FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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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
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