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Recording a Change in Depreciation Method Southern Corporation has been depreciating equipment over a 10-year life using the sum-of-the- years'-digits method. The equipment was acquired January 1, 2016, and cost $68,000 (estimated residual value, $13,000). The company decided to change to straight-line depreciation, effective at the beginning of 2020, with no change in the estimated useful life or the residual value. The annual accounting period ends December 31. Required a. Compute accumulated depreciation on December 31, 2019, before the change in depreciation method. Note: Carry all decimals in calculations; round final answers to the nearest dollar. Accumulated depreciation, December 31, 2019 $ 106,000 × b. Prepare the journal entry for depreciation expense in 2020. Date Account Name Dr. Cr. Dec. 31, 2020 Depreciation Expense 13,750 x Accumulated Depreciation 13,750 x Check

Recording a Change in Depreciation Method Southern Corporation has been depreciating equipment over a 10-year life using the sum-of-the- years'-digits method. The equipment was acquired January 1, 2016, and cost $68,000 (estimated residual value, $13,000). The company decided to change to straight-line depreciation, effective at the beginning of 2020, with no change in the estimated useful life or the residual value. The annual accounting period ends December 31. Required a. Compute accumulated depreciation on December 31, 2019, before the change in depreciation method. Note: Carry all decimals in calculations; round final answers to the nearest dollar. Accumulated depreciation, December 31, 2019 $ 106,000 × b. Prepare the journal entry for depreciation expense in 2020. Date Account Name Dr. Cr. Dec. 31, 2020 Depreciation Expense 13,750 x Accumulated Depreciation 13,750 x Check

FINANCIAL ACCOUNTING
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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Recording a Change in Depreciation Method Southern Corporation has been depreciating equipment over a 10-year life using the sum-of-the- years'-digits method. The equipment was acquired January 1, 2016, and cost $68,000 (estimated residual value, $13,000). The company decided to change to straight-line depreciation, effective at the beginning of 2020, with no change in the estimated useful life or the residual value. The annual accounting period ends December 31. Required a. Compute accumulated depreciation on December 31, 2019, before the change in depreciation method. Note: Carry all decimals in calculations; round final answers to the nearest dollar. Accumulated depreciation, December 31, 2019 $ 106,000 x b. Prepare the journal entry for depreciation expense in 2020. Date Account Name Dr. Cr. Dec. 31, 2020 Depreciation Expense 13,750 x Accumulated Depreciation 13,750 x Check
Transcribed Image Text:Recording a Change in Depreciation Method Southern Corporation has been depreciating equipment over a 10-year life using the sum-of-the- years'-digits method. The equipment was acquired January 1, 2016, and cost $68,000 (estimated residual value, $13,000). The company decided to change to straight-line depreciation, effective at the beginning of 2020, with no change in the estimated useful life or the residual value. The annual accounting period ends December 31. Required a. Compute accumulated depreciation on December 31, 2019, before the change in depreciation method. Note: Carry all decimals in calculations; round final answers to the nearest dollar. Accumulated depreciation, December 31, 2019 $ 106,000 x b. Prepare the journal entry for depreciation expense in 2020. Date Account Name Dr. Cr. Dec. 31, 2020 Depreciation Expense 13,750 x Accumulated Depreciation 13,750 x Check
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