Rungano Corporation is a global publisher of magazines, books, and music, as well as video collections, and it is one of the world's leading direct-mail marketers. Many direct-mail marketers use high-speed Didde press equipment to print their advertisements. These presses can cost more than $1 million. Assume that Rungano owns a Didde press acquired at an original cost of $400,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $50,000 estimated residual value. At the end of 2024, the press had been depreciated for eight years. On April 1, 2025, a decision was made, on the basis of improved maintenance procedures, that a total estimated useful life of 25 years and a residual value of $73,000 would be more realistic. The fiscal year ends December 31. Required: 1-a. Compute the amount of depreciation expense recorded in 2024. Answer is complete and correct. Depreciation expense $17,500 1-b. Compute the carrying amount of the printing press at the end of 2024. Answer is complete and correct. Carrying amount 260,000 2. Compute the amount of depreciation that should be recorded in 2025. × Answer is complete but not entirely correct. Depreciation expense 11,000 3. Prepare the adjusting entry to record depreciation expense at December 31, 2025. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) × Answer is complete but not entirely correct. No date General Journal 1 December 31, 20 Depreciation expense Accumulated depreciation Debit Credit 11,000 x 11,000 x
Rungano Corporation is a global publisher of magazines, books, and music, as well as video collections, and it is one of the world's leading direct-mail marketers. Many direct-mail marketers use high-speed Didde press equipment to print their advertisements. These presses can cost more than $1 million. Assume that Rungano owns a Didde press acquired at an original cost of $400,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $50,000 estimated residual value. At the end of 2024, the press had been depreciated for eight years. On April 1, 2025, a decision was made, on the basis of improved maintenance procedures, that a total estimated useful life of 25 years and a residual value of $73,000 would be more realistic. The fiscal year ends December 31. Required: 1-a. Compute the amount of depreciation expense recorded in 2024. Answer is complete and correct. Depreciation expense $17,500 1-b. Compute the carrying amount of the printing press at the end of 2024. Answer is complete and correct. Carrying amount 260,000 2. Compute the amount of depreciation that should be recorded in 2025. × Answer is complete but not entirely correct. Depreciation expense 11,000 3. Prepare the adjusting entry to record depreciation expense at December 31, 2025. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) × Answer is complete but not entirely correct. No date General Journal 1 December 31, 20 Depreciation expense Accumulated depreciation Debit Credit 11,000 x 11,000 x
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 1A: TruGreen is the worlds largest lawn and landscape company, employing over 10,000 employees and...
Related questions
Question
Answer for #2 and #3 cannot be the following:
11,000
12748.14
14692
8250
5610
Transcribed Image Text:Rungano Corporation is a global publisher of magazines, books, and music, as well as video collections, and it is one of the world's
leading direct-mail marketers. Many direct-mail marketers use high-speed Didde press equipment to print their advertisements. These
presses can cost more than $1 million. Assume that Rungano owns a Didde press acquired at an original cost of $400,000. It is being
depreciated on a straight-line basis over a 20-year estimated useful life and has a $50,000 estimated residual value. At the end of
2024, the press had been depreciated for eight years. On April 1, 2025, a decision was made, on the basis of improved maintenance
procedures, that a total estimated useful life of 25 years and a residual value of $73,000 would be more realistic. The fiscal year ends
December 31.
Required:
1-a. Compute the amount of depreciation expense recorded in 2024.
Answer is complete and correct.
Depreciation expense
$17,500
1-b. Compute the carrying amount of the printing press at the end of 2024.
Answer is complete and correct.
Carrying amount
260,000
2. Compute the amount of depreciation that should be recorded in 2025.
× Answer is complete but not entirely correct.
Depreciation expense
11,000
3. Prepare the adjusting entry to record depreciation expense at December 31, 2025. (If no entry is required for a transaction/event,
select "No journal entry required" In the first account field.)
× Answer is complete but not entirely correct.
No
date
General Journal
1
December 31, 20 Depreciation expense
Accumulated depreciation
Debit
Credit
11,000 x
11,000 x
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