Prepare the entry to record depreciation

Assignment Help Accounting Basics
Reference no: EM132529591

Question - Prifzer Co. purchased equipment on January 1, 2015 for $1,000,000. It was estimated to have a useful life of 15 years with a salvage value of $25,000 at the end of that time. Depreciation has been entered for 5 years on a straight-line basis. In 2020, it is determined that the total estimated life should be 10 years with no salvage value at the end of that time.

Required -

a) Explain whether the company should now, in 2020, go back and adjust the financial statements from prior years because of this change. Clearly indicate what changes for those years, if any, need to be made.

b) Prepare the entry to record depreciation for 2020. Show all calculations.

Reference no: EM132529591

Questions Cloud

Calculate the margin of safety in units : The price is $20, and fixed costs are $106,200. Calculate the margin of safety in units and in sales revenue if 18,000 custom skins are sold
Average tax per gallon of gasoline : Is there enough evidence to say that the average tax per gallon of gasoline is less than 45 cents? use \ alpha = 0.01
Analyze the factor of police negotiation during the siege : Analyze the factor of police negotiation during the siege. Explain how non-law-enforcement personnel (e.g., compound residents, media) impacted the efforts.
What is jupiter cost of goods manufactured : What is Jupiter's cost of goods manufactured? What is Jupiter's cost of goods sold? What is Jupiter's cost of direct materials used during the year?
Prepare the entry to record depreciation : Prifzer Co. purchased equipment on January 1, 2015 for $1,000,000. Prepare the entry to record depreciation for 2020. Show all calculations
Prepare efe and cpm matrixes : Prepare EFE and CPM matrixes for Hershey Company. Use Mars and Nestle for competitors in the CPM.
Discuss messer rosenfeld anomie theory : Discuss Messer Rosenfeld's anomie theory. How does it explain white-collar crime? Do you agree with the theory? Why or why not?
What are the total number of equivalent units : Mass Manufacturing, Inc. uses the weighted-average method of process costing. What are the total number of equivalent units
Determine the value of b : An investigator has prepared a drug dosage level that he says will induce sleep in 80% of people with insomnia. After examining the dose, we think that

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd