Whitney Company purchased equipment on January 1, 2020, for $144,000. This equipment has a useful life...
Whitney Company purchased equipment on January 1, 2020, for $144,000. This equipment has a useful life of ten years and a residual value of $8,000. The company uses the straight-line depreciation method. In 2021, the company discovered that it had incorrectly recorded depreciation for 2020 as $9,280. Ignoring income taxes, record the correcting entry on January 1, 2021.
| Date | Account Name | Dr. | Cr. |
|---|---|---|---|
| Jan. 1, 2021 | Answer | Answer | Answer |
| Answer | Answer | Answer |
Homework Answers
Solution:
Depreciation charged for 2020 = $9,280
Actual depreciation for 2020 using straight line method = ($144,000 - $8,000) / 10 = $13,600
| Whitney Company | |||
| Journal Entries | |||
| Date | Particulars | Debit | Credit |
| 1-Jan-21 | Retained Earnings Dr | $4,320.00 | |
| To Accumulated Depreciation - Equipment | $4,320.00 | ||
| (To record correcting entry for depreciation) |
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Whitney Company purchased equipment on January 1, 2020, for
$144,000. This equipment has a useful life...
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12-36
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12-35 a useful lide of ine method. Compute depreciation anuary 1,2019, for $36,000 which will be...
12-35
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Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,058,000....
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12-32
cpeise for 2020 Brief Exercise 12-32 Whitney Company purchases equipment on July 1, 2020, for $34,000. This o Computing Depreciation years and a residual value of $4,000. The company uses the straight-line with an Estimate Change LO4 2022, the company extended the estimate of the total useful life to six $2,000. Compute depreciation expense for 2022 equipment has a useful life of five depreciation method. On lamuary 1, adjusted the salvage value to equipment h Exercise 12-33 Whitney Company...
Recording Entry for a change in Estimate Exon Company purchased equipment for $160,000 on January 1,...
Recording Entry for a change in Estimate Exon Company purchased equipment for $160,000 on January 1, 2018. The equipment has an estimated residual value of $4,800 and an estimated useful life of 8 years. The company depreciates the equipment using the straight-line method. On January 1, 2021, the company determines that the total useful life is 6 years and the estimated residual value is $1,600. Required Prepare the entry to record depreciation expense for 2021. Date Account Name Dec 31,...
12-36
,Phelps . lt is depreciation expense for 2020 Method LOS Brief Exercise 12-36 Whitney Company purchased equipment on January 1, 2020, for $90,000. This equipment has a and a residual value of $5,000. The company uses the straight-line depreciation method. In 2021. the usefaul life of tea pany discovered that it had incorrectly recorded depreciation for 2020 as S580·Igor the correcting entry on January 1, 2021. し06 ing income taxes, record e Error Correction LO6
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,000,000. This cost figure included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total $1,850,000 30,000 20,000 100,000 $2,000,000 The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020. In 2021, after the 2020 financial statements were issued, the company decided to switch...
Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,036,000. This cost figure included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total $1,880,000 33,000 23,000 100,000 $2,036,000 The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020. In 2021, after the 2020 financial statements were issued, the company decided to switch...
12-35
a useful lide of ine method. Compute depreciation anuary 1,2019, for $36,000 which will be depreciated using the sum-. ue of 6,000 and a useful life of three years, In 202. quipment has a residual val hine has an original total useful life of four years and $3,000 salage value Wha 20, DIEciation expense for 2020? Phelps Company purchases years'-digits method. The eq equipment on January 1, 2019,for S uipment has a residual $6 36,000 which will be depreciated...
Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,058,000. This cost figure included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total $1,890,000 34,000 24,000 110,000 $2,058,000 The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020. In 2021, after the 2020 financial statements were issued, the company decided to switch...
12-32
cpeise for 2020 Brief Exercise 12-32 Whitney Company purchases equipment on July 1, 2020, for $34,000. This o Computing Depreciation years and a residual value of $4,000. The company uses the straight-line with an Estimate Change LO4 2022, the company extended the estimate of the total useful life to six $2,000. Compute depreciation expense for 2022 equipment has a useful life of five depreciation method. On lamuary 1, adjusted the salvage value to equipment h Exercise 12-33 Whitney Company...
Recording Entry for a change in Estimate Exon Company purchased equipment for $160,000 on January 1, 2018. The equipment has an estimated residual value of $4,800 and an estimated useful life of 8 years. The company depreciates the equipment using the straight-line method. On January 1, 2021, the company determines that the total useful life is 6 years and the estimated residual value is $1,600. Required Prepare the entry to record depreciation expense for 2021. Date Account Name Dec 31,...
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