Victor Mineli, the new controller of Wildhorse Co., has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Date Accumulated Depreciation Useful life (in years) Salvage Value Type of Asset Acquired Cost Jan. 1, 2022 Old Proposed Old Proposed Building Jan. 1, 2014 $810,000 $153,200 40 58 $44,000 $41,800 Warehouse Jan. 1, 2017 114,000 21,600 25 20 6,000 18,900 All assets are depreciated by the straight-line method. Wildhorse Co. uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Compute the revised annual depreciation on each asset in 2022. Building Revised annual depreciation $ $ eTextbook and Media List of Accounts Warehouse Prepare the entry to record depreciation on the building in 2022. (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 Debit Credit
Victor Mineli, the new controller of Wildhorse Co., has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Date Accumulated Depreciation Useful life (in years) Salvage Value Type of Asset Acquired Cost Jan. 1, 2022 Old Proposed Old Proposed Building Jan. 1, 2014 $810,000 $153,200 40 58 $44,000 $41,800 Warehouse Jan. 1, 2017 114,000 21,600 25 20 6,000 18,900 All assets are depreciated by the straight-line method. Wildhorse Co. uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Compute the revised annual depreciation on each asset in 2022. Building Revised annual depreciation $ $ eTextbook and Media List of Accounts Warehouse Prepare the entry to record depreciation on the building in 2022. (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 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Victor Mineli, the new controller of Wildhorse Co., has reviewed the expected useful lives and salvage values of selected depreciable
assets at the beginning of 2022. Here are his findings:
Date
Accumulated
Depreciation
Useful life
(in years)
Salvage Value
Type of Asset
Acquired
Cost
Jan. 1, 2022
Old
Proposed
Old
Proposed
Building
Jan. 1, 2014
$810,000
$153,200
40
58
$44,000
$41,800
Warehouse
Jan. 1, 2017
114,000
21,600
25
20
6,000
18,900
All assets are depreciated by the straight-line method. Wildhorse Co. uses a calendar year in preparing annual adjusting entries and
financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is
total life, not remaining life.)
Compute the revised annual depreciation on each asset in 2022.
Building
Revised annual depreciation
$
$
eTextbook and Media
List of Accounts
Warehouse
Prepare the entry to record depreciation on the building in 2022. (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
Debit
Credit
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