Pina Co. purchased equipment for $422,400 which was estimated to have a useful life of 10 years with a salvage value of $11,200 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2026, it is determined that the total estimated life should be 15 years with a salvage value of $4,800 at the end of that time. (a) Prepare the entry (if any) to correct the prior years' depreciation. (b) Prepare the entry to record depreciation for 2026. (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 all debit entries before credit entries.)
Pina Co. purchased equipment for $422,400 which was estimated to have a useful life of 10 years with a salvage value of $11,200 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2026, it is determined that the total estimated life should be 15 years with a salvage value of $4,800 at the end of that time. (a) Prepare the entry (if any) to correct the prior years' depreciation. (b) Prepare the entry to record depreciation for 2026. (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 all debit entries before credit entries.)
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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![Pina Co. purchased equipment for $422,400 which was estimated to have a useful life of 10 years with a salvage value of $11,200 at
the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2026, it is determined that the total
estimated life should be 15 years with a salvage value of $4,800 at the end of that time.
(a)
Prepare the entry (if any) to correct the prior years' depreciation.
(b)
Prepare the entry to record depreciation for 2026.
(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 all debit entries before credit entries.)
No. Account Titles and Explanation
Debit
Credit
(a)
(b)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F255474ae-8081-4c9a-8090-1f2aec0b201e%2F789648a9-34a1-4e9f-bf5f-e62124102ee0%2Fsackg8m_processed.png&w=3840&q=75)
Transcribed Image Text:Pina Co. purchased equipment for $422,400 which was estimated to have a useful life of 10 years with a salvage value of $11,200 at
the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2026, it is determined that the total
estimated life should be 15 years with a salvage value of $4,800 at the end of that time.
(a)
Prepare the entry (if any) to correct the prior years' depreciation.
(b)
Prepare the entry to record depreciation for 2026.
(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 all debit entries before credit entries.)
No. Account Titles and Explanation
Debit
Credit
(a)
(b)
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