Prepare the appropriate adjusting entry for depreciation

Assignment Help Accounting Basics
Reference no: EM131008610

Wardell Company purchased a mini computer on January 1, 2009, at a cost of $40,000. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,000. On January 1, 2011, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900.

Required:

1. Prepare the appropriate adjusting entry for depreciation in 2011 to reflect the revised estimate.

2. Repeat requirement 1 assuming that the company uses the sum-of-the-years'-digits method instead of the straight-line method.

Reference no: EM131008610

Questions Cloud

Bronson industries reported a deferred tax liability : Determine the effect of the change and prepare the appropriate journal entry to record Bronson's income tax expense in 2011.
Briefly describe the accounting treatment for this change : The Peridot Company purchased machinery on January 2, 2009, for $800,000. A five-year life was estimated and no residual value was anticipated.
Find the equation of the least-squares line : Nevada, a western state not included in the data set, had a 1996 fourth-grade math pro?ciency of 14%. What would you predict for Nevada's 2000 eighth- grade math pro?ciency percentage? How does your prediction compare to the actual eighth-grade va..
Determining the foreclosure rates : According to recent reports, home foreclosures were up 47% in March 2008 compared to the previous year (realestate.msn.com; April 2008). The data show home foreclosure rates (as % change from the previous year) for a sample of cities in two region..
Prepare the appropriate adjusting entry for depreciation : Repeat requirement 1 assuming that the company uses the sum-of-the-years'-digits method instead of the straight-line method.
Draw the mechanism for the formation of the thermodynamic : Draw the mechanism for the formation of the thermodynamic and kinetic products of the reaction - The first retrosynthetic disconnection should give you two molecules with equal number of carbon atoms in the"skeleton".
Pension plan assets for a defined benefit pension plan : _____10. Pension plan assets for a defined benefit pension plan achieving a rate of return in excess of the amount anticipated.
Find the equation of the least-squares line : Construct a scatterplot of y = percentage who said they were more likely to purchase and x = grade. Does there appear to be a linear relationship between x and y? Find the equation of the least-squares line.
Recent criticism of the sugar content : A food company is concerned about recent criticism of the sugar content of their children's cereals. The data show the sugar content (as a percentage of weight) of several national brands of children's and

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prevent the immediate unlawful imposition

Which of the following defenses allows a person to use whatever force reasonably appears to be necessary to prevent the immediate unlawful imposition of harm to himself

  Homer company expects credit sales for january to be 50000

homer company expects credit sales for january to be 50000. cash sales are expected to be 30000. the company expects

  Worksheet eliminations in journal entry

Prepare all worksheet eliminations in journal entry form necessary to consolidate Crain and Downey at December 31, 2005. Prepare the consolidation worksheet for Crain and Downey at December 31, 2005.

  Calculate the present value of the depreciation tax shield

calculate the present value of the depreciation tax shield for an asset in the 3-year class life costing 100000.

  Periodic inventory system and the lifo inventory cost method

Reuschel uses a periodic inventory system and the LIFO inventory cost method.

  Calculate the initial tax imposed on black pearl

The board of directors of BLACK Pearl, Inc., a private foundation, consists of Alice, Beth, and Carlos. They vote unanimously to provide a $250000 grant to Mark, their business associate.

  The organization puts on three different fairs each year -

the organization puts on three different fairs each year - one in february one in june and one in november. the fair

  Impairment testing purpose

How should Home Computer classify (for impairment testing purposes) the assets to be scrapped in the video monitor operations and the assets to be sold in the printer manufacturing operations at March 31, 2002?

  In the land securities group case study use the

in the land securities group case study use the information to estimate and summarize the effects of using a the cost

  What tools can be used for financial statement analysis

what tools can be used for financial statement analysis? what do these tools tell you about financial performance? what

  According to the companys records the conversion cost in

according to the companys records the conversion cost in beginning work in process inventory was 79893 at the beginning

  What are the tax implications to a holder of a special

what are the tax implications to a holder of a special power of appointment? they are subject to the annual 13000 de

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