Culver Company shows the following entries in its Equipment account for 2018. All amounts are based on historical cost. Equipment 2018          2018         Jan. 1   Balance   127,740   June 30   Cost of equipment sold     Aug. 10   Purchases   31,390      (purchased prior to 2018)   24,840 12   Freight on equipment purchased   720            25   Installation costs   2,930            Nov. 10   Repairs   480                      Prepare correcting entry if necessary. (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.) Account Titles and Explanation Debit Credit                 SHOW LIST OF ACCOUNTS LINK TO TEXT       Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2018 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2018, balance was purchased in 2016. (Round answers to 0 decimal places, e.g. 45,892.) (1)   Straight-line   $   (2)   Sum-of-the-years'-digits   $       Click if you would like to Show Work for this question: Open Show Work Please answer all parts of my question

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Culver Company shows the following entries in its Equipment account for 2018. All amounts are based on historical cost.

Equipment
2018          2018        
Jan. 1   Balance   127,740   June 30   Cost of equipment sold    
Aug. 10   Purchases   31,390      (purchased prior to 2018)   24,840
12   Freight on equipment purchased   720           
25   Installation costs   2,930           
Nov. 10   Repairs   480           
 
 
 
 
 
Prepare correcting entry if necessary. (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.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
 
 
 
Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2018 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2018, balance was purchased in 2016. (Round answers to 0 decimal places, e.g. 45,892.)

(1)   Straight-line  
$
 
(2)   Sum-of-the-years'-digits  
$
 
 

 

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