Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, 2022, Sweet Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $52,800 salvage value, $876,800 cost Equipment, 12-year estimated useful life, $10,000 salvage value, $103,600 cost The building has been depreciated under the double-declining-balance method through 2025. In 2026, the company decided to switch to the straight-line method of depreciation. Sweet also decided to change the total useful life of the equipment to 9 years, with a salvage value of $4,800 at the end of that time. The equipment is depreciated using the straight-line method. a) Your answer is partially correct. Prepare the journal entry necessary to record the depreciation expense on the building in 2026. (Round answers to O decimal places, e.g. 125. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

On January 1, 2022, Sweet Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $52,800 salvage value, $876,800 cost Equipment, 12-year estimated useful life, $10,000 salvage value, $103,600 cost The building has been depreciated under the double-declining-balance method through 2025. In 2026, the company decided to switch to the straight-line method of depreciation. Sweet also decided to change the total useful life of the equipment to 9 years, with a salvage value of $4,800 at the end of that time. The equipment is depreciated using the straight-line method. a) Your answer is partially correct. Prepare the journal entry necessary to record the depreciation expense on the building in 2026. (Round answers to O decimal places, e.g. 125. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Karan

Subject: acounting 

On January 1, 2022, Sweet Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $52,800 salvage value, $876,800 cost Equipment, 12-year estimated useful life, $10,000 salvage value, $103,600 cost The building has been depreciated under the double-declining-balance method through 2025. In 2026, the company decided to switch to the straight-line method of depreciation. Sweet also decided to change the total useful life of the equipment to 9 years, with a salvage value of $4,800 at the end of that time. The equipment is depreciated using the straight-line method. (a) Your answer is partially correct. Prepare the journal entry necessary to record the depreciation expense on the building in 2026. (Round answers to O decimal places, e.g. 125. 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.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation-Buildings Debit 16,116 Credit 16,116
Transcribed Image Text:On January 1, 2022, Sweet Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $52,800 salvage value, $876,800 cost Equipment, 12-year estimated useful life, $10,000 salvage value, $103,600 cost The building has been depreciated under the double-declining-balance method through 2025. In 2026, the company decided to switch to the straight-line method of depreciation. Sweet also decided to change the total useful life of the equipment to 9 years, with a salvage value of $4,800 at the end of that time. The equipment is depreciated using the straight-line method. (a) Your answer is partially correct. Prepare the journal entry necessary to record the depreciation expense on the building in 2026. (Round answers to O decimal places, e.g. 125. 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.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation-Buildings Debit 16,116 Credit 16,116
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS