Hahaa E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2][The following information applies to the questions displayed below.]Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showedthe following balances:EquipmentAccumulated Depreciation (beginning of the year)During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance:Routine maintenance andairs on the quipmentMajor overhaul of the equipment that improved efficiencyE9-18 (Algo) Part 1$ 220,000101,500The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $17,000 estimatedresidual value. The annual accounting period ends on December 31.DateDecember 31, 2021Required:1. Indicate the effects (accounts, amounts, and + for increase and - for decrease) of the 2021 adjustment for depreciation of themanufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations.Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)Assets$ 2,55031,000==Liabilities+Stockholders

Depreciation is used to record the cost of asset in its useful life. Depreciation allocate capital…

E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2] [The following information applies to the questions displayed below.] Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 220,000 101,500 9-18 (Algo) Part 1 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $17,000 estimated residual value. The annual accounting period ends on December 31. Date December 31, 2021 Required: 1. Indicate the effects (accounts, amounts, and + for increase and for decrease) of the 2021 adjustment for depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Assets $ 2,550 31,000 = Liabilities Stockholders

E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2] [The following information applies to the questions displayed below.] Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 220,000 101,500 9-18 (Algo) Part 1 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $17,000 estimated residual value. The annual accounting period ends on December 31. Date December 31, 2021 Required: 1. Indicate the effects (accounts, amounts, and + for increase and for decrease) of the 2021 adjustment for depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Assets $ 2,550 31,000 = Liabilities Stockholders

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 17P: On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and...

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! Required information E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2] [The following information applies to the questions displayed below.] Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 310,000 143,500 E9-18 (Algo) Part 1 $ 3,150 37,000 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $23,000 estimated residual value. The annual accounting period ends on December 31.
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