Neptune purchased a new storage facility on April 1, 2021. The new building cost $80,000. A new member of the accounting team recorded depreciation on the new facility using the sum-of-the-years (SYD) method. The manager was impressed with his hard work, since he appropriately used partial year depreciation and used the method correctly. However, she had to remind him Neptune uses the straight line method for buildings. Unfortunately, the mistake in method wasn't corrected before the financial statements were created. Critical Thinking Calculate each of the required ratios using the original values (before any changes) and the updated values (after your changes). At the time of the purchase, the operations manager estimated that the new facility would be used for 5 years and would have a $2,000 salvage value. What are the journal entries for this scenario?
Neptune purchased a new storage facility on April 1, 2021. The new building cost $80,000. A new member of the accounting team recorded
What are the
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