On July 1, 2022, Cullumber Company purchased new equipment for $102,400. Its estimated useful life was 7 years with a $12,800 salvage value. On January 1, 2025, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $6,400. (a) (b) Prepare the journal entry to record depreciation on December 31, 2023. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit S
On July 1, 2022, Cullumber Company purchased new equipment for $102,400. Its estimated useful life was 7 years with a $12,800 salvage value. On January 1, 2025, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $6,400. (a) (b) Prepare the journal entry to record depreciation on December 31, 2023. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit S
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2022, Cullumber Company purchased new equipment for $102,400. Its estimated useful life was 7 years with a $12,800
salvage value. On January 1, 2025, the company estimated that the equipment's remaining useful life was 10 years, with a revised
salvage value of $6,400.
(a)
(b)
Prepare the journal entry to record depreciation on December 31, 2023. (List debit entry before credit entry. Credit account
titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No
Entry for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
S
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