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Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record depreciation on its Property and Equipment. Assume that Newell Brands makes one adjusting journal entry for depreciation expense at the end of each fiscal year as part of its adjusting entries

Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record depreciation on its Property and Equipment. Assume that Newell Brands makes one adjusting journal entry for depreciation expense at the end of each fiscal year as part of its adjusting entries

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
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Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record depreciation on its Property and Equipment. Assume that Newell Brands makes one adjusting journal entry for depreciation expense at the end of each fiscal year as part of its adjusting entries

1.1. Description of Business Newell Brands is a leading global consumer goods company with a strong portfolio of well-known brands, including Rubbermaid®, Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®, Marmot®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®, Contigo®, First Alert®, Mapa®, Spontex® and Yankee Candle®. Newell Brands is committed to enhancing the lives of consumers around the world with planet friendly, innovative and attractive products that create moments of joy and provide peace of mind. The Company sells its products in nearly 200 countries around the world and has operations on the ground in over 40 of these countries, excluding third-party distributors. 6. Property, Plant, and Equipment Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are expensed as incurred. Depreciation expense is calculated principally on the straight-line basis. Useful lives determined by the Company are as follows: buildings and improvements (20 – 40 years) and machinery and equipment (3 - 15 years). Depreciation expense was $200 million, and $254 million in 2020, and 2019, respectively. The following table summarizes property and equ nent (in As of December 31, 2020 2019 Land $ 86 $ 86 Buildings and improvements Machinery and equipment 664 641 2,314 3,064 |(1,888) $ 1,176 2,151 2,878 |(1,723) $ 1,155 Total property, plant and equipment Accumulated depreciation Property, plant and equipment, net 7. Goodwill and Intangible Assets The Company evaluates goodwill for impairment annually at the reporting unit level. The Company also tests for impairment if events and circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. If the carrying amount of the reporting unit is greater than the fair value, impairment may be present. The Company measures the amount of any goodwill impairment by comparing the fair value to the carrying value of the reporting unit. An impairment charge is recognized to the extent the carrying value of the reporting unit exceeds the fair value. The Company evaluates indefinite-lived intangible assets (primarily trademarks and tradenames) for impairment annually. The Company also tests for impairment if events and circumstances indicate that it is more likely than not that the fair value of an indefinite- lived intangible asset is below its carrying amount. The following table reflects goodwill activity for fiscal 2020 and 2019 (in millions): Goodwill balance as of December 31, 2018 $ 3,874 Acquisitions Other Goodwill balance as of December 31, 2019 $ 3,709 Acquisitions Other (165) (156) Goodwill balance as of December 31, 2020 $ 3,553 Total amortization expense for intangible assets subject to amortization was $157 million and $192 million in 2020 and 2019, respectively. Fo
Transcribed Image Text:1.1. Description of Business Newell Brands is a leading global consumer goods company with a strong portfolio of well-known brands, including Rubbermaid®, Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®, Marmot®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®, Contigo®, First Alert®, Mapa®, Spontex® and Yankee Candle®. Newell Brands is committed to enhancing the lives of consumers around the world with planet friendly, innovative and attractive products that create moments of joy and provide peace of mind. The Company sells its products in nearly 200 countries around the world and has operations on the ground in over 40 of these countries, excluding third-party distributors. 6. Property, Plant, and Equipment Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are expensed as incurred. Depreciation expense is calculated principally on the straight-line basis. Useful lives determined by the Company are as follows: buildings and improvements (20 – 40 years) and machinery and equipment (3 - 15 years). Depreciation expense was $200 million, and $254 million in 2020, and 2019, respectively. The following table summarizes property and equ nent (in As of December 31, 2020 2019 Land $ 86 $ 86 Buildings and improvements Machinery and equipment 664 641 2,314 3,064 |(1,888) $ 1,176 2,151 2,878 |(1,723) $ 1,155 Total property, plant and equipment Accumulated depreciation Property, plant and equipment, net 7. Goodwill and Intangible Assets The Company evaluates goodwill for impairment annually at the reporting unit level. The Company also tests for impairment if events and circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. If the carrying amount of the reporting unit is greater than the fair value, impairment may be present. The Company measures the amount of any goodwill impairment by comparing the fair value to the carrying value of the reporting unit. An impairment charge is recognized to the extent the carrying value of the reporting unit exceeds the fair value. The Company evaluates indefinite-lived intangible assets (primarily trademarks and tradenames) for impairment annually. The Company also tests for impairment if events and circumstances indicate that it is more likely than not that the fair value of an indefinite- lived intangible asset is below its carrying amount. The following table reflects goodwill activity for fiscal 2020 and 2019 (in millions): Goodwill balance as of December 31, 2018 $ 3,874 Acquisitions Other Goodwill balance as of December 31, 2019 $ 3,709 Acquisitions Other (165) (156) Goodwill balance as of December 31, 2020 $ 3,553 Total amortization expense for intangible assets subject to amortization was $157 million and $192 million in 2020 and 2019, respectively. Fo
newell BRANDS Consolidated Balance Sheets In millions of dollars As of As of ASSETS Dec 31, 2020 Dec 31, 2019 Cash and cash equivalents $ 981 $ 349 Accounts receivable, net 1,678 1,842 Inventories 1,638 1,606 Prepaid expenses and other current assets 331 313 Total current assets $ 4,628 $ 4,110 Property, plant, and equipment, net 1,176 1,155 Goodwill 3,553 3,709 Other long-term assets 5,343 6,668 Total assets $ 14,700 $ 15,642 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 1,526 $ 1,102 Wages payable 236 204 Current portion of long-term debt 466 332 Other current liabilities 1,393 1,340 Total current liabilities 3,621 2,978 Long-term debt 5,141 5,391 Other noncurrent liabilities 2,038 2,277 Total liabilities 10,800 10,646 Common stock 3,448 4,447 Retained earnings 452 549 Total stockholders' equity 3,900 4,996 Total liabilities and stockholders' equity $ 14,700 $ 15,642
Transcribed Image Text:newell BRANDS Consolidated Balance Sheets In millions of dollars As of As of ASSETS Dec 31, 2020 Dec 31, 2019 Cash and cash equivalents $ 981 $ 349 Accounts receivable, net 1,678 1,842 Inventories 1,638 1,606 Prepaid expenses and other current assets 331 313 Total current assets $ 4,628 $ 4,110 Property, plant, and equipment, net 1,176 1,155 Goodwill 3,553 3,709 Other long-term assets 5,343 6,668 Total assets $ 14,700 $ 15,642 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 1,526 $ 1,102 Wages payable 236 204 Current portion of long-term debt 466 332 Other current liabilities 1,393 1,340 Total current liabilities 3,621 2,978 Long-term debt 5,141 5,391 Other noncurrent liabilities 2,038 2,277 Total liabilities 10,800 10,646 Common stock 3,448 4,447 Retained earnings 452 549 Total stockholders' equity 3,900 4,996 Total liabilities and stockholders' equity $ 14,700 $ 15,642
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