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Required: 1. Indicate the effects (accounts, amounts, and + for increase and for decrease) of the 2021 adjustment for depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Date December 31, 2021 Assets Accumulated Depreciation-Equipment (14,350) = Answer is complete but not entirely correct. Liabilities + Stockholders' Equity Depreciation Expense (14,350) X

Required: 1. Indicate the effects (accounts, amounts, and + for increase and for decrease) of the 2021 adjustment for depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Date December 31, 2021 Assets Accumulated Depreciation-Equipment (14,350) = Answer is complete but not entirely correct. Liabilities + Stockholders' Equity Depreciation Expense (14,350) X

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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E9-18 (Algo) Part 1 Required: 1. Indicate the effects (accounts, amounts, and + for increase and for decrease) of the 2021 adjustment for depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Date December 31, 2021 Assets Accumulated Depreciation-Equipment ✓(14,350) X = Answer is complete but not entirely correct. Liabilities Stockholders' Equity Depreciation Expense ✓(14,350) ×
Transcribed Image Text:E9-18 (Algo) Part 1 Required: 1. Indicate the effects (accounts, amounts, and + for increase and for decrease) of the 2021 adjustment for depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Date December 31, 2021 Assets Accumulated Depreciation-Equipment ✓(14,350) X = Answer is complete but not entirely correct. Liabilities Stockholders' Equity Depreciation Expense ✓(14,350) ×
! Required information E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2] [The following information applies to the questions displayed below.] Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 310,000 143,500 E9-18 (Algo) Part 1 $ 3,150 37,000 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $23,000 estimated residual value. The annual accounting period ends on December 31.
Transcribed Image Text:! Required information E9-18 (Algo) (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2] [The following information applies to the questions displayed below.] Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 310,000 143,500 E9-18 (Algo) Part 1 $ 3,150 37,000 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $23,000 estimated residual value. The annual accounting period ends on December 31.
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