Terry Wade, the neW controller of Monty Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Accumulated Useful life Date Depreciation (in Years) Salvage Value Type of Asset Acquired Cost Jan. 1, 2022 old Proposed Old Proposed Building Jan. 1, 2016 $812,000 $115,800 40 50 $40,000 $36,200 Warehouse Jan. 1, 2017 120,000 23,100 25 20 4,500 35,400 All assets are depreciated by the straight-line method. Monty Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) (a) Compute the revised annual depreciation on each asset in 2022. Building Warehouse Revised annual depreciation eTextbook and Media List of Accounts Save for Later (b) Prepare the entry to record depreciation on the building in 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31
Terry Wade, the neW controller of Monty Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Accumulated Useful life Date Depreciation (in Years) Salvage Value Type of Asset Acquired Cost Jan. 1, 2022 old Proposed Old Proposed Building Jan. 1, 2016 $812,000 $115,800 40 50 $40,000 $36,200 Warehouse Jan. 1, 2017 120,000 23,100 25 20 4,500 35,400 All assets are depreciated by the straight-line method. Monty Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) (a) Compute the revised annual depreciation on each asset in 2022. Building Warehouse Revised annual depreciation eTextbook and Media List of Accounts Save for Later (b) Prepare the entry to record depreciation on the building in 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...
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