On April 1, Year 1, Raines Co. purchased and placed a plant asset in service. The following information is available regarding the plant asset: Acquisition cost $130,000Estimated salvage value$15,000Estimated useful life 5 yearsMake the necessary adjusting journal entries at December 31, Year 1, and December 31, Year 2 to record depreciation for each year under the double-declining balance depreciation method:
What will be an ideal response?
| Year 1 | ? | ? | ? |
| Dec. 31 | Depreciation Expense | 39,000 | ? |
| ? | Accumulated Depreciation | ? | 39,000 |
| ? | ? | ? | ? |
| ? | ($130,000 x 40%) x 9/12 = $39,000 | ? | ? |
| Year 2 | ? | ? | ? |
| Dec. 31 | Depreciation Expense | 36,400 | ? |
| ? | Accumulated Depreciation | ? | 36,400 |
| ? | ? | ? | ? |
| ? | ($130,000 - $39,000) x 40% = $36,400 | ? | ? |
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