On January 1, 2018, Zale Company purchased a building for $560,000. The building was estimated to have a useful life of 30 years and no residual value and was depreciated using the straight-line method. In 2020, the company revised the estimated total useful life to 25 years and adjusted the residual to $7,000. In addition, in 2020, the company discovered that building improvements of $8,400 made in early 2019 were incorrectly expensed as repair expense. Disregard income tax considerations. a. Provide the journal entry to record the adjustment for the error discovered in 2020. Assume that the error is material to the company. b. Provide the journal entry in 2020 to record depreciation expense.
Recording Errors and Changes in Accounting Estimates
On January 1, 2018, Zale Company purchased a building for $560,000. The building was estimated to have a useful life of 30 years and no residual value and was
a. Provide the
b. Provide the journal entry in 2020 to record depreciation expense.
Note: Round your final answer to the nearest whole dollar. For example, enter 502 for 502.4 and enter 503 for 502.5.
Note: Record your credit accounts in alphabetical order using the first letter of the account name.
| Date | Account Name | Dr. | Cr. | |
|---|---|---|---|---|
| a. | Jan. 1, 2020 | AnswerCash, | Answer | Answer |
| AnswerCash, | Answer | Answer | ||
| Answer | Answer | |||
| b. | Dec. 31, 2020 | Answer | Answer | |
| Answer | Answer |
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