E11-9 Presented below is information related to LeBron James Manufacturing Corporation.

| June 14, 2016

Question
E11-9Presented below is information related to LeBron James Manufacturing Corporation.

Asset

Cost

Estimated Salvage

Estimated Life (in years)

A

$ 40,500

$ 5,500

10

B

33,600

4,800

9

C

36,000

3,600

9

D

19,000

1,500

7

E

23,500

2,500

6

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

Composite rate

Prepare the adjusting entry necessary at the end of the year to record depreciation for the year.

Account Titles and Explanation

Debit

Credit

Prepare the entry to record the sale of asset D for cash of $4,800. It was used for 6 years, and depreciation was entered under the composite method.

Account Titles and Explanation

Debit

Credit

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