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

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 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		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 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

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