ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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Victor Minell, the new controller of Sheridan Company, has reviewed the expected useful lives and salvage values of selected
depreciable assets at the beginning of 2022. Here are his findings:
Type of Asset
Building
Warehouse
Date
Acquired
Jan 1, 20
Jan 1, 2017
Cost
$810,000
Revised annual depreciation $
eTextbook and Media
List of Accounts
Dec. 31
110,000
Compute the revised annual depreciation on each asset in 2022
Accumulated
Depreciation
Jan. 1, 2022
$153,200
Building
Date Account Titles and Explanation
Useful life
(in years)
Old Proposed
40
21,180 25
All assets are depreciated by the straight-line method. Sheridan Company 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.)
58
20
Warehouse
Salvage Value
Old
$44,000
Debit
4,100
Prepare the entry to record depreciation on the building in 2022. (Credit account…
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…
Lindy Weink, the new controller of Blossom Company, has reviewed the expected useful lives and residual values of selected
depreciable assets at December 31, 2024. (Depreciation for 2024 has not been recorded yet.) Her findings are as follows:
Type of Asset
Building
Equipment
(a)
Date Acquired
Jan, 1, 2009
Jan. 1, 2022
Building
Equipment
Cost
$800,300
D
125,270
$
$
After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straight-line method.
Blossom Company has a December 31 year end.
Total Useful Life in Years
Current Proposed
20
5
per year
30
For each asset, calculate the annual depreciation expense using the original estimated useful life and residual value.
Annual depreciation expense
per year
4
Residual Value
Current
$39,600
4,650
Proposed
$60,110
4,000
11
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