Waterway Company changed depreciation methods in 2020 from double-declining-balance to straight-line. Depreciation prior to 2020 under double-declining-balance was $89,100, whereas straight-line depreciation prior to 2020 would have been $51,400. Waterway's depreciable assets had a cost of $254,800 with a $39,300 salvage value, and an 8-year remaining useful life at the beginning of 2020. Prepare the 2020 journal entry related to Waterway's depreciable assets (equipment). (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) Account Titles and Explanation Debit Credit
Waterway Company changed depreciation methods in 2020 from double-declining-balance to straight-line. Depreciation prior to 2020 under double-declining-balance was $89,100, whereas straight-line depreciation prior to 2020 would have been $51,400. Waterway's depreciable assets had a cost of $254,800 with a $39,300 salvage value, and an 8-year remaining useful life at the beginning of 2020. Prepare the 2020 journal entry related to Waterway's depreciable assets (equipment). (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) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject :- Account
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Waterway Company changed depreciation methods in 2020 from double-declining-balance to straight-line. Depreciation prior to
2020 under double-declining balance was $89,100, whereas straight-line depreciation prior to 2020 would have been $51,400.
Waterway's depreciable assets had a cost of $254,800 with a $39,300 salvage value, and an 8-year remaining useful life at the
beginning of 2020.
Prepare the 2020 journal entry related to Waterway's depreciable assets (equipment). (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)
Credit
Account Titles and Explanation
Debit
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