Required information. [The following information applies to the questions displayed below] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $44,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $5,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $800. 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining- balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list View journal entry worksheet No 1 Event 1 General Journal Debit 3,450 Credit

Required information. [The following information applies to the questions displayed below] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $44,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $5,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $800. 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining- balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list View journal entry worksheet No 1 Event 1 General Journal Debit 3,450 Credit

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.8MCP

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[The following information applies to the questions displayed below.]Wardell Company purchased a mainframe on January 1, 2019, at a cost of $48,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200. 1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year. 2. Prepare the year-end journal entry for depreciation in 2021. Assume that the company uses the sum-of-the-years' -digits method instead of the straight-line method.
Required information [The following Information applies to the questions displayed below] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $56,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $8,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $2,000. 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double declining- balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. Answer is complete but not entirely correct. No Event 1 Depreciation expense Accumulated depreciation computer General Journal Debit Credit 4,680 x 4,680
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $57,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $6,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200. Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024. No depreciation was recorded during the year. Record depreciation expense for 2024. Event General Journal Debit Credit 1 Depreciation expense 4,425 Accumulated depreciation—computer 4,425 Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining-balance method instead of the straight-line method. Event General Journal Debit Credit 1 Depreciation…
Required information [The following information applies to the questions displayed below.] Wardell Company purchased a mainframe on January 1, 2019, at a cost of $43,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $10,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,600. Required: 1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answer to nearest whole dollar.) View transaction list Journal entry worksheet 1 Record depreciation expense for 2021. Note: Enter debits before credits. Event 1 General Journal Depreciation expense Accumulated depreciation-computer Record entry Clear entry Debit Credit View general journal
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $57,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $6,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining-balance method instead of the straight-line method.
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $48,000 The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1. 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200 Exercise 11-23 (Algo) Part 1 Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024 No depreciation was recorded during the year Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar. No 1 Event 1 Answer is complete and correct. General Journal Depreciation expense Accumulated depreciation-computer Debit 3,600Ⓒ Credit 1600
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $48.000 The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,200 Exercise 11-23 (Algo) Part 2 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-decline balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list Journal entry worksheet 1 Record depreciation expense for 2024,
Wardell Company purchased a minicomputer on January 1, 2019, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900.Required:1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year.2. Repeat requirement 1 assuming that the company uses the sum-of-the-years’-digits method instead of the straight-line method.
MLBB Company purchased a computer for $60,000 and placed it in operation on 2021 January 2. Depreciation was recorded for 2021 and 2022 using the straight-line method, a six-year life, and an expected salvage value of $2,400. The introduction of a new model of this computer in 2023 caused the company to revise its estimate of useful life to a total of four years and to reduce the estimated salvage value to zero. Compute the depreciation expense on the computer for 2023.
Wardell Company purchased a minicomputer on January 1, 2013, at a cost of $50,000. The computer was depreciated using the sum-of-the-years'-digits method over an estimated seven-year life with an estimated residual value of $4,000. On January 1, 2016, the estimate of useful life was changed to a total of 11 years, and the estimate of residual value was changed to $800. Question Depreciation for 2016 would be: $4,362 $7,714 $3,790 $5,790
The cost of equipment purchased by Oriole, Inc., on June 1, 2025, is $90,300. It is estimated that the machine will have a $6,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 600,000 units. During 2025, the machine was operated 7,260 hours and produced 66,550 units. During 2026, the machine was operated 6,655 hours and produced 58,000 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892.) a. Straight-line b. Units-of-output C. Working hours d. Sum-of-the-years'-digits $ $ $ $ e. Double-declining-balance $ 2025 $ $ $ $ +A $ 2026
The cost of equipment purchased by Oriole, Inc., on June 1, 2025, is $90,300. It is estimated that the machine will have a $6,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 600,000 units. During 2025, the machine was operated 7,260 hours and produced 66,550 units. During 2026, the machine was operated 6,655 hours and produced 58,000 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892) a. b. Straight-line Units-of-output C. Working hours d. Sum-of-the-years-digits $ $ to e. Double-declining-balance $ tA 2025 7000 9310 14520 21000 25826 $ $ $ GA $ 2026 12000 8120 13310 14850 18440