Prepare the journal entry to record depreciation

Assignment Help Financial Accounting
Reference no: EM132787957

Question - PROPERTY PLANT AND EQUIPMENT - Qirana trading purchased equipment to be used in manufacturing. The purchase was made at the beginning of 2018 by paying cash of RM150,000. The equipment has an estimated residual value of RM10,000 and an expected useful life of 10 years. At the beginning of 2020, Qirana concluded that the total useful life of the equipment will be 8 years rather than 10, and that the residual value will be zero. Qirana uses the straight-line method for depreciation.

Required -

a. Prepare the journal entry to record depreciation on the equipment for 2019.

b. Prepare the journal entry to record depreciation on the equipment for 2020, including the effect of the changes in estimates.

c. Describe how and when a business should account for a change in the estimated useful life and/or residual value of a depreciable asset.

Reference no: EM132787957

Questions Cloud

Calculate the elastic potential energy stored in the spring : A spring with a spring constant of 8 N/m has a relaxed length of 1.00 m. It is then compressed to 0.60 m. Calculate the elastic potential energy stored in the s
What the image seeks to express or represent : Select any one image from the Visual Sources section in Chapter 8 (pages 462-474). In roughly 250 words, explain how the specific historical and cultural.
What the gain on sale of philippine treasury notes : What the gain on sale of Philippine Treasury Notes on December 1, 2020 is? On April 1, 2020, the company purchased as a temporary investment
Analyze anti-communist sentiments during the cold war era : Analyze anti-communist sentiments during the Cold War era, were these sentiments valid. If so, how? If not, why not? Explain if there are other examples.
Prepare the journal entry to record depreciation : Prepare the journal entry to record depreciation on the equipment for 2020, including the effect of the changes in estimates
What is the ball change in momentum : A 0.5 kg ball is kicked from rest and it achieves a velocity of 20 m/s. What is the ball's change in momentum? Show your work.
Find the speed of light in cm : Find the speed of light in cm/min, km/day and km/year. Show all work
What is the before-tax cost of debt for Olympic : Olympic sports have two issues of debt outstanding .one is a 9 % coupon bond with a face value of $20 million, What is the before-tax cost of debt for Olympic
What will be the entry to record the payment of salaries : What will be the entry to record the payment of salaries on this payday? A company shows a balance in Salaries Payable of $40,000 at the end of the month.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What amount will torino report as anon-recurring loss

Assuming the corporate income tax rate is 30%, what amount will Torino report as anon-recurring loss on its income statement for 2018?

  Current market value of the firm

What is the current market value of the firm? What will the firm's market value be after the announcement of the new debt issue? (Note that total market value of debt will be D0 + D1 and the interest costs that must be subtracted from EBIT when ca..

  Unfavorable spending and volume variances be affected

A department's three-variance overhead standard costing system reported volume variances and unfavorable spending. The activity level selected for allocating overhead to product was based on 80 percent of practical capacity

  Discuss about the long-term investments

Classify each of the following accounts taken from Raman Company's balance sheet. Accounts Payable , Accounts Receivable , Cash etc.

  Compute the current weighted average cost of capital

QM Industries is a large publicly listed company is the market leader in robotic technology. The company is looking to set up a manufacturing plant overseas to produce a new line of domestic robots. This will be a six year project. Calculate the proj..

  Find what are option market value and the price of the stock

Flanagan Company's call option is $15, its exercise value is $22, and its time value is $5. What are the option's market value and the price of the stock?

  What result to both ann and brenda

Shortly thereafter, Brenda sells 10 shares to Aquarius for $200.00 in an exchange that had been agreed to in the preceding year. What result to both Ann and Brenda? What if Brenda sold 11 shares versus 10 shares?

  What is the level of? brenmars inventories

If Brenmar reduces its average collection period to 25 ?days, what will be its new level of accounts? receivable? What is the level of? Brenmar's inventories

  Question use the given information to complete phillip and

question use the given information to complete phillip and claire dunphys 2012 federal income tax return. if

  Gross cash receipts less cash disbursements

In eight years, Kent Duncan will retire. He is exploring the possibility of opening a self-service car wash. The car wash could be managed in the free time he has available from his regular occupation, and it could be closed easily when he retires. A..

  Define what corporate governance issues does this present

If managers are compensated based on reported profit, how might they strategically structure the split-off. What corporate governance issues does this present

  What is terry expected profit under the proposed credit

The cost of goods sold is 80% of the selling price. Per $100 of current sales, what is Terry's expected profit under the proposed credit standards?

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