**Journal Entry Adjustment for Account Balances**Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2022. *(If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)***Table Layout:**- **Account Titles and Explanation** (Input fields to specify account titles and detailed explanation)- **Debit** (Input fields to specify debit amounts)- **Credit** (Input fields to specify credit amounts)This section is designed to help students understand how to adjust accounting entries based on changes in asset lifespan estimates. In 1993, Concord Company completed the construction of a building at a cost of $2,100,000 and first occupied it in January 1994. It was estimated that the building would have a useful life of 40 years and a salvage value of $63,200 at the end of that time.Early in 2004, an addition to the building was constructed at a cost of $525,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $21,000.In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Annual depreciation to be charged, beginning with 2022 24435 Workings: Cost…

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2022. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2022. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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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