Green Company constructed a machine at a total cost of $76.50 million. Construction was completed at the end of 2020 and the machine was placed in service at the beginning of 2021. The machine was being depreciated over a 10-year life using the sum-of-the- years'-digits method. The residual value is expected to be $4 50 million. At the beginning of 2024, Green decided to change to the straight-line method. Required: 1. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2024? 2. Suppose Green has been using the straight-line method and switches to the sum-of-the-years-digits method. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2024? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2024? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). View transaction list View journal entry worksheet No Event General Journal Depreciation expense Accumulated depreciation Required 1 Required 2 > Debit Credit
Green Company constructed a machine at a total cost of $76.50 million. Construction was completed at the end of 2020 and the machine was placed in service at the beginning of 2021. The machine was being depreciated over a 10-year life using the sum-of-the- years'-digits method. The residual value is expected to be $4 50 million. At the beginning of 2024, Green decided to change to the straight-line method. Required: 1. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2024? 2. Suppose Green has been using the straight-line method and switches to the sum-of-the-years-digits method. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2024? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2024? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). View transaction list View journal entry worksheet No Event General Journal Depreciation expense Accumulated depreciation Required 1 Required 2 > Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Green Company constructed a machine at a total cost of $76.50 million. Construction was completed at the end of 2020 and the
machine was placed in service at the beginning of 2021. The machine was being depreciated over a 10-year life using the sum-of-the-
years'-digits method. The residual value is expected to be $4 50 million. At the beginning of 2024, Green decided to change to the
straight-line method.
Required:
1. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2024?
2. Suppose Green has been using the straight-line method and switches to the sum-of-the-years-digits method. Ignoring income
taxes, what journal entry(s) should Green record relating to the machine for 2024?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2024?
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).
View transaction list
View journal entry worksheet
No
Event
General Journal
Depreciation expense
Accumulated depreciation
Required 1
Required 2 >
Debit
Credit
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