Repeat parts (a) through (d) assuming that Sweet Acacia prepares its financial statements using ASPE. The original estimate of the physical life of the building was 44 years, with a salvage value of $130,000. (Ignore the addition in early 2005.) In 2023, the estimated useful life and physical life were both revised to be 30 years, with no residual value/salvage value for the asset at the end of the 30-year period. (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 debit entry before credit entry. Round answers to O decimal places, e.g. 5,275.) Annual depreciation, 1995 through 2004 $ Annual depreciation, 2005 through 2022 Account Titles and Explanation Annual depreciation $ A /year /year Debit Credit

Repeat parts (a) through (d) assuming that Sweet Acacia prepares its financial statements using ASPE. The original estimate of the physical life of the building was 44 years, with a salvage value of $130,000. (Ignore the addition in early 2005.) In 2023, the estimated useful life and physical life were both revised to be 30 years, with no residual value/salvage value for the asset at the end of the 30-year period. (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 debit entry before credit entry. Round answers to O decimal places, e.g. 5,275.) Annual depreciation, 1995 through 2004 $ Annual depreciation, 2005 through 2022 Account Titles and Explanation Annual depreciation $ A /year /year Debit Credit

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 8P: At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the...

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During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.
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Seed-cleaning equipment was purchased in 2018 for $8500 and was depreciated by the double declining balance (DDB) method for an expected life of 12 years. What is the book value of the equipment at the end of 2023? The original salvage value was estimated to be $2500 at the end of 12 years.
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