Journal entry worksheet Solution 1 Cost 4300000 Old annual

Journal entry worksheet

Solution

1 Cost $     43,000.00 Old annual depreciation $        6,600.00 [($43000-10000)/5years] Depreciation to date ($6600*2 years) $     13,200.00 [Dep for year 2016 & 2017] Book value [$43000-13200] $     29,800.00 Revised residual value $        1,600.00 Revised depreciable base [$29800-$1600] $     28,200.00 Estimated remaining life (10 years - 2 years) 8 years New annual depreciation [$28200/8years] $        3,525.00 JOURNAL ENTRY Dec-18 Depreciation Expense $        3,525.00 Accumulated Depreciation $ 3,525.00 2 Cost $     43,000.00 Less: Previous dep Dep in 2016 [($43000-$10000)*5/15 $     11,000.00 Dep in 2017 [($43000-$10000)*4/15 $        8,800.00 Book value [$43000-$11000-$8800] $     23,200.00 Revised residual value $        1,600.00 Revised depreciable base [$23200-$1600] $     21,600.00 Estimated remaining life (10 years - 2 years Used) 8 years/36 New annual depreciation for 2018 [$21600*8/36] $        4,800.00 JOURNAL ENTRY Dec-18 Depreciation Expense $        4,800.00 Accumulated Depreciation $ 4,800.00 Note: Sum of years 1 to 5 = 15 Sum of years 1 to 8 = 36