Please answer the following question Must choose from the following LIST OF ACCOUNTS: Accumulated DepletionAccumulated Depreciation - AutomobilesAccumulated Depreciation - BuildingsAccumulated Depreciation - EquipmentAccumulated Depreciation - Furniture and FixturesAccumulated Depreciation - MachineryAccumulated Depreciation - VehiclesAccumulated Impairment Losses - BuildingAccumulated Impairment Losses - EquipmentAccumulated Impairment Losses - LandAccumulated Impairment Losses - MachineryAccumulated Impairment Losses - MineAccumulated Impairment Losses - PatentsAccumulated Impairment Losses - Tools and DiesAccumulated Impairment Losses - VehiclesAsset Retirement ObligationBuildingsCashCommon SharesContribution ExpenseCost of Goods SoldDeferred Revenue - Government GrantsDepreciation ExpenseEquipmentFurniture and FixturesGain on Disposal of AutomobilesGain on Disposal of BuildingGain on Disposal of EquipmentGain on Disposal of Furniture and FixturesGain on Disposal of MachineryGain on Disposal of VehiclesGain on Sale of LandInterest ExpenseInterest PavableInventoryInvestment PropertyLandLiability for Site RestorationLoss on Disposal of AutomobilesLoss on Disposal of BuildingLoss on Disposal of EquipmentLoss on Disposal of MachineryLoss on Disposal of VehiclesLoss on ExpropriationLoss on ImpairmentLoss on Sale of LandMachineryMineral ResourcesNo EntryNotes PayableOil PropertyRecovery of Loss from ImpairmentRepairs and Maintenance ExpenseRetained EarningsRevaluation Surplus (OCI)Revenue - Government GrantsRoyalty ExpenseVehicles Machinery purchased for $67,400 by Novak Corp. on January 1, 2018, was originally estimated to have an 8-year useful life with aresidual value of $5,000. Depreciation has been entered for five years on this basis. In 2023, it is determined that the total estimateduseful life (including 2023) should have been 10 years, with a residual value of $5,500 at the end of that time. Assume straight-linedepreciation and that Novak uses IFRS for financial statement purposes.(a)Your answer is correct.Prepare the entry that is required to correct the prior years' depreciation, if any. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts. List debit entry before credit entry.)Account Titles and Explanation(b)No EntryNo EntryeTextbook and MediaList of AccountsYour answer is correct.Account Titles and ExplanationDepreciation ExpenseDebitPrepare the entry to record depreciation for 2023. (Credit account titles are automatically indented when the amount is entered. Donot indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry beforecredit entry.)Accumulated Depreciation - MachineryDebitCredit4580Attempts: 1 of 3 usedCredit4580 Your answer is correct.Repeat part (b) assuming Novak uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and asalvage value of $0. In 2023, it is determined that the total estimated physical life (including 2023) should have been 11 years,with a salvage value of $400 at the end of that time. (Credit account titles are automatically indented when the amount is entered. Donot indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry beforecredit entry. Round answers to O decimal places, e.g. 5,275.)Account Titles and Explanation(d)Depreciation ExpenseAccumulated Depreciation - MachineryeTextbook and MediaList of AccountsDebit4559DebitCredit4559Repeat part (b) assuming Novak uses the double-declining-balance method of depreciation. (Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O forthe amounts. List debit entry before credit entry. Round answers to O decimal places, e.g. 5,275.)Account Titles and ExplanationCreditAttempts: 1 of 3 used

Name: Please answer the following question Must choose from the following LI
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Description: Please answer the following question Must choose from the following LIST OF ACCOUNTS: Accumulated DepletionAccumulated Depreciation - AutomobilesAccumulated Depreciation - BuildingsAccumulated Depreciation - EquipmentAccumulated Depreciation - Furnit

Depreciation is defined as the accounting method implemented to allocate the cost of a long-term…

Answered: Repeat part (b) assuming Novak uses the…

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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Please answer the following question

Must choose from the following LIST OF ACCOUNTS:

Accumulated Depletion

Accumulated Depreciation - Automobiles

Accumulated Depreciation - Buildings

Accumulated Depreciation - Equipment

Accumulated Depreciation - Furniture and Fixtures

Accumulated Depreciation - Machinery

Accumulated Depreciation - Vehicles

Accumulated Impairment Losses - Building

Accumulated Impairment Losses - Equipment

Accumulated Impairment Losses - Land

Accumulated Impairment Losses - Machinery

Accumulated Impairment Losses - Mine

Accumulated Impairment Losses - Patents

Accumulated Impairment Losses - Tools and Dies

Accumulated Impairment Losses - Vehicles

Asset Retirement Obligation

Buildings

Cash

Common Shares

Contribution Expense

Cost of Goods Sold

Deferred Revenue - Government Grants

Depreciation Expense

Equipment

Furniture and Fixtures

Gain on Disposal of Automobiles

Gain on Disposal of Building

Gain on Disposal of Equipment

Gain on Disposal of Furniture and Fixtures

Gain on Disposal of Machinery

Gain on Disposal of Vehicles

Gain on Sale of Land

Interest Expense

Interest Pavable

Inventory

Investment Property

Land

Liability for Site Restoration

Loss on Disposal of Automobiles

Loss on Disposal of Building

Loss on Disposal of Equipment

Loss on Disposal of Machinery

Loss on Disposal of Vehicles

Loss on Expropriation

Loss on Impairment

Loss on Sale of Land

Machinery

Mineral Resources

No Entry

Notes Payable

Oil Property

Recovery of Loss from Impairment

Repairs and Maintenance Expense

Retained Earnings

Revaluation Surplus (OCI)

Revenue - Government Grants

Royalty Expense

Vehicles

Machinery purchased for $67,400 by Novak Corp. on January 1, 2018, was originally estimated to have an 8-year useful life with a
residual value of $5,000. Depreciation has been entered for five years on this basis. In 2023, it is determined that the total estimated
useful life (including 2023) should have been 10 years, with a residual value of $5,500 at the end of that time. Assume straight-line
depreciation and that Novak uses IFRS for financial statement purposes.
(a)
Your answer is correct.
Prepare the entry that is required to correct the prior years' depreciation, if any. (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 debit entry before credit entry.)
Account Titles and Explanation
(b)
No Entry
No Entry
eTextbook and Media
List of Accounts
Your answer is correct.
Account Titles and Explanation
Depreciation Expense
Debit
Prepare the entry to record depreciation for 2023. (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 debit entry before
credit entry.)
Accumulated Depreciation - Machinery
Debit
Credit
4580
Attempts: 1 of 3 used
Credit
4580

Your answer is correct.
Repeat part (b) assuming Novak uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a
salvage value of $0. In 2023, it is determined that the total estimated physical life (including 2023) should have been 11 years,
with a salvage value of $400 at the end of that time. (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 debit entry before
credit entry. Round answers to O decimal places, e.g. 5,275.)
Account Titles and Explanation
(d)
Depreciation Expense
Accumulated Depreciation - Machinery
eTextbook and Media
List of Accounts
Debit
4559
Debit
Credit
4559
Repeat part (b) assuming Novak uses the double-declining-balance method of depreciation. (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 debit entry before credit entry. Round answers to O decimal places, e.g. 5,275.)
Account Titles and Explanation
Credit
Attempts: 1 of 3 used

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