Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine # 5027. Machine # 5027 Component Single metal housing Motor Blade View transaction list *SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $11,200 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 17 years instead of 15 years and that the residual value should be increased to $9,000. Journal entry worksheet < Date of purchase Jan. 12/18 Jan. 12/18 Jan. 12/18 Required: 1. Prepare the entry to record the purchase of the replacement blade. 1 2 Record installation of new blade. Date Jan 07, 2020 Depreciation Method* SL DDB SL Note: Enter debits before credits. Cost $ 42,000 30,000 10,200 $ 82,200 Est. Residual Est. Life $6,000 15 yrs. 2,000 1,000 10 yrs. 5 yrs. General Journal Debit Credit >

Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine # 5027. Machine # 5027 Component Single metal housing Motor Blade View transaction list SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $11,200 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 17 years instead of 15 years and that the residual value should be increased to $9,000. Journal entry worksheet < Date of purchase Jan. 12/18 Jan. 12/18 Jan. 12/18 Required: 1. Prepare the entry to record the purchase of the replacement blade. 1 2 Record installation of new blade. Date Jan 07, 2020 Depreciation Method SL DDB SL Note: Enter debits before credits. Cost $ 42,000 30,000 10,200 $ 82,200 Est. Residual Est. Life $6,000 15 yrs. 2,000 1,000 10 yrs. 5 yrs. General Journal Debit Credit >

Name: Pete's Propellers Company showed the following information in its Pro
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Description: Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine# 5027.Machine # 5027ComponentSingle metal housingMotorBladeView transaction list*SL = Straight-line; DDB = Double-declining-

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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