The following data relate to the Plant Assets account of Marin Inc. at December 31, 2019:...

  

 

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The following data relate to the Plant Assets account of Marin Inc. at December 31, 2019: Original cost Year purchased Useful life Residual value Depreciation method Accumulated depreciation through 2019 Asset A $46,600 2014 2. 3. 10 years Account Titles and Explanation Debit Credit Cash 17,050 17,050 4. $4,500 straight- line $21,050 B $45,800 2015 12,000 hours $5,000 activity $34,100 C $70,750 2016 15 years $7,000 straight- line $12,750 Note: In the year an asset is purchased, Marin does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Marin takes a full year s depreciation on the asset. The following transactions occurred during 2020: 1. On May 5, Asset A was sold for $17,050 cash. The company s bookkeeper recorded this retirement as follows: D $73,000 2017 10 years $4,700 double- declining $26,280 On December 31, It was determined that Asset B had been used 3.900 hours during 2020. On December 31, before calculating depreciation expense on Asset C, Marin management decided that Asset C s remaining useful life should be nine years as of year end. On December 31, it was discovered that a piece of equipment purchased in 2019 had been expensed completely in that year. The asset cost $31,000, had a useful life of 10 years when it was acquired, and had no residual value. Management has decided to use the double-declining-balance method for this asset, which can be referred to as Asset E. Ignore income taxes. Prepare any necessary adjusting journal entries required at December 31, 2020, as well as any entries to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter O for the amounts) Account Titles and Explanation (To record depreciation on Asset A) (To record disposal of Asset A) (To record depreciation on Asset B) (To record depreciation on Asset C) (To record cost of Asset E) (To record depreciation on Asset E) (To record depreciation on Asset D) > < Debit Credit The following data relate to the Plant Assets account of Marin Inc. at December 31, 2019: Original cost Year purchased Useful life Residual value Depreciation method Accumulated depreciation through 2019 Asset A $46,600 2014 2. 3. 10 years Account Titles and Explanation Debit Credit Cash 17,050 17,050 4. $4,500 straight- line $21,050 B $45,800 2015 12,000 hours $5,000 activity $34,100 C $70,750 2016 15 years $7,000 straight- line $12,750 Note: In the year an asset is purchased, Marin does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Marin takes a full year s depreciation on the asset. The following transactions occurred during 2020: 1. On May 5, Asset A was sold for $17,050 cash. The company s bookkeeper recorded this retirement as follows: D $73,000 2017 10 years $4,700 double- declining $26,280 On December 31, It was determined that Asset B had been used 3.900 hours during 2020. On December 31, before calculating depreciation expense on Asset C, Marin management decided that Asset C s remaining useful life should be nine years as of year end. On December 31, it was discovered that a piece of equipment purchased in 2019 had been expensed completely in that year. The asset cost $31,000, had a useful life of 10 years when it was acquired, and had no residual value. Management has decided to use the double-declining-balance method for this asset, which can be referred to as Asset E. Ignore income taxes. Prepare any necessary adjusting journal entries required at December 31, 2020, as well as any entries to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter O for the amounts) Account Titles and Explanation (To record depreciation on Asset A) (To record disposal of Asset A) (To record depreciation on Asset B) (To record depreciation on Asset C) (To record cost of Asset E) (To record depreciation on Asset E) (To record depreciation on Asset D) > < Debit Credit

Answer rating: 100% (QA)

Account titles and explanation Debit Credit Depreciation expenseAsset A 46600450010 4210 Accumulated ... View the full answer