On July 1, 2022, Cullumber Company purchased new equipment for $102,400. Its estimated useful life was 7 years with a $12,80 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) Prepare the journal entry to record depreciation on December 31, 2022. (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 O for the amounts) Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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)
Prepare the journal entry to record depreciation on December 31, 2022. (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 o for the amounts)
Account Titles and Explanation
Debit
Credit
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) Prepare the journal entry to record depreciation on December 31, 2022. (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 o for the amounts) Account Titles and Explanation Debit Credit
Prepare the journal entry to record depreciation on December 31, 2022. (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 an
enter O for the amounts)
Account Titles and Explanation
eTextbook and Media
List of Accounts
Save for Later
Debit
Credit
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Submit Answer
Transcribed Image Text:Prepare the journal entry to record depreciation on December 31, 2022. (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 an enter O for the amounts) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 3 used 4 Submit Answer
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