Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 11, Problem 9P
During 2019, Ryel Company’s controller asked you to prepare correcting journal entries for the following three situations:
- 1. Machine A was purchased for $50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the
Accumulated Depreciation account has a balance of $25,000. The estimated residual value remains at $5,000, but the service life is now estimated to be 1 year longer than estimated originally. - 2. Machine B was purchased for $40,000 on January 1, 2017. It had an estimated residual value of $5,000 and an estimated service life of 10 years. it has been
depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. - 3. Machine C was purchased for $20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is $2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value.
Required:
Prepare any necessary correcting journal entries for each situation. Also prepare the
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During 2019, Ryel Company’s controller asked you to prepare correcting journal entries for the following three situations:
1.
Machine A was purchased for $50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of $25,000. The estimated residual value remains at $5,000, but the service life is now estimated to be 1 year longer than estimated originally.
2.
Machine B was purchased for $40,000 on January 1, 2017. It had an estimated residual value of $5,000 and an estimated service life of 10 years. It has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method.
3.
Machine C was purchased for $20,000 on January 1, 2018. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is $2,000 and the estimated service life is 5 years. The…
On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
On December 29, 2021, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation.
On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated
depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line
depreciation.
Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop-
down menus and entering the dollar amounts in the debit or credit columns.
View transaction list
Journal entry worksheet
1
On December 29, 2021, Patel Products, Inc., sells a delivery van that cost
$20,000. The equipment had accumulated depreciation of $16,000 at
December 31, 2020. Annual depreciation on this equipment is $2,000
computed using straight-line depreciation.
Note: Enter debits before credits.
Date
Dec. 29
General Journal
Debit
Credit
Chapter 11 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 11 - Briefly explain the meaning of the four factors...Ch. 11 - Prob. 2GICh. 11 - Would it be desirable to require all companies to...Ch. 11 - What is the depredation base?Ch. 11 - Prob. 5GICh. 11 - A company should use an accelerated depreciation...Ch. 11 - Prob. 7GICh. 11 - Prob. 8GICh. 11 - Prob. 9GICh. 11 - Prob. 10GI
Ch. 11 - Under U.S. GAAP, in a year in which the fair value...Ch. 11 - Prob. 12GICh. 11 - Prob. 13GICh. 11 - Compare the group and composite methods of...Ch. 11 - Prob. 15GICh. 11 - Describe the accounting for changes and...Ch. 11 - Prob. 17GICh. 11 - Prob. 18GICh. 11 - Explain the meaning of an impaired asset and...Ch. 11 - Prob. 20GICh. 11 - Prob. 21GICh. 11 - Prob. 22GICh. 11 - (Appendix 11.1) Why might depreciation on a...Ch. 11 - A method that excludes residual value from the...Ch. 11 - Vorst depreciates Asset A on the...Ch. 11 - Using the sum-of-the-years-digits method, how much...Ch. 11 - Vorst depreciates Asset C by the straight-line...Ch. 11 - A machine with a 4-year estimated useful life and...Ch. 11 - At the end of the expected useful life of a...Ch. 11 - The composite depreciation method: a. is applied...Ch. 11 - On July 1, 2018, Mundo Corporation purchased...Ch. 11 - A fixed asset with a 5-year estimated useful life...Ch. 11 - Crowder Company acquired a tract of land...Ch. 11 - Susquehanna Company purchased an asset at the...Ch. 11 - Akron Incorporated purchased an asset at the...Ch. 11 - Albany Corporation purchased equipment at the...Ch. 11 - Utica Machinery Company purchases an asset for...Ch. 11 - In Year 1, Utica Machinery Company uses the asset...Ch. 11 - At the beginning of Year 1, Herkimer Co....Ch. 11 - At the end of Year 1, Herkimer Co. sells two...Ch. 11 - Buffalo, Inc., uses composite depreciation for its...Ch. 11 - Prob. 9RECh. 11 - Assume the same information as in RE11-3, except...Ch. 11 - Oneonta Co. owns equipment with a cost of 300,000...Ch. 11 - At the beginning of the current year, Andy Company...Ch. 11 - Prob. 13RECh. 11 - (Appendix 11.1) Auburn Company purchased an asset...Ch. 11 - Depreciation Methods Gruman Company purchased a...Ch. 11 - Depreciation Methods Sorter Company purchased...Ch. 11 - Depreciation Methods Nickle Company purchased...Ch. 11 - Determination of Acquisition Cost On January 1,...Ch. 11 - Comprehensive: Acquisition, Subsequent...Ch. 11 - Prob. 6ECh. 11 - Loban Company purchased four cars for 9,000 each...Ch. 11 - Wilcox Company acquires four machines that have...Ch. 11 - Lightning Delivery Company purchased a new...Ch. 11 - Hathaway Company purchased a copying machine for...Ch. 11 - On May 10, 2019, Horan Company purchased equipment...Ch. 11 - Reveille, Inc., purchased Machine #204 on April 1,...Ch. 11 - Bailand Company purchased a building for 210,000...Ch. 11 - On January 1, 2019, Barbosa Company purchased a...Ch. 11 - On January 1, 2015, Vallahara Company purchased...Ch. 11 - Swann Company sold a delivery truck on April 1,...Ch. 11 - On July 1, 2019, Osceola Company retired a metal...Ch. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - (Appendix 11.1) Depreciation for Financial...Ch. 11 - Depreciation Methods Winsey Company purchased...Ch. 11 - Depreciation Methods Lord Company purchased a...Ch. 11 - Depreciation Methods Sayers Company purchased a...Ch. 11 - Cost of Asset and Depreciation Method Heist...Ch. 11 - Group and Composite Depreciation Chcadle Company...Ch. 11 - Borrell Company purchased four delivery trucks on...Ch. 11 - Dinnell Company owns the following assets: In the...Ch. 11 - Kam Company purchased a machine on January 2,...Ch. 11 - During 2019, Ryel Companys controller asked you to...Ch. 11 - Petes Petroleum, Inc., an SEC registrant with a...Ch. 11 - On January 1, 2014, Borstad Company purchased...Ch. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Hunter Company purchased a light truck on January...Ch. 11 - Logan Corporation, a manufacturer of steel...Ch. 11 - On January 2, 2019, Brock Corporation purchased a...Ch. 11 - On December 31, 2019, Vail Company owned the...Ch. 11 - Soon after December 31, 2019, the auditor...Ch. 11 - Prob. 19PCh. 11 - Pell Corporations Property, Plant, and Equipment...Ch. 11 - Prob. 21PCh. 11 - Prob. 1CCh. 11 - Prob. 2CCh. 11 - Straight-Line and Composite Depreciation Portland...Ch. 11 - Depreciation continues to be one of the most...Ch. 11 - The following two statements concern depreciation:...Ch. 11 - Prob. 6C
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