Reference no: EM133169555
Question - The Company bought an equipment on 6/30/20x1 for 2,000,000. It has a useful life of 15 years and a residual value of 100,000. Its operating cycle is 1 year and it ends every December 31.
On 1/1/2023, the company revised its assumptions regarding the depreciation of equipment. Based on their research, they concluded that the equipment has a remaining useful life of 8 years, and its residual value should be 80,000 instead.
Assume that there were no errors in 2023, and that the change in accounting estimates in 2023 has been correctly implemented.
On 12/31/2024, the company made changes in accounting policies while the books are still open. One effect of such changes would be, the equipment that was being depreciated should have been treated as Prepaid Supplies instead, and such supplies would be evenly used for 3 years from the time it was purchased.
Required - How much would've Retained Earnings decreased if it treated the asset originally as supplies?
|
Calculate how much each person invested
: Caitlin, her spouse, and her mother jointly purchased an estate for $420,000. Calculate how much each person invested
|
|
How many canadian dollars would caitlin have lost
: If the exchange rate changed to C$1 = CHF0.9897, how many Canadian dollars would Caitlin have lost in these transactions
|
|
What is the main difference between a bond and a share
: What is the main difference between a bond and a share of stock? What is the advantage of issuing bonds instead of obtaining financing from the company's owners
|
|
Calculate the issue price of the bonds using a market rate
: Cold Lake Co. issues $1,000,000 of 10-year, 6% bonds on January 1, 2021. Calculate the issue price of the bonds using a market rate of 4% and record bond issue
|
|
How much would retained earnings decreased
: The Company bought an equipment on 6/30/20x1 for 2,000,000. How much would've Retained Earnings decreased if it treated the asset originally
|
|
Calculate the depreciation charges for the next four years
: A computer is bought for RM10,000. We decide to depreciate it at 10% per year, Calculate the depreciation charges for the next four years
|
|
Create journal entries to pay teagan
: Teagan earns $1,505 bi-weekly. Above and beyond the deductions for income tax, Create journal entries to pay Teagan
|
|
What is the average accounts payable for app
: APP always takes the discount but takes the full 15 days to pay its bills. What is the average accounts payable for APP
|
|
Calculate the capacity utilization for each machine
: The machines are each rated to produce 12 pads per minute. Each machine is operated 7.5 hours per day. Calculate the Capacity Utilization for each machine
|