Presented below is information related to Morrow Manufacturing Corporation.

Presented below is information related to Morrow Manufacturing Corporation.

Asset

Cost

Estimated Salvage

Estimated Life (in years)

A

40500

5500

10

B

33600

4800

9

C

36000

3600

8

D

19000

1500

7

E

23500

2500

6

a. Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answers to 2 decimal places i.e. 12.25.)

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

c. Prepare the entry to record the sale of fixed asset D for cash of $5000. It was used for 6 years and depreciation was entered under the composite
method. (List multiple debit/credit entries from largest to smallest amount e.g. 10 5 2.)