Kawasaki Company shows the following entries in its Equipment account for 2016. All amounts (in yen, in
Question:
Kawasaki Company shows the following entries in its Equipment account for 2016. All amounts (in yen, in thousands) are based on historical cost.
Instructions
(a) Prepare any correcting entries necessary.
(b) Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2016 under each of the methods listed below.
Assume an estimated life of 10 years, with no residual value. The machinery included in the January 1, 2016, balance was purchased in 2014.
(1) Straight-line.
(2) Sum-of-the-years’-digits.
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Related Book For
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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