! Required information [The following information applies to the questions displayed below.] Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024: Cost Accumulated Depreciation Book Value Land $ 88,000 0 $ 88,000 Building Equipment 453,000 256,000 $ (86,070) 366,930 207,400 Patent 215,000 129,000 (48,600) (86,000) ⚫ Stevens purchased all the assets at the beginning of 2022. ⚫ The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no residual value. ⚫ The equipment is depreciated over a 10-year service life using the straight-line method with an estimated residual value of $13,000. • The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years). Required: 1. For the year ended December 31, 2024 (third year), record the adjusting entry for depreciation expense for buildings and equipment. Land is not depreciated. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list View journal entry worksheet No Transaction General Journal 1 1 Depreciation Expense Accumulated Depreciation 2 2 Depreciation Expense Accumulated Depreciation Debit Credit
! Required information [The following information applies to the questions displayed below.] Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024: Cost Accumulated Depreciation Book Value Land $ 88,000 0 $ 88,000 Building Equipment 453,000 256,000 $ (86,070) 366,930 207,400 Patent 215,000 129,000 (48,600) (86,000) ⚫ Stevens purchased all the assets at the beginning of 2022. ⚫ The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no residual value. ⚫ The equipment is depreciated over a 10-year service life using the straight-line method with an estimated residual value of $13,000. • The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years). Required: 1. For the year ended December 31, 2024 (third year), record the adjusting entry for depreciation expense for buildings and equipment. Land is not depreciated. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list View journal entry worksheet No Transaction General Journal 1 1 Depreciation Expense Accumulated Depreciation 2 2 Depreciation Expense Accumulated Depreciation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![!
Required information
[The following information applies to the questions displayed below.]
Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024:
Cost
Accumulated
Depreciation
Book Value
Land
$ 88,000
0
$ 88,000
Building
Equipment
453,000
256,000
$ (86,070)
366,930
207,400
Patent
215,000
129,000
(48,600)
(86,000)
⚫ Stevens purchased all the assets at the beginning of 2022.
⚫ The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no
residual value.
⚫ The equipment is depreciated over a 10-year service life using the straight-line method with an estimated residual
value of $13,000.
• The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line
method.
•
Depreciation and amortization have been recorded for 2022 and 2023 (first two years).
Required:
1. For the year ended December 31, 2024 (third year), record the adjusting entry for depreciation expense for buildings and equipment.
Land is not depreciated.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
View transaction list View journal entry worksheet
No
Transaction
General Journal
1
1
Depreciation Expense
Accumulated Depreciation
2
2
Depreciation Expense
Accumulated Depreciation
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe06528ba-5b05-489a-a9a6-cc47a05c01db%2Fedc800c0-3587-4903-b8ad-1cf71175afb4%2Fd8m8i35_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024:
Cost
Accumulated
Depreciation
Book Value
Land
$ 88,000
0
$ 88,000
Building
Equipment
453,000
256,000
$ (86,070)
366,930
207,400
Patent
215,000
129,000
(48,600)
(86,000)
⚫ Stevens purchased all the assets at the beginning of 2022.
⚫ The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no
residual value.
⚫ The equipment is depreciated over a 10-year service life using the straight-line method with an estimated residual
value of $13,000.
• The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line
method.
•
Depreciation and amortization have been recorded for 2022 and 2023 (first two years).
Required:
1. For the year ended December 31, 2024 (third year), record the adjusting entry for depreciation expense for buildings and equipment.
Land is not depreciated.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
View transaction list View journal entry worksheet
No
Transaction
General Journal
1
1
Depreciation Expense
Accumulated Depreciation
2
2
Depreciation Expense
Accumulated Depreciation
Debit
Credit
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