Swindall Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expenseat the end of each calendar year. On January 11, 2017, the company purchased a machine costing $117,000. The machine's useful lifewas estimated to be 12 years with an estimated residual value of $17,200. Depreciation for partial years is recorded to the nearest fullmonth.In 2021, after almost five years of experience with the machine, management decided to revise its estimated life from 12 years to 20years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recordingannual depreciation expense for the year ended December 31, 2021.a. Prepare journal entries in chronological order for the given events, beginning with the purchase of the machinery on January 11,2017. Show separately the recording of depreciation expense in 2017 through 2021. (Do not round intermediate calculations. Roundyour final answers to the nearest whole number. If no entry is required for a transaction/event, select "No journal entry required"in the first account field.)

a. Prepare journal entries in chronological order for the given events, beginning with the purchase of the machinery on January 11, 2017. Show separately the recording of depreciation expense in 2017 through 2021. (Do not round intermediate calculations. Round your final answers to the nearest whole number. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. Prepare journal entries in chronological order for the given events, beginning with the purchase of the machinery on January 11, 2017. Show separately the recording of depreciation expense in 2017 through 2021. (Do not round intermediate calculations. Round your final answers to the nearest whole number. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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