(b) Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2020. Crane uses straight-line depreciation; the estimated salvage value for the depot is zero. (Round answers to 0 decimal places, eg. 5,275. 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.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record depreciation for the depot) December 31, 2020 (To record depreciation on asset retirement obligation) December 31, 2020 (To record interest on asset retirement obligation)
(b) Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2020. Crane uses straight-line depreciation; the estimated salvage value for the depot is zero. (Round answers to 0 decimal places, eg. 5,275. 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.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record depreciation for the depot) December 31, 2020 (To record depreciation on asset retirement obligation) December 31, 2020 (To record interest on asset retirement obligation)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...
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