Brief Exercise 4-9 (Algo) Determine the adjustment for depreciation (LO4-3) Beaver Construction purchases new equipment for $29,400 cash on April 1, 2026. At the time of purchase, the equipment is expected to be used in operations for 5 years (60 months) and has no resale or scrap value at the end. Beaver depreciates equipment evenly over the 60 months ($490 per month). The balance of Accumulated Depreciation at the beginning of 2026 is $0. Determine the accounts to be adjusted on December 31, the amount of the adjustment, and the ending balances. Assume no adjustments were previously made during the year. Accumulated Depreciation Depreciation Expense January 1 Beginning balance $ 0 $ 0 December 31 Adjustment December 31 Balance after adjustment

Brief Exercise 4-9 (Algo) Determine the adjustment for depreciation (LO4-3) Beaver Construction purchases new equipment for $29,400 cash on April 1, 2026. At the time of purchase, the equipment is expected to be used in operations for 5 years (60 months) and has no resale or scrap value at the end. Beaver depreciates equipment evenly over the 60 months ($490 per month). The balance of Accumulated Depreciation at the beginning of 2026 is $0. Determine the accounts to be adjusted on December 31, the amount of the adjustment, and the ending balances. Assume no adjustments were previously made during the year. Accumulated Depreciation Depreciation Expense January 1 Beginning balance $ 0 $ 0 December 31 Adjustment December 31 Balance after adjustment

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 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...

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