On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to have a $10,000 salvage value at the end of its estimated six-year useful life. Straight-line depreciation has been recorded. Before adjusting the accounts for 2019, Moser decided that the useful life of the equipment should be extended by three years and the salvage value decreased to $8,0000. a. Prepare a journal entry to record depreciation expense on the equipment for 2019. Round your answer to the nearest dollar. General Journal Debit Credit Dec. 31 To record depreciation expense. b. What is the book value of the equipment at the end of 2019 (after recording the depreciation expense for 2019)? Book Value at year ended December 31, 2019: $
On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to have a $10,000 salvage value at the end of its estimated six-year useful life. Straight-line depreciation has been recorded. Before adjusting the accounts for 2019, Moser decided that the useful life of the equipment should be extended by three years and the salvage value decreased to $8,0000. a. Prepare a journal entry to record depreciation expense on the equipment for 2019. Round your answer to the nearest dollar. General Journal Debit Credit Dec. 31 To record depreciation expense. b. What is the book value of the equipment at the end of 2019 (after recording the depreciation expense for 2019)? Book Value at year ended December 31, 2019: $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to have a $10,000 salvage value at the end of its estimated six-year useful life. Straight-line depreciation has been recorded. Before adjusting the accounts for 2019, Moser decided that the useful life of the equipment should be extended by three years and the salvage value decreased to $8,000.
a. Prepare a journal entry to record depreciation expense on the equipment for 2019. Round your answer to the nearest dollar.
| General Journal | | |
|-----------------|-----|-----|
| | Debit | Credit |
| Dec. 31 | | |
| | To record depreciation expense. | |
b. What is the book value of the equipment at the end of 2019 (after recording the depreciation expense for 2019)?
Book Value at year ended December 31, 2019: $______
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