Ivanhoe Ltd. purchased a piece of equipment on January 1, 2019, for $1,275,000. At that time, it was estimated that the mad would have a 15-year life and no residual value. On December 31, 2023, Ivanhoe's controller found that the entry for depreciation expense was omitted in error in 2020. In addition, Ivanhoe planned to switch to double-declining-balance depreciation beca change in the pattern of benefits received, starting with the year 2023. Ivanhoe currently uses the straight-line method for depreciating equipment. Ivanhoe Ltd. follows IFRS. Prepare the general journal entries, if any, the accountant should make at December 31, 2023. Ignore income tax effects. (List alldebit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts. Round the rate of deprecition under double declingbalance method to 5 decimal places, ie. 13.33333%. Round answers to O decimal places, e.g. 5,125.)Date Account Titles and ExplanationDec. 31,2023Dec. 31,2023Dec. 31,2023(To correct for the omission of depreciation expense in2020)(To adjust for change in depreciation method)(To record depreciation expense)DebitCredit

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: Ivanhoe Ltd. purchased a piece of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Ivanhoe Ltd. purchased a piece of equipment on January 1, 2019, for $1,275,000. At that time, it was estimated that the mad would have a 15-year life and no residual value. On December 31, 2023, Ivanhoe's controller found that the entry for depreciation expense was omitted in error in 2020. In addition, Ivanhoe planned to switch to double-declining-balance depreciation beca change in the pattern of benefits received, starting with the year 2023. Ivanhoe currently uses the straight-line method for depreciating equipment. Ivanhoe Ltd. follows IFRS.

Prepare the general journal entries, if any, the accountant should make at December 31, 2023. Ignore income tax effects. (List all
debit entries before credit entries. Credit account titles are automatically indented when the 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. Round the rate of deprecition under double decling
balance method to 5 decimal places, ie. 13.33333%. Round answers to O decimal places, e.g. 5,125.)
Date Account Titles and Explanation
Dec. 31,
2023
Dec. 31,
2023
Dec. 31,
2023
(To correct for the omission of depreciation expense in
2020)
(To adjust for change in depreciation method)
(To record depreciation expense)
Debit
Credit

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