Solution-Prepare the journal entry to record depreciation

Prepare the journal entry to record depreciation expenses

Assignment Help Accounting Basics

Reference no: EM133022951

Question - Kathleen Cole Inc. acquired the followingassets in January of 2018. Equipment, estimated service life, 5 years; salvage value, $15,000 $525,000

Building, estimated service life, 30 years; no salvage value $693,000

The equipment has been depreciated using the sum-of-the-years'-digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method.

Required -

a. Prepare the general journal entry to record depreciation expenses for the equipment in 2021.

b. Prepare the journal entry to record depreciation expenses for the building in 2021. (Round all computations to two decimal places.)

Reference no: EM133022951

Questions Cloud

Compute the cash balance at the end of the first year : Tri Fecta, a partnership, had revenues of $371,000 in its first year of operations. Compute the cash balance at the end of the first year

Determine wages deposited in employees bank accounts : Miller Manufacturing has a two-week payroll of $8,200 for its eight employees. Determine Wages deposited in employees bank accounts

Creative accounting techniques when making strategic : An evaluation of the sources of financial data which can be used to inform business strategy - review of methods that can be used for appraising strategic

Finance for Strategic Managers : Prepare a report that evaluates the capital expenditure proposals using appropriate financial techniques.

Prepare the journal entry to record depreciation expenses : Building, estimated service life, 30 years; no salvage value $693,000. Prepare the journal entry to record depreciation expenses

What is the standard deviation of the? stock returns : Question - The last four years of returns for a stock are as? follows: What is the standard deviation of the? stock returns

What are the expected annual payments from the investment : Currently, interest rates are 9 percent. If you purchase the security today with no commissions, what are the expected annual payments from the investment

What is vulko taxable income : Vulko has been profitable over the past three years. Aggregate taxable income of $161,000 was reported, What is Vulko's taxable income for fiscal 2020

How much will harry have at the end of the fifth year : Harry has received a $1500 bonus. His bonus is expected to grow by 5% for the next 5 years. How much will harry have at the end of the fifth year

User Account

All Pages

Prepare the journal entry to record depreciation expenses

Reference no: EM133022951

Reference no: EM133022951

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