E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2] [The following information applies to the questions displayed below.] Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 220,000 101,500 9-18 (Algo) Part 1 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $17,000 estimated residual value. The annual accounting period ends on December 31. Date December 31, 2021 Required: 1. Indicate the effects (accounts, amounts, and + for increase and for decrease) of the 2021 adjustment for depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Assets $ 2,550 31,000 = Liabilities Stockholders
E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2] [The following information applies to the questions displayed below.] Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 220,000 101,500 9-18 (Algo) Part 1 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $17,000 estimated residual value. The annual accounting period ends on December 31. Date December 31, 2021 Required: 1. Indicate the effects (accounts, amounts, and + for increase and for decrease) of the 2021 adjustment for depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Assets $ 2,550 31,000 = Liabilities Stockholders
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2]
[The following information applies to the questions displayed below.]
Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed
the following balances:
Equipment
Accumulated Depreciation (beginning of the year)
During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance:
Routine maintenance and
airs on the quipment
Major overhaul of the equipment that improved efficiency
E9-18 (Algo) Part 1
$ 220,000
101,500
The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $17,000 estimated
residual value. The annual accounting period ends on December 31.
Date
December 31, 2021
Required:
1. Indicate the effects (accounts, amounts, and + for increase and - for decrease) of the 2021 adjustment for depreciation of the
manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations.
Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)
Assets
$ 2,550
31,000
=
=
Liabilities
+
Stockholders](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f7ddc63-0476-43d4-9b2d-15e8070b202a%2Fd3a0fabf-c091-4d2a-bcce-886dee352f46%2F5k0okqc_processed.png&w=3840&q=75)
Transcribed Image Text:E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2]
[The following information applies to the questions displayed below.]
Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed
the following balances:
Equipment
Accumulated Depreciation (beginning of the year)
During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance:
Routine maintenance and
airs on the quipment
Major overhaul of the equipment that improved efficiency
E9-18 (Algo) Part 1
$ 220,000
101,500
The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $17,000 estimated
residual value. The annual accounting period ends on December 31.
Date
December 31, 2021
Required:
1. Indicate the effects (accounts, amounts, and + for increase and - for decrease) of the 2021 adjustment for depreciation of the
manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations.
Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)
Assets
$ 2,550
31,000
=
=
Liabilities
+
Stockholders
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