On August 1, 2022, Pina Colada Corp. issued $493,200, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Pina Colada’s year-end is December 31. # Depreciation of Assets at Blossom CompanyVictor Mineli, the new controller of Blossom Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings:### Asset Details| Type of Asset | Date Acquired | Cost | Accumulated Depreciation (Jan. 1, 2022) | Useful Life (in years) | Salvage Value ||---------------|---------------|-------|---------------------------------------|------------------------|---------------|| | | | | Old | Proposed | Old | Proposed || Building | Jan. 1, 2014 | $941,000| $174,300 | 40 | 58 | $69,500| $35,300 || Warehouse | Jan. 1, 2017 | $164,000| $31,780 | 25 | 20 | $5,100 | $3,220 |### Depreciation Method- All assets are depreciated using the straight-line method.- Blossom Company uses a calendar year for preparing annual financial statements.- Management agreed to accept Victor’s proposed changes in useful life (total life, not remaining life).### Annual Depreciation Computation for 2022- **Building**: Revised annual depreciation is $18,285.- **Warehouse**: Revised annual depreciation is $8,600.### Journal Entry for Depreciation (Building)The entry to record the depreciation on the building for 2022 is as follows:| Account Titles and Explanation | Debit | Credit ||-----------------------------------------|----------|----------|| Depreciation Expense | $18,285 | || Accumulated Depreciation - Buildings | | $18,285 |Ensure to round all answers to 0 decimal places, e.g., 125.### Additional Resources- eTextbook and Media- List of AccountsThis analysis provides a clear view of asset management and accounting adjustments within an organizational framework.

Answered: On August 1, 2022, Pina Colada Corp.…

On August 1, 2022, Pina Colada Corp. issued $493,200, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Pina Colada’s year-end is December 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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