Polly Manufacturing Company acquired equipment on January 1, 2022, for $527,000. Estimated useful life of the equipment was eight years and the estimated residual value was $15,000. It was determined on January 1, 2026, that the total estimated useful life needs to be revised to 10 total years. Residual value remains unchanged. The company uses the straight-line method of depreciation. What is the journal entry for the depreciation expense for 2026? (Round any intermediate calculations to two decimal places and your final answer to the nearest dollar.) 42,667 O Accumulated Depreciation-Equipment Depreciation Expense-Equipment O Depreciation Expense-Equipment Accumulated Depreciation- Equipment O Depreciation Expense-Equipment Accumulated Depreciation- Equipment O Accumulated Depreciation-Equipment Depreciation Expense-Equipment OOO 64,000 42,667 64,000 42,667 64,000 42,667 64,000
Polly Manufacturing Company acquired equipment on January 1, 2022, for $527,000. Estimated useful life of the equipment was eight years and the estimated residual value was $15,000. It was determined on January 1, 2026, that the total estimated useful life needs to be revised to 10 total years. Residual value remains unchanged. The company uses the straight-line method of depreciation. What is the journal entry for the depreciation expense for 2026? (Round any intermediate calculations to two decimal places and your final answer to the nearest dollar.) 42,667 O Accumulated Depreciation-Equipment Depreciation Expense-Equipment O Depreciation Expense-Equipment Accumulated Depreciation- Equipment O Depreciation Expense-Equipment Accumulated Depreciation- Equipment O Accumulated Depreciation-Equipment Depreciation Expense-Equipment OOO 64,000 42,667 64,000 42,667 64,000 42,667 64,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Polly Manufacturing Company acquired equipment on January 1, 2022, for $527,000. Estimated useful life of the equipment was eight years and the estimated
residual value was $15,000. It was determined on January 1, 2026, that the total estimated useful life needs to be revised to 10 total years. Residual value
remains unchanged. The company uses the straight-line method of depreciation. What is the journal entry for the depreciation expense for 2026? (Round any
intermediate calculations to two decimal places and your final answer to the nearest dollar.)
42,667
Accumulated Depreciation Equipment
Depreciation Expense-Equipment
Depreciation Expense-Equipment
Accumulated Depreciation Equipment
Depreciation Expense-Equipment
Accumulated Depreciation Equipment
Accumulated Depreciation Equipment
Depreciation Expense-Equipment
64,000
42,667
64,000
42,667
64,000
42,667
64,000
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