Exercise 83 Quigley Co bought a machine on January 1 2013 fo

Exercise 83

Quigley Co. bought a machine on January 1, 2013 for $1,402,100. It had a $122,800 estimated residual value and a 10-year life. An expense account was debited on the purchase date. Quigley uses straight-line depreciation. This was discovered in 2015.

Prepare the entries related to the machine for 2015. (If no entry is required, select \"No entry\" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

Account Titles and Explanation

Debit

Credit

(To correct the error.)

Account Titles and Explanation Debit Credit (To correct the error.)

Solution

Account titles and explanation Debit Credit Equipment $1,402,100 Retained Earnings $1,146,240 Accumulated Depreciation-Equipment $255,860 Depreciation Expense $127,930 Accumulated Depreciation-Equipment $127,930