Exercise 9-08 On July 1, 2019, Sheridan Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $12,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (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 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Prepare the journal entry to record depreciation on December 31, 2020. (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 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ Prepare the journal entry to record depreciation on December 31, 2022. (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 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Compute the balance in Accumulated Depreciation—Equipment for this equipment after depreciation expense has been recorded on December 31, 2022. Accumulated Depreciation—Equipment $ Problem 9-03A Ivanhoe Company had the following assets on January 1, 2022. Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $73,000 Jan. 1, 2012 10 $ 0 Forklift 32,000 Jan. 1, 2019 5 0 Truck 38,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,200. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an ac ...

1. Exercise 9-08
On July 1, 2019, Sheridan Company purchased new equipment
for $80,000. Its estimated useful life was 8 years with a $12,000
salvage value. On December 31, 2022, the company estimated
that the equipment’s remaining useful life was 10 years, with a
revised salvage value of $5,000.
Prepare the journal entry to record depreciation on December
31, 2019. (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
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount

2. Prepare the journal entry to record depreciation on December
31, 2020. (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
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount

3. Compute the revised annual depreciation on December 31, 2022.
Revised annual depreciation
$
Prepare the journal entry to record depreciation on December
31, 2022. (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
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount

4. Compute the balance in Accumulated Depreciation—Equipment
for this equipment after depreciation expense has been recorded
on December 31, 2022.
Accumulated Depreciation—Equipment
$
Problem 9-03A
Ivanhoe Company had the following assets on January 1, 2022.
Item
Cost
Purchase Date
Useful Life
(in years)
Salvage Value

5. Machinery
$73,000
Jan. 1, 2012
10
$ 0
Forklift
32,000
Jan. 1, 2019
5
0
Truck
38,400
Jan. 1, 2017
8
3,000
During 2022, each of the assets was removed from service. The
machinery was retired on January 1. The forklift was sold on
June 30 for $12,200. The truck was discarded on December 31.
Journalize all entries required on the above dates, including
entries to update depreciation, where applicable, on disposed
assets. The company uses straight-line depreciation. All
depreciation was up to date as of December 31, 2021. (Credit

6. 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 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
choose a transaction date
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date
enter an account title to record depreciation expense on forklift
enter a debit amount
enter a credit amount
enter an account title to record depreciation expense on forklift
enter a debit amount
enter a credit amount

7. (To record depreciation expense on forklift)
choose a transaction date
enter an account title to record sale of forklift on June 30
enter a debit amount
enter a credit amount
enter an account title to record sale of forklift on June 30
enter a debit amount
enter a credit amount
enter an account title to record sale of forklift on June 30
enter a debit amount
enter a credit amount
enter an account title to record sale of forklift on June 30
enter a debit amount
enter a credit amount

8. (To record sale of forklift)
choose a transaction date
enter an account title to record depreciation expense on truck
enter a debit amount
enter a credit amount
enter an account title to record depreciation expense on truck
enter a debit amount
enter a credit amount
(To record depreciation expense on truck)
choose a transaction date
enter an account title to record sale of truck on December 31
enter a debit amount
enter a credit amount
enter an account title to record sale of truck on December 31
enter a debit amount

9. enter a credit amount
enter an account title to record sale of truck on December 31
enter a debit amount
enter a credit amount
(To record sale of truck)
Brief Exercise 9-06
On January 1, 2022, the Sandhill Co. ledger shows Equipment
$43,400 and Accumulated Depreciation $16,360. The
depreciation resulted from using the straight-line method with a
useful life of 10 years and a salvage value of $2,500. On this
date, the company concludes that the equipment has a remaining
useful life of only 2 years with the same salvage value.
Compute the revised annual depreciation.
The revised annual depreciation
$enter the revised annual depreciation in dollars
Brief Exercise 9-07
Prepare journal entries to record these transactions. (Credit
account titles are automatically indented when amount is
entered. Do not indent manually. If no entry is required, select

10. "No Entry" for the account titles and enter 0 for the amounts.)
(a)
Cullumber Company retires its delivery equipment, which cost
$46,360. Accumulated depreciation is also $46,360 on this
delivery equipment. No salvage value is received.
(b)
Assume the same information as in part (a), except that
accumulated depreciation for the equipment is $36,640 instead
of 46,360.
No.
Account Titles and Explanation
Debit
Credit
(a)
enter an account title to record the transaction a
enter a debit amount
enter a credit amount
enter an account title to record the transaction a
enter a debit amount
enter a credit amount
(b)
enter an account title to record the transaction b
enter a debit amount
enter a credit amount

11. enter an account title to record the transaction b
enter a debit amount
enter a credit amount
enter an account title to record the transaction b
enter a debit amount
enter a credit amount
Brief Exercise 9-11
Suppose Nike, Inc. reported the following plant assets and
intangible assets for the year ended May 31, 2022 (in millions):
other plant assets $958.0, land $240.0, patents and trademarks
(at cost) $500.0, machinery and equipment $2,120.0, buildings
$960.0, goodwill (at cost) $180.0, accumulated amortization
$48.0, and accumulated depreciation $2,360.
Prepare a partial balance sheet for Nike for these items. (List
Property, Plant and Equipment in order of Land, Buildings and
Machinery and Equipment.)
NIKE, INC.
Partial Balance Sheet
As of May 31, 2022
(in millions)
select an opening name for subsection one

12. select a balance sheet item
$enter a dollar amount
select a balance sheet item
$enter a dollar amount
select a balance sheet item
enter a dollar amount
select a balance sheet item

13. enter a dollar amount
select between addition and deduction
: select a balance sheet item
enter a dollar amount
enter a subtotal of the four previous amounts
select a closing name for subsection one
enter a total amount for subsection one
select an opening name for subsection two
select a balance sheet item

14. enter a dollar amount
select a balance sheet item
$enter a dollar amount
select between addition and deduction
: select a balance sheet item
enter a dollar amount
enter a subtotal of the two previous amounts
select a closing name for subsection two
enter a total amount for subsection two

15. Brief Exercise 9-13
Blossom Chemicals Company acquires a delivery truck at a cost
of $35,000 on January 1, 2022. The truck is expected to have a
salvage value of $3,500 at the end of its 4-year useful life.
Assuming the declining-balance depreciation rate is double the
straight-line rate, compute annual depreciation for the first and
second years under the declining-balance method.
First Year
Second Year
Annual depreciation under declining-balance method
$Enter a dollar amount
$Enter a dollar amount

16. Property, Plant and Equipment
Land
240.0
Buildings
960.0