On July $1,2022,$ Cullumber Company purchased new equipment for $$67,200.$ Its estimated useful life was $7$ years with a $$8,400$ salvage value. On January $1,2025,$ the company estimated that the equipment's remaining useful life was $10$ years, with a revised salvage value of $$4,200.$

$($a$)$

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Your answer is correct.

Prepare the journal entry to record depreciation on December $31,2022.($List debit entry before credit entry. Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Depreclation Expense

Accumulated Depreclatlon$-$Equlpment

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Solution

List of Accounts

Attempts: $3$ of $3$ used

$($b$)$

Your answer is partially correct.

Prepare the journal entry to record depreciation on December $31,2023.($List debit entry before credit entry Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts$)$

Account Titles and Explanation

Debit

Credit

Accumulated Depreclatlon$-$Equipment