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Terry Wade, the new controller of Ayayai Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date: Acquired Jan. 1, 2016 Jan. 1, 2017 Cost $800,000 100,000 Accumulated Depreciation Jan. 1, 2022 $114,750 Revised annual depreciation Compute the revised annual depreciation on each asset in 2022. Useful life (in Years) Old Proposed 40 19,200 25 Building 50 20 All assets are depreciated by the straight-line method. Ayayai Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Salvage Value Warehouse Old $35,000 4,000 Proposed $69,250 20,800 4

Terry Wade, the new controller of Ayayai Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date: Acquired Jan. 1, 2016 Jan. 1, 2017 Cost $800,000 100,000 Accumulated Depreciation Jan. 1, 2022 $114,750 Revised annual depreciation Compute the revised annual depreciation on each asset in 2022. Useful life (in Years) Old Proposed 40 19,200 25 Building 50 20 All assets are depreciated by the straight-line method. Ayayai Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Salvage Value Warehouse Old $35,000 4,000 Proposed $69,250 20,800 4

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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Terry Wade, the new controller of Ayayai Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date: Acquired Jan. 1, 2016 Jan, 1, 2017 Cost $800,000 100,000 Accumulated Depreciation Jan. 1, 2022 $114,750 19,200 Revised annual depreciation Compute the revised annual depreciation on each asset in 2022. Old Building Useful life (in Years) 40 25 Proposed 50 20 All assets are depreciated by the straight-line method. Ayayai Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Salvage Value Old Proposed $69,250 20,800 Warehouse $35,000 4,000 W
Transcribed Image Text:Terry Wade, the new controller of Ayayai Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date: Acquired Jan. 1, 2016 Jan, 1, 2017 Cost $800,000 100,000 Accumulated Depreciation Jan. 1, 2022 $114,750 19,200 Revised annual depreciation Compute the revised annual depreciation on each asset in 2022. Old Building Useful life (in Years) 40 25 Proposed 50 20 All assets are depreciated by the straight-line method. Ayayai Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Salvage Value Old Proposed $69,250 20,800 Warehouse $35,000 4,000 W
Prepare the entry to record depreciation on the building in 2022. (List all debit entries before credit entries. Credit account titles are automatically Indented when 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.) Date Account Titles and Explanation Dec. 31 Depletion Expense Accumulated Depletion Debit Credit
Transcribed Image Text:Prepare the entry to record depreciation on the building in 2022. (List all debit entries before credit entries. Credit account titles are automatically Indented when 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.) Date Account Titles and Explanation Dec. 31 Depletion Expense Accumulated Depletion Debit Credit
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