Presented below is information related to Morrow Manufacturing Corporation.
|
Asset |
Cost |
Estimated Salvage |
Estimated Life (in years) |
|
A |
40,500 |
5,500 |
10 |
|
B |
33,600 |
4,800 |
9 |
|
C |
36,000 |
3,600 |
8 |
|
D |
19,000 |
1,500 |
7 |
|
E |
23,500 |
2,500 |
6 |
a. Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answers to 2 decimal places, i.e. 12.25.)
b. Prepare the adjusting entry necessary at the end of the year to record depreciation for the year.
c. Prepare the entry to record the sale of fixed asset D for cash of $5,000. It was used for 6 years, and depreciation was entered under the composite method. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)