Machinery purchased for $64,200 by Sheridan Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,280 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,815 at the end of that time. Assume straight-line depreciation. (a) * Your answer is incorrect. Prepare the entry to correct the prior years' depreciation, if necessary. (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. List debit entry before credit entry.) Account Titles and Explanation Accumulated Depreciation - Machinery Debit 7757.5 Credit

Machinery purchased for $64,200 by Sheridan Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,280 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,815 at the end of that time. Assume straight-line depreciation. (a) * Your answer is incorrect. Prepare the entry to correct the prior years' depreciation, if necessary. (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. List debit entry before credit entry.) Account Titles and Explanation Accumulated Depreciation - Machinery Debit 7757.5 Credit

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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