What journal entry should dolley record

Assignment Help Accounting Basics
Reference no: EM131804040

Question - Dolley Inc. constructed a machine at a total cost of $60 million. Construction was completed at the end of 2007 and the machine was placed in service at the beginning of 2008. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value will not change from the original $4 million. At the beginning of 2011, Dolley decided to change to the straight-line method.

Required:

1. Ignoring income taxes, what journal entry(s) should Dolley record relating to the machine for 2011?

2. Suppose Green has been using the straight-line method and switches to the sum-of-the-years'-digits method. Ignoring income taxes, what journal entry(s) should Dolley record relating to the machine for 2011?

Reference no: EM131804040

Questions Cloud

What is the effect on income : Incremental variable overhead cost is $42 per computer chip. What is the effect on income if Wilder decides to make the computer chips
What sort of segmentation does readymade use : Readymade Markets itself as a magazine catering to GenNest, the group of consumers ages 25 to 35 who are just settling down after college.
How is process mapping essential to the foundation : How is process mapping essential to the foundation of your operational and supply chain management structures?
Discuss five group of the benefits that are mandatory issues : Identify and discuss the 5 groups of those benefits that are mandatory issues for negotiations. Provide an example of each.
What journal entry should dolley record : Dolley Inc. constructed a machine at a total cost of $60 million. Ignoring income taxes, what journal entry(s) should Dolley record relating to the machine
How to improve pandgs strategic position going forward : Proctor and Gamble differentiates itself from competitors by offering branded consumer product goods with distinct features and attributes.
Manage and organize the data : In what ways could a researcher manage and organize the data?
Describe the actual transactions : Briefly describe the type of items that are not included in the body of the statement of cash flows, describe the actual transactions
Difference between marketing research and a DSS : Explain the concept and purpose of a marketing decision support system. A decision support system (DSS) makes data instantly available to marketing managers.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Explain the company utilities cost

Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost.

  What is the carrying value of the bonds

What is the carrying value of the bonds on June 30, 2009?

  The corner bakery has a bond issue outstanding that

the corner bakery has a bond issue outstanding that matures in 7 years. the bonds pay interest semi-annually. currently

  Based on the ratios computed in requirements a and b

Based on the ratios computed in Requirements a and b, did Hershey's performance get better or worse from 2009 to 2010?

  Evaluating the financial condition of the company

Suggest the financial ratio that most financial analysts would use to evaluate the financial condition of the company. Provide support for your rationale.

  Is behavior regarding cost information provided to unethical

Farmer Frank's produces items from local farm products anddistributes them to supermarkets. Is Margaret's behavior regarding the cost information she provided to Susan unethical? Explain your answ

  Problem on accruing a loss contingency

Contributing to the loss were (a) a penalty of $4 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2011 and (b) an estimated loss of $5 million from accruing a loss contingency. The loss will be ta..

  Prepare journal entries for the following transactions

An auto- body repair shop has been in business for 23 years. Prepare journal entries for the following transactions, which occurred during a recent month, and determine the auto- body shop's preliminary net income. Signed a long- term note and receiv..

  The fasb and the iasb allowed companies

Recently, the FASB and the IASB allowed companies the option of recognizing in their financial statements the fair values of their long-term debt.

  How do gods justice and mercy

How do Gods justice and mercy, the discussion by raising the application or the implications of a concept

  A companys history indicates that 20 of its sales are for

a companys history indicates that 20 of its sales are for cash and the rest are on credit. collections on credit sales

  Prepare net position section of statement of net position

A piece of equipment with a carrying value of $26,100 was sold for $25,000. Prepare the net position section of Falmouth's 2017 statement of net position

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