Solution-Prepare the journal entry to record depreciation

Prepare the journal entry to record depreciation expense

Assignment Help Accounting Basics

Reference no: EM132601658

Question - Oliver Inc. acquired the following assets in January 2017:

Equipment: estimated useful life, 5 years; residual value, $15,000 $440,000

Building: estimated useful life, 30 years; no residual value $630,000

The equipment was depreciated using the double-declining-balance method for the first three years for financial reporting purposes. In 2020, the company decided to change the method of calculating depreciation for the equipment to the straight-line method, because of a change in the pattern of benefits received (but no change was made in the estimated useful life or residual value). It was also decided to change the building's total estimated useful life from 30 years to 40 years, with no change in the estimated residual value. The building is depreciated using the straight-line method.

1. Prepare the journal entry to record depreciation expense for the equipment in 2020. (Ignore tax effects.)

2. Prepare the journal entry to record the depreciation expense for the building in 2020. (Ignore tax effects.)

Reference no: EM132601658

Questions Cloud

Which would be implied by an increase in a company : Which would be implied by an increase in a company's gearing ratio? Has profits which are more sensitive to changes in sales volume

Which is not a common reason for small-business failure : Which is not a common reason for small-business failure? lack of necessary personnel./ Lack of experience./ poor allocation of time.

Our perceptions of social role and context of business : How our perceptions of the social role and context of business have changed since the dawn of the industrial revolution.

Wha the maximum level of efficiency of the capital market is : Published statements and comments on company plans and performance, is acting as if he believed that the maximum level of efficiency of the capital market is

Prepare the journal entry to record depreciation expense : Oliver Inc. acquired the following assets in January 2017: Prepare the journal entry to record depreciation expense for the equipment in 2020

Most fundamental issues in business law : One of the most fundamental issues in business law involves the question of when a company can be held liable for the acts of an individual person,

Determine interest coverage ratio would be : Determine Interest Coverage Ratio would be, Earnings after Interest and Tax is Birr 20 crore, interest is Birr 4 crore, Income Tax is Birr 16 crore

How you selected the task components of the position : From your discussion preparation work, create a job description for your current or most recent position. Justify how you selected the task components.

Organizational behavior concept diversity : Description of the Organizational Behavior concept ‘DIVERSITY' at the workplace. How Diversity impacted the organizational behavior and structure at Accenture?

User Account

All Pages

Prepare the journal entry to record depreciation expense

Reference no: EM132601658

Reference no: EM132601658

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT