Question

Quigley Co. bought a machine on January 1, 2016 for $1,402,300. It had a $119,700 estimated residual value and a 11-year life. An expense account was debited on the purchase date. Quigley uses straight-line depreciation. This was discovered in 2018. Prepare the entries related to the machine for 2018. Ignore taxes. (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. Round answers to 0 decimal places, e.g. 5,250.) Account Titles and Explanation Debit Credit Machinery 1402300 Cash 1402300 (To correct the error) Accumulated Depreciation-Machinery 116600 Machinery 116600 (To record depreciation expense)

PLease HElp

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Dec 31, 2018	Machine (Assets)	$1,402,300
	Retained earnings		$1,402,300
	(To correct the error)
Dec 31, 2018	Depreciation Expense	$116,600
	Accumulated Depreciation-Machinery		$116,600
	(To record Depreciation Expense)

Straight line depreciation = (cost - salvage value) / useful life
= ($1,402,300 - $119,700) / 11 = $116,600

Depreciation for 2016 & 2017 = $116,600 x 2 = $233,200