Presented below is information related to Vaughn Manufacturing Corporation.AssetCostEstimated SalvageEstimated Life (in years)A.$54,700$6,5001033,2005,3009.36,8004,4009.18,2001,400723,9002,9006.(a)Your answer has been saved. See score details after the due date.Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2decimal place, e.g. 4.83%.)Composite rate10.44eTextbook and MediaB. Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (If no entry is required, select "Noentry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do notindent manually. Use Plant Assets related account.)Account Titles and ExplanationDebitCredit

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Description: Presented below is information related to Vaughn Manufacturing Corporation.AssetCostEstimated SalvageEstimated Life (in years)A.$54,700$6,5001033,2005,3009.36,8004,4009.18,2001,400723,9002,9006.(a)Your answer has been saved. See score details after

>Long term assets are generally depreciable. >This means that their cost is expensed over their useful life as Depreciation expense. >This depreciation can be computed and recorded for individual asset or it can computed and recorded for a group of assets. >When it is recorded for group of asset, it is termed as 'Composite Depreciation' Asset Cost Estimated Salvage Depreciable base Estimated life Depreciation per year [A] [B] [C = A - B] [D] [E = C/D] A $54,700 $6,500 $48,200 10 $4,820 B $33,200 $5,300 $27,900 9 $3,100 C $36,800 $4,400 $32,400 9 $3,600 D $18,200 $1,400 $16,800 7 $2,400 E $23,900 $2,900 $21,000 6 $3,500 $166,800 $20,500 $146,300 $17,420-[a] A Total Depreciation per year $17,420 B Total Cost of Group assets $166,800 C = (A/B) x 100 Composite rate 10.44% -[b] Accounts title Debit Credit Depreciation expense $17,420 Accumulated Depreciation $17,420 (to record depreciation for the period)

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Presented below is information related to Vaughn Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in years) A $54,700 $6,500 10 33,200 5,300 6. 36,800 4,400 9. 18,200 1,400 7 23,900 2,900 6. (a) Your answer has been saved. See score details after the due date, Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round an decimal place, e.g. 4.83%.) Composite rate 10.44

Presented below is information related to Vaughn Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in years) A $54,700 $6,500 10 33,200 5,300 6. 36,800 4,400 9. 18,200 1,400 7 23,900 2,900 6. (a) Your answer has been saved. See score details after the due date, Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round an decimal place, e.g. 4.83%.) Composite rate 10.44

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

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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Presented below is information related to Vaughn Manufacturing Corporation.
Asset
Cost
Estimated Salvage
Estimated Life (in years)
A.
$54,700
$6,500
10
33,200
5,300
9.
36,800
4,400
9.
18,200
1,400
7
23,900
2,900
6.
(a)
Your answer has been saved. See score details after the due date.
Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2
decimal place, e.g. 4.83%.)
Composite rate
10.44
eTextbook and Media
B.

Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (If no entry is required, select "No
entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not
indent manually. Use Plant Assets related account.)
Account Titles and Explanation
Debit
Credit

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