The Canliss Milling Company purchased machinery on January 2, 2016, for $990,000. A five-year life was...
The Canliss Milling Company purchased machinery on January 2,
2016, for $990,000. A five-year life was estimated and no residual
value was anticipated. Canliss decided to use the straight-line
depreciation method and recorded $198,000 in depreciation in 2016
and 2017. Early in 2018, the company changed its depreciation
method to the sum-of-the-years’-digits (SYD) method.
Required:
2. Prepare any 2018 journal entry related to the
change. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
Homework Answers
Revised depreciation = (990000-396000)*3/6 = 297000
Journal entry
| Date | account and explanation | Debit | Credit |
| 2018 | Depreciation expense | 297000 | |
| Accumulated depreciation-Machinery | 297000 | ||
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