Prepare the entry to correct the prior years depreciation

Assignment Help Accounting Basics

Reference no: EM131931472

Problem

Novak Co. purchased equipment for $543,400 which was estimated to have a useful life of 10 years with a salvage value of $8,200 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2018, it is determined that the total estimated life should be 15 years with a salvage value of $4,200 at the end of that time.

(a) Prepare the entry (if any) to correct the prior years' depreciation.
(b) Prepare the entry to record depreciation for 2018.

Reference no: EM131931472

Questions Cloud

Prepare a statement of partnership liquidation : Prepare a statement of partnership liquidation, covering the period November 1-30, 2016, for each of the following independent assumptions.

Find the buyers otb for the month at retail : The planned initial markup was 48%. Find the buyer's OTB for the month at retail and at cost.

Gaps in the mental health care system : Post an explanation of the specific challenges or gaps in the mental health care system for the care of individuals with chronic mental illnesses.

Define the meaning of cost of poor quality : Discussion the difference(s) between attribute data and variables data? Give examples to support your discussion.

Prepare the entry to correct the prior years depreciation : Prepare the entry to correct the prior years' depreciation. Prepare the entry to record depreciation for 2018.

Concepts of coherence and connection : In Chapter 5 you learned about short-term memory, and in Chapter 11 about the concepts of coherence and connection.

What is the expected net income for company : ABC expects sales of $20,179,000 this year. The cost of goods sold is expected to be $11,170,000 while selling, general and administrative (SGA) expenses.

What is the balance of the long-term notes payable account : On November? 1, 2016, EZ Products borrowed $66,000 on a 6%, 8-year note. On November 1, 2018, what is the balance of the Long-Term Notes Payable account?

Placebo effect-cracking the code : In effect, is a doctor who prescribes a sugar pill (even if it works) to lessen symptoms harming a patient? What do you think of the use of the placebo?

User Account

All Pages