Recording a Change in Depreciation Method Southern Corporation has been depreciating equipment over a 10-year life using the sum-of-the- years'-digits method. The equipment was acquired January 1, 2016, and cost $68,000 (estimated residual value, $13,000). The company decided to change to straight-line depreciation, effective at the beginning of 2020, with no change in the estimated useful life or the residual value. The annual accounting period ends December 31. Required a. Compute accumulated depreciation on December 31, 2019, before the change in depreciation method. Note: Carry all decimals in calculations; round final answers to the nearest dollar. Accumulated depreciation, December 31, 2019 $ 106,000 × b. Prepare the journal entry for depreciation expense in 2020. Date Account Name Dr. Cr. Dec. 31, 2020 Depreciation Expense 13,750 x Accumulated Depreciation 13,750 x Check

Recording a Change in Depreciation Method Southern Corporation has been depreciating equipment over a 10-year life using the sum-of-the- years'-digits method. The equipment was acquired January 1, 2016, and cost $68,000 (estimated residual value, $13,000). The company decided to change to straight-line depreciation, effective at the beginning of 2020, with no change in the estimated useful life or the residual value. The annual accounting period ends December 31. Required a. Compute accumulated depreciation on December 31, 2019, before the change in depreciation method. Note: Carry all decimals in calculations; round final answers to the nearest dollar. Accumulated depreciation, December 31, 2019 $ 106,000 × b. Prepare the journal entry for depreciation expense in 2020. Date Account Name Dr. Cr. Dec. 31, 2020 Depreciation Expense 13,750 x Accumulated Depreciation 13,750 x Check

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.5E: Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for...

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