Last year, BOC purchased software for $10,000. The expected life of the software is 2 years and it has no expected salvage value. Now, it is December 31, the end of the fiscal year. No other entries were recorded for this software during the year. Which journal entry reflects the adjusting entry needed on December 31? a. Dr: Software Amortization Expense, 5,000; Cr: Software, 5,000. b. No entry is needed. c. Dr: Software Amortization Expense, 5,000; Cr: Cash, 5,000. d. Dr: Software Amortization Expense, 5,000; Cr: PP&E, 5,000. e. Dr: Software Amortization Expense, 5,000; Cr: Software Revenue, 5,000.

Last year, BOC purchased software for $10,000. The expected life of the software is 2 years and it has no expected salvage value. Now, it is December 31, the end of the fiscal year. No other entries were recorded for this software during the year. Which journal entry reflects the adjusting entry needed on December 31? a. Dr: Software Amortization Expense, 5,000; Cr: Software, 5,000. b. No entry is needed. c. Dr: Software Amortization Expense, 5,000; Cr: Cash, 5,000. d. Dr: Software Amortization Expense, 5,000; Cr: PP&E, 5,000. e. Dr: Software Amortization Expense, 5,000; Cr: Software Revenue, 5,000.

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...

See similar textbooks

Similar questions

The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was 100,000. No residual value is expected, the remaining estimated life is 10 years, and straight-line depreciation is used. b. All purchases of materials for construction contracts still in progress have been immediately expensed. It is discovered that the use of these materials was 10,000 during 2018 and 12,000 during 2019. c. Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, 40,000 of depreciation was accounted for in that manner. Production was 15,000 units during 2019, of which 3,000 remained in inventory at the end of the year. Assume there was no inventory at the beginning of 2019. Required: Prepare journal entries for the preceding errors discovered during 2020. Ignore income taxes.
Which of the following is not true about the MACRS depreciation system: A salvage value must be determined before depreciation percentages are applied to depreciable real estate. Residential rental buildings are depreciated over 27.5 years straight-line. Commercial real estate buildings are depreciated over 39 years straight-line. No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid-month for MACRS depreciation purposes.
Need answer the financial accounting question
Hi experts please answer the financial accounting question
On January 1, Masterson Supply purchased a small storage building for $20,400 to be used over a five-year period. The building has no residual value. Early in the fourth year, the storage building burned down. Record the retirement of the remaining book value of the storage building. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Need help answer the red box that are wrong. Thank you From the trial balance and the information given below., prepare annual adjusting entries. 1. The buildings have an estimated life of 30 years with no salvage value. Stright line method. 2. The equipment is depreciated at 10 % per year. 3. Insurance expires during the year 3170.00. 5. It is estimated that 12% of the accounts receivable will be uncollectable. 6. Salaries and wages wened but not paid by December 31, $3707. Thank you
Kindly help me with accounting questions
Wardell Company purchased a mini computer on January 1, 2019, at a cost of $40,000. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900.Required:1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate.2. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate, assuming that the company uses the sum-of-the-years’-digits method instead of the straight-line method.
During 20x7, the controller of the Sparrow Company asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 400,000 on January 1, 20x5. It had an estimated residual value of 50,000 and an estimated service life of 10 years. It has been depreciated under the double-declining-balance metgod for 2 years. Now, at the beginning of the third year, Sparrow hass decided to change to the straight-line method. 2. Machine B was purchased for 500,000 on January, 20x2. Straight line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 250,000. The estimated residual value remains at 50,000 but the service life is now estimated to be 1 year longer than estimated originally. 3. Machine C was purchased for 200,000 on January 20x6. Double-declinig-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 20,000 and the estimated service life is 5 years. The…
PLEASE PROVIDE CORRECT ANSWERS for missing fields in part B AND I WILL LIKE YOUR ANSWER. On January 1, 2020, a machine was purchased for $1,040,000 by Metlock Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Ivanhoe Inc. for 3 years on January 1, 2020, with annual rent payments of $260,000 due at the beginning of each year, starting January 1, 2020. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is unguaranteed.
Dimmu Company purchased a machine on January 1, 2021, at a cost of P 120.000. An additional P 50.000 was spent for installation, but this amount was charged erroneously to Repairs Expense and not discovered until 2013. The machine has a useful life of five years and a salvage value of P 20.000. As a result of the error, a. retained earnings at December 31, 2022, was understated by P 30,000, and 2022 income was overstated by P 6,000. b. retained earnings at December 31, 2022, was understated by P 38,000, and 2022 income was overstated by P 6,000. c. 2021 income was understated by P 50,000. d. retained earnings at December 31. 2022, was understated by P 30,000, and 2022 income was overstated by P 10,000.
At the end of the year the Investment in Bacolod account of the home office isP300,500. However, there are transactions discovered to have errors.•Bacolod branch bought equipment on June 1, 2020 costing P63,800 for thehome office's use and the policy is to record the asset in Bacolod's books.During that time the home office recorded the equipment and credited itsreciprocal account of its Bacolod branch.•The policy of the company regarding the equipment's depreciation is that ithas a life of 8 years with no salvage value and the straight-line method shouldbe used. No entry has been made by the home office and branch.•The home office ships merchandise to Bacolod amounting to P96,700. Bacolodrecorded the transaction as P97,600•Bacolod pays the home office's creditors in the amount of P32,400 and sends adebit memo to the home office.•Upon receipt of the debit memo, the home office debited its reciprocalaccount in the amount of P23,400 twice. What is the net adjustment of the home office…