Print by: KENYETTE wtLL?AMS ACCT 2101-SP18-20502-Section ZA-Online-Crews / Homew

Question

Print by: KENYETTE wtLL?AMS ACCT 2101-SP18-20502-Section ZA-Online-Crews / Homework-chito Exercise 9-8 Terry Wade, the new controller of Sheffieid Corp, has reviewed the assets at the beginning of 2019. His findings are as folows. expected useful Bives and salvage values of selected depreciable Accumulated Useful lilfe n Years Date Salrage Value Type of Asset Acquired Cost Bulding Warehouse 1//14 116,000 22,360 25 1/1/19 Old Proposed Old Proposed S0 $37,000 $73,650 1/1/13 810,000 s115,950 40 20 4,200 27,640 Ater dscussion, manegement has agreed to accept Terry's propesed changes Compute the revised annual depreciation on each asset i2019. Bullding Warehouse Revised annual depreciation Prepare the entry to record depreciation on the buiding in 2019. (Credit account tities are automatically Indented when amount amounts Do not indent manualty. Ir no entry is requlred, select No Entry" for the account tities and enter 0 for the Date Account Titles and Explanation Dec 3 Debit Credit Question Attempts: 0 of S used

Explanation / Answer

Buiding :Remaining useful life : 50 -6 years expired (1/1/13-31/12/18) = 44

Revised depreciation : [carrying value at beginning of 2019 -revised salvage value ]/revised useful life

    = [(810000-115950)- 73650 ]/44

     = [694050-73650]/44

       = 620400/44

       = 14100

Warehouse: remaining useful life : 20-5 =15

Revised depreciation : [(116000-22360)-27640]/ 15

          = [93640-27640]/15

         = 13200

2)

Date Account Debit credit december 31 2019 Depreciation expense 14100 Accumulated depreciation -building 14100

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