1 point reduction for not indenting appropriately.)<<<<<
Mickey Mouse Co. purchased equipment on January 1, 2019, at a cost of $50,000. Depreciation for 2019 and 2020 was based on an estimated 10-year life and $5,000 estimated residual value. The company uses the straight-line method of depreciation and records any partial-year depreciation based on the number of months the asset is in service. In 2021, Mickey Mouse Co. revised its depreciation estimate and now believes the equipment will have a total service life of 7 years & a residual value of $4,000. Required: Calculate the depreciation for 2021 on the worksheet, then prepare the journal entry to record the 2021 depreciation, in good form. >>>To indent an account in this general journal, use 3 periods before the account. Example: ...Buildings (1 point reduction for not indenting appropriately.)<<<<<
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mickey Mouse Co. purchased equipment on January 1, 2019, at a cost of $50,000. Depreciation for 2019 and 2020 was based on an
estimated 10-year life and $5,000 estimated residual value. The company uses the straight-line method of depreciation and records
any partial-year depreciation based on the number of months the asset is in service.
In 2021, Mickey Mouse Co. revised its depreciation estimate and now believes the equipment will have a total service life of 7 years &
a residual value of $4,000.
Required:
Calculate the depreciation for 2021 on the worksheet, then prepare the journal entry to record the 2021 depreciation, in good form.
>>>To indent an account in this general journal, use 3 periods before the account. Example: ...Buildings (1 point reduction for not
indenting appropriately.)<<<<
Calculation Journal Entry
Requirement
Calcuate the depreciation expense for 2021.
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