Riverbed Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5 years; salvage value, $14,500 Building, estimated service life, 30 years; no salvage value $536,500 $669,000 The equipment has been depreciated using the sum-of-the-years digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method. (a) (b) Prepare the general journal entry to record depreciation expense for the equipment in 2021. Prepare the journal entry to record depreciation expense for the building in 2021.

Riverbed Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5 years; salvage value, $14,500 Building, estimated service life, 30 years; no salvage value $536,500 $669,000 The equipment has been depreciated using the sum-of-the-years digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method. (a) (b) Prepare the general journal entry to record depreciation expense for the equipment in 2021. Prepare the journal entry to record depreciation expense for the building in 2021.

Name: Riverbed Cole Inc. acquired the following assets in January of 2018.E
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Description: Riverbed Cole Inc. acquired the following assets in January of 2018.Equipment, estimated service life, 5 years; salvage value, $14,500Building, estimated service life, 30 years; no salvage value$536,500$669,000The equipment has been depreciated usin

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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