Make journal entry necessary to record depreciation expense

Assignment Help Accounting Basics
Reference no: EM132808041

On January 1, 2011, McElroy Company purchased a building and equipment that have the following useful lives, residual values, and costs.

Building, 40-year estimated useful life, £50,000 residual value, £1,200,000 cost
Equipment, 12-year estimated useful life, £10,000 residual value, £130,000 cost

  • The building has been depreciated under the double-declining-balance method through 2014. In 2015, the company decided to switch to the straight-line method of depreciation. McElroy also decided to change the total useful life of the equipment to 9 years, with a residual value of £5,000 at the end of that time. The equipment is depreciated using the straight-line method.

Problem a) Prepare the journal entry(ies) necessary to record the depreciation expense on the building in 2015.

Problem b) Compute depreciation expense on the equipment for 2015.

Reference no: EM132808041

Questions Cloud

How do evaluatedesirability of replacing the industrial oven : Evaluated the desirability of replacing the industrial ovens. A gourmet cookie factory is considering the replacement of ten industrial ovens
Describes a hypothetical situation : How might you prepare for this and what might your options be in practice? You should underpin your response with supporting research on ‘acting and behaving
Case study in strategic financial planning : Data points are necessary for successful financial strategic planning to include capital efficiency and solvency to demonstrate profits made for investors
Challenges human resources manager of airline face : Explain the challenges the Human Resources Manager of the Airline would face if it was infiltrated by political challenges.
Make journal entry necessary to record depreciation expense : The building has been depreciated under the double-declining, Prepare the journal entry necessary to record the depreciation expense on the building in 2015.
Explain the evidence that supports the stated hypothesis : Postulate a hypothesis to explain the disappearance of giant insects during evolution? Explain the evidence that supports the stated hypothesis.
Fill internal executive and management positions : Few organizations are known to be prepared for the future changes in the industry landscape. The same observation is true of top companies where a small number
Reflections on mental health : A person looking at the camera Description automatically generatedAccording to the National Institute of Mental Health,
Determine what is the average inventory held during the year : Find what is the average inventory held during the year including safety stock if the store insists on a 2 days safety stock (assume 365 days a year)?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How is the building classified

On January 2, 2015, Lima Company committed a plan to sell its other building, How is the building classified and at what amount should be measured?

  Contribution to overhead as a percent of sales

The Footwear Department of Lee's Department Store had sales of $188,000, cost of goods sold of $132,500, indirect expenses of $13,250, and direct expenses of $27,500 for the current period. The Footwear Department's contribution to overhead as a p..

  What is profit of the sales agency for the month of March

Sales agency samples are useful until July 1, 2018 which, What is the profit of the sales agency for the month of March

  What is the basis for land B

Taxpayer exchanges land A for Land B. What is realized Gain? What is Recognized gain? What is the basis for land B

  How is this possibility reflected in the way we recognize

How is this possibility reflected in the way we recognize deferred tax assets?

  What is typically the starting point of the master budget

What is typically the starting point of the master budget How does the accuracy of this starting point affect the remaining budgets

  Compute the amount received for the bonds

Prepare an amortization schedule. Enter data in the schedule for only the first two interest periods. Use the effective interest rate method - Compute the amount received for the bonds.

  What is the average monthly rate of increase

If the two properties are priced today at $239,500 and $222,300, respectively, what is the average monthly rate of increase

  Determine the work in process inventory

Total manufacturing costs for the period 362,000 and Cost of goods manufactured 315,000. Determine the work in process inventory

  What is the difference between cash basis and accrual basis

Based on accrual accounting, which month should Henry record the inventory purchase (January or February)? How would he record the entry?

  Compute the operating margin and the total margin

Compute the current ratio and the number of days cash on hand Compute the number of days revenue in receivables Compute the operating margin and the total margin.

  Compute hardaway earnings per share for the year

Compute Hardaway's earnings per share for the year ended December 31, 2018. Hardaway Fixtures' balance sheet at December 31, 2017

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd