Terry Wade, the new controller of Sheridan Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2020. His findings are as follows. Date AccumulatedDepreciation Useful lifein Years Salvage Value Type of Asset Acquired Cost 1/1/20 Old Proposed Old Proposed Building 1/1/14 $810,000 $114,900 40 50 $44,000 $43,900 Warehouse 1/1/15 110,000 21,180 25 20 4,100 13,820 Compute the revised annual depreciation on each asset in 2020. Building Warehouse Revised annual depreciation $enter a dollar amount $enter a dollar amount Prepare the entry to record depreciation on the building in 2020. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title for the journal entry on December 31 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31 enter a debit amount enter a credit amount
Terry Wade, the new controller of Sheridan Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2020. His findings are as follows. Date AccumulatedDepreciation Useful lifein Years Salvage Value Type of Asset Acquired Cost 1/1/20 Old Proposed Old Proposed Building 1/1/14 $810,000 $114,900 40 50 $44,000 $43,900 Warehouse 1/1/15 110,000 21,180 25 20 4,100 13,820 Compute the revised annual depreciation on each asset in 2020. Building Warehouse Revised annual depreciation $enter a dollar amount $enter a dollar amount Prepare the entry to record depreciation on the building in 2020. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title for the journal entry on December 31 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31 enter a debit amount enter a credit amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Terry Wade, the new controller of Sheridan Company, has reviewed the expected useful lives and salvage values of selected
Date
|
Accumulated
Depreciation |
Useful life
in Years |
Salvage Value
|
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Type of Asset
|
Acquired
|
Cost
|
1/1/20
|
Old
|
Proposed
|
Old
|
Proposed
|
|||||||
Building
|
1/1/14
|
$810,000 | $114,900 | 40 | 50 | $44,000 | $43,900 | |||||||
Warehouse
|
1/1/15
|
110,000 | 21,180 | 25 | 20 | 4,100 | 13,820 |
Compute the revised annual depreciation on each asset in 2020.
Building
|
Warehouse
|
|||
---|---|---|---|---|
Revised annual depreciation
|
$enter a dollar amount | $enter a dollar amount |
Prepare the entry to record depreciation on the building in 2020. (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 0 for the amounts.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
Dec. 31
|
enter an account title for the
|
enter a debit amount
|
enter a credit amount
|
enter an account title for the journal entry on December 31
|
enter a debit amount
|
enter a credit amount
|
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