Presented below is information related to equipment owned by Sheridan Company at December 31, 2020. Cost   $9,630,000 Accumulated depreciation to date   1,070,000 Expected future net cash flows   7,490,000 Fair value   5,136,000 Assume that Sheridan will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (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 amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the transaction on December 31, 2017 enter a debit amount enter a credit amount   enter an account title to record the transaction on December 31, 2017 enter a debit amount enter a credit amount         Part 2     Prepare the journal entry to record depreciation expense for 2021. (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 amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount   Part 3     The fair value of the equipment at December 31, 2021, is $5,457,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (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 amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the transaction on December 31, 2018 enter a debit amount enter a credit amount   enter an account title to record the transaction on December 31, 2018 enter a debit amount enter a credit amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Presented below is information related to equipment owned by Sheridan Company at December 31, 2020.

Cost   $9,630,000
Accumulated depreciation to date   1,070,000
Expected future net cash flows   7,490,000
Fair value   5,136,000


Assume that Sheridan will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years.

Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (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 amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31
enter an account title to record the transaction on December 31, 2017
enter a debit amount
enter a credit amount
 
enter an account title to record the transaction on December 31, 2017
enter a debit amount
enter a credit amount
 
 
 
 

Part 2

 
 
Prepare the journal entry to record depreciation expense for 2021. (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 amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
 

Part 3

 
 
The fair value of the equipment at December 31, 2021, is $5,457,000. Prepare the journal entry (if any) necessary to record this increase in fair value. (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 amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31
enter an account title to record the transaction on December 31, 2018
enter a debit amount
enter a credit amount
 
enter an account title to record the transaction on December 31, 2018
enter a debit amount
enter a credit amount
 

 

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