Nash Co. purchased equipment for $429,200 which was estimated to have a useful life of 10 years with a salvage value of $10,400 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2026, it is determined that the total estimated life should be 15 years with a salvage value of $5,200 at the end of that time. (a) (b) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Prepare the entry (if any) to correct the prior years' depreciation. Prepare the entry to record depreciation for 2026. No. Account Titles and Explanation (a) (b) Debit Credit

Nash Co. purchased equipment for $429,200 which was estimated to have a useful life of 10 years with a salvage value of $10,400 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2026, it is determined that the total estimated life should be 15 years with a salvage value of $5,200 at the end of that time. (a) (b) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Prepare the entry (if any) to correct the prior years' depreciation. Prepare the entry to record depreciation for 2026. No. Account Titles and Explanation (a) (b) Debit Credit

Name: Gan Nash Co. purchased equipment for $429,200 which was estimated to h
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Description: Gan Nash Co. purchased equipment for $429,200 which was estimated to have a useful life of 10 years with a salvage value of $10,400 atthe end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2026, it is determined

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...

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On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.
Wildhorse Co. purchased equipment for $418,800 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2021, it is determined that the total estimated life should be 15 years with a salvage value of $5,200 at the end of that time. (a) Prepare the entry (if any) to correct the prior years’ depreciation. (b) Prepare the entry to record depreciation for 2021.
Pina Co. purchased equipment for $422,400 which was estimated to have a useful life of 10 years with a salvage value of $11,200 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2026, it is determined that the total estimated life should be 15 years with a salvage value of $4,800 at the end of that time. (a) Prepare the entry (if any) to correct the prior years' depreciation. (b) Prepare the entry to record depreciation for 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation Debit Credit (a) (b)
Machinery purchased for $64,200 by Sheridan Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,280 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,815 at the end of that time. Assume straight-line depreciation. (a) X Your answer is incorrect. Prepare the entry to correct the prior years' depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Accumulated Depreciation - Machinery Debit MacBook 7757.5 Credit
Machinery purchased for $65,400 by Bonita Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,360 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,905 at the end of that time. Assume straight-line depreciation. (a) Prepare the entry to correct the prior years' depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
Machinery purchased for $65,400 by Bonita Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,360 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $4,905 at the end of that time. Assume straight-line depreciation. (a) Your answer is correct. Prepare the entry to correct the prior years' depreciation, if necessary. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation (b) No Entry No Entry eTextbook and Media List of Accounts Debit Account Titles and Explanation 0 Debit Credit Prepare the entry to record depreciation for 2026. (If no entry is required, select "No entry" for the account titles and enter O for the…
Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value ofP4,500,000. OnJanuary1,2027, theasset hada recoverable value ofP1,375,000. 64) How much is credited to the revaluation surplus as a result of the revaluation in 2024? A. 1,500,000B. 1,250,000 C. 1,000,000 D.750,000 65) What is the correct depreciation to be recognized in 2024? A. 750,000 B. 1,000,000 C. 1,250,000 D. 1,500,000 66) How much is the loss on impairment should be recognized on January 1, 2027? A. 750,000B. 500,000 C. 250,000D.0
Peter M. Dell Co. purchased equipment for $510,000 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2021, it is determined that the total estimated life should be 15 years with a salvage value of $5,000 at the end of that time. Instructions a. Prepare the entry (if any) to correct the prior years' depreciation. b. Prepare the entry to record depreciation for 2021.
Machinery purchased for $68,400 by Bramble Co. in 2021 was originally estimated to have a life of 8 years with a salvage value of $4,560 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2026, it is determined that the total estimated life should be 10 years with a salvage value of $5,130 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if necessary.
On January 1, 2019, Desert Company purchased equipment at a cost of $388,388. The equipment was estimated to have a salvage value of $12,035 and it is being depreciated over five years under the sum of years' digits method. What should be the charge for depreciation of this equipment for the year ended December 31, 2021? *round your answer to the nearest $1 62,726
Judds Company purchased a new plant asset on April 1, 2020, at a cost of $711,000. It was estimated to have a useful life of 20 years and a salvage value of $60,000. Judd's accounting period is the calendar year. required A. Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years’-digits method. B. Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method.