Machinery purchased for $47,800 by Bramble Corp. on January 1, 2018, was originally estimated to have an 8-year useful life with residual value of $3,000. Depreciation has been entered for five years on this basis. In 2023, it is determined that the total estimate useful life (including 2023) should have been 10 years, with a residual value of $3,600 at the end of that time. Assume straight-line depreciation and that Bramble uses IFRS for financial statement purposes. (a) Prepare the entry that is required to correct the prior years' depreciation, if any. (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. List debit entry before credit entry) Account Titles and Explanation Debit Credit
Machinery purchased for $47,800 by Bramble Corp. on January 1, 2018, was originally estimated to have an 8-year useful life with residual value of $3,000. Depreciation has been entered for five years on this basis. In 2023, it is determined that the total estimate useful life (including 2023) should have been 10 years, with a residual value of $3,600 at the end of that time. Assume straight-line depreciation and that Bramble uses IFRS for financial statement purposes. (a) Prepare the entry that is required to correct the prior years' depreciation, if any. (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. List debit entry before credit entry) Account Titles and Explanation Debit Credit
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.5E: Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for...
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![Machinery purchased for $47,800 by Bramble Corp. on January 1, 2018, was originally estimated to have an 8-year useful life with a
residual value of $3,000. Depreciation has been entered for five years on this basis. In 2023, it is determined that the total estimated
useful life (including 2023) should have been 10 years, with a residual value of $3,600 at the end of that time. Assume straight-line
depreciation and that Bramble uses IFRS for financial statement purposes.
(a)
Prepare the entry that is required to correct the prior years' depreciation, if any. (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. List debit entry before credit entry)
Account Titles and Explanation
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f852a5b-069d-4a50-921a-bb975c6db786%2F43c5bc24-906e-47ae-9f64-715f4e303183%2Fjwupjk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Machinery purchased for $47,800 by Bramble Corp. on January 1, 2018, was originally estimated to have an 8-year useful life with a
residual value of $3,000. Depreciation has been entered for five years on this basis. In 2023, it is determined that the total estimated
useful life (including 2023) should have been 10 years, with a residual value of $3,600 at the end of that time. Assume straight-line
depreciation and that Bramble uses IFRS for financial statement purposes.
(a)
Prepare the entry that is required to correct the prior years' depreciation, if any. (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. List debit entry before credit entry)
Account Titles and Explanation
Debit
Credit
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