Verify the depreciation calculations. Are there any errors? Put the errors in th
ID: 2651258 • Letter: V
Question
Verify the depreciation calculations. Are there any errors? Put the errors in the form of an adjusting journal entry, assuming that 90 percent of the depreciation on the buildings and the press has been charged to Cost of Goods Sold and 10 percent is still capitalized in the inventory, and the other depreciation expense is classified as General and Administrative Expense (i.e., building and press depreciation is considered a product cost; inventory on hand includes 10 percent of the depreciation expense for buildings and the press: $180,700; Cost of Goods Sold contains the other 90 percent: $1,626,300). (In cases where no entry is required, please select the option "No adjusting journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Enter your answers in dollars and not in millions of dollars. Omit the "$" sign in your response.
Bart's Company has prepared the PP&E and depreciation schedule shown in Exhibit 8.46.1 below.Explanation / Answer
On computer B system the deprecation is calculated only for 8 months not for full years ($583,000). So, the amount of deprecation is $389,000.
The deprecation on press only $75,000 not or instead of $150,000
General Journal Debit Credit Accumulated Depreciation $269,000 Cost of Goods Sold $67,500 Inventory 7,500 General and Admit Expense 194,000Related Questions
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