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) Type of Asset Acquired Cost Jan. 1, 2022 Old Proposed Old Salvage Value Proposed Building Warehouse Jan. 1, 2014 Jan. 1, 2017 $810,000 $153,200 40 58 $44,000 $41,800 114,000 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 Warehouse Revised annual depreciation $ $ eTextbook and Media List of Accounts 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) Type of Asset Acquired Cost Jan. 1, 2022 Old Proposed Old Salvage Value Proposed Building Warehouse Jan. 1, 2014 Jan. 1, 2017 $810,000 $153,200 40 58 $44,000 $41,800 114,000 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 Warehouse Revised annual depreciation $ $ eTextbook and Media List of Accounts 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

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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