journal entries for revising estimate of life give the journal 253177

Journal entries for revising estimate of life. Give the journal entries for the following selected transactions of Florida Manufacturing Corporation. The company uses the straight-line method of calculating depreciation and reports on a December 31 year end.

a. The firm purchases a cutting machine on November 1, 2008, for $180,000. It estimates that the machine will have a useful life of 12 years and a salvage value of $7,200 at the end of that time. Give the journal entry for the depreciation at December 31, 2008.

b. Record the depreciation for the year ending December 31, 2009.

c. In August 2014 the firm estimates that the machine will probably have a total useful life of 14 years and a $3,840 salvage value. Record the depreciation for the year ending December 31, 2014.

d. The firm sells the machine for $40,000 on March 31, 2019. Record the entries of that date, assuming that the firm records depredation as indicated in part c.

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