FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please answer the following question
Must choose from the following LIST OF ACCOUNTS:
Accumulated Depletion
Accumulated Depreciation - Buildings
Accumulated Depreciation - Equipment
Accumulated Depreciation - Furniture and Fixtures
Accumulated Depreciation - Machinery
Accumulated Depreciation - Vehicles
Accumulated Impairment Losses - Building
Accumulated Impairment Losses - Equipment
Accumulated Impairment Losses - Land
Accumulated Impairment Losses - Machinery
Accumulated Impairment Losses - Mine
Accumulated Impairment Losses - Patents
Accumulated Impairment Losses - Tools and Dies
Accumulated Impairment Losses - Vehicles
Asset Retirement Obligation
Buildings
Cash
Common Shares
Contribution Expense
Cost of Goods Sold
Deferred Revenue - Government Grants
Depreciation Expense
Equipment
Furniture and Fixtures
Gain on Disposal of Automobiles
Gain on Disposal of Building
Gain on Disposal of Equipment
Gain on Disposal of Furniture and Fixtures
Gain on Disposal of Machinery
Gain on Disposal of Vehicles
Gain on Sale of Land
Interest Expense
Interest Pavable
Inventory
Investment Property
Land
Liability for Site Restoration
Loss on Disposal of Automobiles
Loss on Disposal of Building
Loss on Disposal of Equipment
Loss on Disposal of Machinery
Loss on Disposal of Vehicles
Loss on Expropriation
Loss on Impairment
Loss on Sale of Land
Machinery
Mineral Resources
No Entry
Notes Payable
Oil Property
Recovery of Loss from Impairment
Repairs and Maintenance Expense
Revaluation Surplus (OCI)
Revenue - Government Grants
Royalty Expense
Vehicles
Transcribed Image Text:Machinery purchased for $67,400 by Novak Corp. on January 1, 2018, was originally estimated to have an 8-year useful life with a
residual value of $5,000. Depreciation has been entered for five years on this basis. In 2023, it is determined that the total estimated
useful life (including 2023) should have been 10 years, with a residual value of $5,500 at the end of that time. Assume straight-line
depreciation and that Novak uses IFRS for financial statement purposes.
(a)
Your answer is correct.
Prepare the entry that is required to correct the prior years' depreciation, if any. (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
(b)
No Entry
No Entry
eTextbook and Media
List of Accounts
Your answer is correct.
Account Titles and Explanation
Depreciation Expense
Debit
Prepare the entry to record depreciation for 2023. (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.)
Accumulated Depreciation - Machinery
Debit
Credit
4580
Attempts: 1 of 3 used
Credit
4580
Transcribed Image Text:Your answer is correct.
Repeat part (b) assuming Novak uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a
salvage value of $0. In 2023, it is determined that the total estimated physical life (including 2023) should have been 11 years,
with a salvage value of $400 at the end of that time. (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.)
Account Titles and Explanation
(d)
Depreciation Expense
Accumulated Depreciation - Machinery
eTextbook and Media
List of Accounts
Debit
4559
Debit
Credit
4559
Repeat part (b) assuming Novak uses the double-declining-balance method of depreciation. (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.)
Account Titles and Explanation
Credit
Attempts: 1 of 3 used
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