On January 1, 2017, the Morgantown Company ledger shows Equipment $32,000 and Accumulated Depreciation—Equipment $9,000. The depreciation resulted from using the straight-line method with a useful life of 10 years and salvage value of $2,000. On this date, the company concludes that the equipment has a remaining useful life of only 4 years with the same salvage value. Compute the revised annual depreciation.
Answer to relevant QuestionsGunkelson Company sells equipment on September 30, 2017, for $18,000 cash. The equipment originally cost $72,000 and as of January 1, 2017, had accumulated depreciation of $42,000. Depreciation for the first 9 months of 2017 ...On July 1, 2017, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of ore of uniform grade. During the last 6 months of 2017, 100,000 tons of ore were mined.Instructions(a) Prepare the journal entry to ...On January 1, 2017, the ledger of Accardo Company contains the following liability accounts.Accounts Payable ....... $52,000Sales Taxes Payable....... 7,700Unearned Service Revenue..... 16,000During January, the following ...For the year ending December 31, 2017, Soto Inc. reports net income $170,000 and dividends $85,000. Prepare the retained earnings statement for the year assuming the balance in retained earnings on January 1, 2017, was ...Newland Company reported retained earnings at December 31, 2016, of $310,000. Newland had 200,000 shares of common stock outstanding at the beginning of 2017. The following transactions occurred during 2017.1. An error was ...
Post your question