Exercise 11-9Presented below is information related to Blossom Manufacturing Corporation.Asset Cost Estimated Salvage Estimated Life (in years)A $41,310  $5,610   10 B 34,272  4,896   9 C 36,720  3,672   9 D 19,380  1,530   7 E 23,970  2,550   6      Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.)Composite rate   %  SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO TEXT   Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (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. Use Plant Assets related account.)Account Titles and ExplanationDebitCredit        SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO TEXT   Prepare the entry to record the sale of asset D for cash of $4,896. It was used for 6 years, and depreciation was entered under the composite method. (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. Use Plant Assets related account.)Account Titles and ExplanationDebitCredit           Click if you would like to Show Work for this question:Open Show WorkPlease answer all parts of the question

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Asked Nov 25, 2019
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Exercise 11-9

Presented below is information related to Blossom Manufacturing Corporation.

Asset
 
Cost
 
Estimated Salvage
 
Estimated Life (in years)
A   $41,310     $5,610       10  
B   34,272     4,896       9  
C   36,720     3,672       9  
D   19,380     1,530       7  
E   23,970     2,550       6  
 
 
 
 
 
Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.)

Composite rate  
 
 %
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
 
 
 
Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (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. Use Plant Assets related account.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
 
 
 
Prepare the entry to record the sale of asset D for cash of $4,896. It was used for 6 years, and depreciation was entered under the composite method. (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. Use Plant Assets related account.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
 
 
 
 

 

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Please answer all parts of the question

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Step 1

Compute the rate of depreciation per year to be applied to the plant assets under the composite method.

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Depreciation Cost (A) Asset Estimated Estimated life (C) salvage (B) per year (А -B)/C $41,310 $34,272 $36,720 $19,380 $23,970 $155,652 $5,610 $4,896 $3,672 $1,530 $2,550 $3,570 $3,264 $3,672 $2,550 $3.570 $16,626 Total depreciation per year 10 years 9 years 9 years 7 years б уеars A В C D Е Total Depreciation rate under composite method Total cost $16,626 $155,652 0.106815 or, 10.68% =

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Step 2

Prepare the adjusting entry ...

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Account and explanation Date Debit Credit Depreciation expense $16,626 Accumulated depreciation-plant assets $16,626 (To record depreciation expense)

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